Escrow in California: Peninsula Step-By-Step

Ever feel like escrow is a black box that slows everything down? If you are buying or selling on the San Mateo Peninsula, the steps are clear once you know who does what and when. You want a smooth closing, clear communication, and no last‑minute surprises. This guide walks you through escrow in California from acceptance to recording, with Peninsula norms, timelines, and tips to keep things moving. Let’s dive in.

Who is in your escrow team

• You and the other party: You sign the contract, meet deadlines, and authorize changes.
• Your agents: They coordinate inspections, contingencies, communication with escrow and the lender.
• Escrow officer: A neutral third party who opens and manages the trust account, tracks instructions, prepares closing statements, and coordinates recording and disbursements. Escrow entities in California are licensed and regulated by the Department of Financial Protection and Innovation.
• Title company: Performs the title search and issues title insurance. Many firms combine escrow and title.
• Lender: Orders the appraisal, underwrites the loan, and wires funds for closing when cleared.
• County offices: The San Mateo County Recorder, Assessor, and Tax Collector handle recording, documentary transfer taxes, and property tax matters.
• HOA management: Provides governing documents, budgets, estoppel letters, and payoff details for condos and townhomes.

The Peninsula escrow timeline

Step 1: Acceptance and open escrow

Once your offer is accepted, your agent or the buyer opens escrow with the agreed company. The escrow officer issues an escrow number and trust account details, usually within 24 to 48 hours.

• What you do: Send the signed contract and deposit the earnest money per your contract. Confirm approved deposit methods and always verify wiring instructions verbally with your escrow officer.
• Peninsula note: In competitive offers, earnest money tends to be larger and the deposit is made quickly. Escrow will send a receipt when funds clear.

Step 2: Title search and preliminary report

The title company issues a preliminary title report listing liens, easements, covenants, and other recorded matters. You and your agent review the report and request clearance of items that must be resolved before closing.

• What to watch: Mortgages and tax liens that need payoff, utility or access easements, and any restrictions that affect future plans.
• Peninsula note: Older properties may show utility easements or historic covenants. Most are routine, but you should understand them.

Step 3: Seller disclosures and property reports

California law requires sellers to deliver disclosures early in escrow. Expect the Transfer Disclosure Statement, Natural Hazard Disclosure, lead‑based paint disclosure for older homes if applicable, Megan’s Law notice, and any local or property‑specific items.

• What to watch: Known structural or foundation issues, seismic retrofits, open permits, PACE assessments, and city compliance notices.
• Timing: Your inspection contingency often runs from delivery of disclosures, so request and review them as soon as possible.

Step 4: Inspections and contingency periods

Typical contingencies include inspections, appraisal, loan, title, disclosures, and for condos, HOA review. You should schedule inspections immediately to stay within your contingency windows.

• Common inspections: General home, termite, roof, sewer line scope, chimney, HVAC, and specialized inspections if needed.
• Peninsula note: Sewer scopes are common for older homes. HOA buyers should review budgets, reserves, rules, and any pending special assessments quickly.

Step 5: Loan processing, appraisal, and underwriting

Your lender orders the appraisal and completes underwriting. If the appraised value comes in lower than the purchase price, you and the other party can renegotiate price, you can add cash to cover the gap, or you may cancel if your contract provides that option.

• Timing: Loan timelines often set the escrow length. Financed escrows commonly take 30 to 45 days, although faster closings are possible with strong preapproval and quick appraisal.
• Pro tip: If your neighborhood has fast‑moving prices, discuss appraisal gap strategies early.

Step 6: Clear title, HOA, and closing conditions

Escrow and title clear recorded liens and judgments, and collect payoff demands. For condos and townhomes, escrow coordinates the HOA estoppel and any transfer fees. You review remaining title exceptions, lender requirements, and HOA documents.

• Peninsula watch list: PACE assessments, municipal liens, and unresolved permit issues can affect closing. Identify and address these early.

Step 7: Final documents, signing, and funding

Buyers sign loan and closing documents. Sellers sign the deed and transfer forms. Many title firms offer e‑signing for some documents and remote notarization for others. Confirm what is available and what requires in‑person notarization.

• Wire safety: Call your escrow officer at a known phone number to verify wiring details. Do not rely on emailed instructions alone.
• Funding: The lender wires funds to escrow when cleared. Cash buyers wire their balance. Escrow verifies all money is in before recording.

Step 8: Final walkthrough, recording, and keys

You complete a final walkthrough 24 to 48 hours before closing to confirm property condition and agreed repairs. Escrow then submits documents to the San Mateo County Recorder.

• Recording: Many Peninsula counties accept e‑recording, which can speed up timing. Exact timing depends on county workload and document readiness.
• After recording: Escrow disburses proceeds, pays off liens, and provides final settlement statements. Keys are released per your contract, usually after confirmation of recording.

What to expect on the Peninsula

Timelines and communication

• Financed transactions commonly close in 30 to 45 days. All‑cash and well‑prepared buyers can close faster.
• Inspection windows vary by contract. Many buyers schedule inspections within the first few days to meet short contingency deadlines.
• Title reports typically arrive within days. HOA documents and estoppels can take several days to a couple of weeks, so order them right away.
• Expect frequent updates by email and phone. Small delays can push recording, so prompt replies matter.

Deposits, costs, and taxes

• Earnest money: Deposits are held in escrow’s trust account. Amount and timing follow your contract. Larger deposits are common in competitive scenarios.
• Buyer costs: Budget for lender fees, title and escrow fees, county recording fees, documentary transfer taxes, and prorated property taxes.
• Seller costs: Expect broker commissions and loan or lien payoffs. Some costs are negotiable by contract.
• Transfer tax: Counties, and sometimes cities, collect documentary transfer taxes. San Francisco sets its own transfer tax scale. Confirm exact amounts with your escrow and the county recorder.

Common pitfalls and how to avoid them

• Missed contingency deadlines can limit your options. Track dates and request extensions in writing if needed.
• Late discovery of liens or city orders can delay closing. Review the preliminary title report early and address exceptions promptly.
• Appraisal shortfalls can derail financing. Plan for negotiations or additional funds if your market is appreciating quickly.
• HOA delays can push your close. Request HOA documents and estoppels immediately after acceptance.

Quick checklists

Buyer checklist

• Open escrow and deposit earnest money right away.
• Review the preliminary title report and seller disclosures within the first week.
• Schedule inspections immediately and track your contingency dates.
• Provide your lender with full documentation and follow appraisal and underwriting milestones.
• Verify wiring instructions by phone before sending any funds.
• Do a final walkthrough 24 to 48 hours before closing.

Seller checklist

• Deliver complete disclosures early, including required state and local forms.
• Work with escrow and title to clear liens and gather payoff demands.
• For condos and townhomes, request HOA documents and estoppels immediately.
• Confirm any city compliance items and address known issues.
• Be available for quick signatures and coordination to meet the closing timeline.

Local offices and documents to know

• San Mateo County Recorder, Assessor, and Tax Collector handle recording, documentary transfer taxes, and property tax matters.
• City clerks can advise on municipal transfer taxes and local requirements.
• Major title and escrow firms provide Bay Area checklists, timelines, and explanations of title insurance and closing steps.

Work with a local team that keeps you ahead

Escrow should feel clear, not confusing. With deep Peninsula experience and a client‑first approach, you get steady guidance through each step, from opening escrow and inspections to recording and keys. If you are planning a sale or purchase in San Mateo, Redwood City, South San Francisco, or nearby communities, we will help you set realistic timelines, avoid wire fraud, and keep your closing on track.

Ready to move with confidence? Connect with the family‑led team at Sayage Realty Group to map your path and schedule a consultation.

FAQs

Who chooses the escrow and title company in San Mateo County?

• Either party can propose a company. Local custom often follows whoever pays for title insurance, and your agents typically coordinate selection early in negotiations.

Where does my earnest money go and can I get it back?

• Your deposit goes into escrow’s trust account. Return rights depend on your contract and contingency status. If you cancel within a valid contingency, funds may be returned subject to the agreement.

What is a preliminary title report and why does it matter?

• It lists all recorded items that affect ownership, such as liens, easements, and covenants. You use it to identify what must be cleared and to confirm insurability for you and your lender.

What are common Peninsula inspection issues I should expect?

• Older homes may need sewer line repairs, termite treatment, roof work, or foundation evaluation. For condos and townhomes, review HOA reserves and any pending special assessments.

What happens if the appraisal comes in low on the Peninsula?

• You and the seller can renegotiate price, you can bring additional cash to cover the gap, or you may cancel if your contract includes an appraisal contingency.

Can escrow instructions be changed after opening?

• Yes. Changes require mutual written agreement by buyer and seller. Escrow will document and follow the updated instructions.

How do I avoid wire fraud during closing?

• Call your escrow officer at a verified phone number to confirm wiring details before sending funds. Do not rely on emailed instructions alone.

When are keys released in San Mateo County?

• Keys are usually released after confirmation of recording at the county. E‑recording can speed timing, but exact release depends on your contract and county processing.