If you’re buying or selling a home in California, you’ve probably heard the word escrow come up often. But how long does escrow actually take, and what can affect the timeline? In this post, we’ll explain the typical length of escrow in California and explore the common reasons it can speed up or slow down.
What Is Escrow in a Real Estate Transaction?
Escrow is the period between a seller accepting an offer and the official close of the sale. During this time, a neutral third party—known as the escrow company—holds all funds and documents until both buyer and seller meet the terms of the purchase agreement.
Think of escrow as a secure checkpoint that ensures everyone meets their obligations before the home changes hands.
How Long Is Escrow in California?
The typical escrow period in California is 30 to 45 days. However, the actual length depends on the agreement between buyer and seller, financing requirements, and other variables.
While 30 days is common, some transactions close in as little as 21 days, while others may require 60 days or more—especially when contingencies or special circumstances are involved.
What Can Cause Escrow Timelines to Change?
Even when both parties are motivated, several factors can delay or accelerate the escrow timeline. Here are some of the most common:
1. Loan Approval Delays
If the buyer is financing the purchase, the lender will conduct a thorough review of their financials. Missing paperwork, employment verification issues, or credit concerns can delay final loan approval.
2. Appraisal Issues
Lenders require an appraisal to confirm the home’s value. If the appraisal comes in lower than the agreed-upon price, it may result in renegotiations—or even a second appraisal—causing a delay.
3. Title Problems
Escrow can’t close unless the title is clear. Unexpected liens, ownership disputes, or unpaid taxes can all delay the closing until resolved.
4. Repair Negotiations
Home inspections often uncover issues that require repairs. Negotiating those repairs—or waiting for them to be completed—can add days or weeks to the escrow timeline.
5. Contingency Extensions
Many buyers include contingencies for financing, home inspections, or the sale of their current property. If these are not met in the expected time frame, an extension may be requested.
6. Buyer or Seller Delays
Scheduling conflicts, travel, slow communication, or missed paperwork can all impact the escrow timeline—even when everything else is in order.
Can Escrow Close Early?
Yes! If there are no delays with financing, inspections, or documentation, and both parties are prepared, escrow can close early. This is especially common in all-cash transactions or when everyone is highly motivated and organized.
How to Keep Escrow on Schedule
Here are a few tips to help ensure a smooth and timely closing:
- Work with experienced real estate professionals.
- Respond quickly to requests from your agent, lender, or escrow officer.
- Avoid making big financial changes before closing (like switching jobs or financing a large purchase).
- Make sure your financing is pre-approved before submitting an offer.
Final Thoughts
While 30 to 45 days is the average escrow period in California, every transaction is unique. Understanding what affects the timeline—and working with the right team—can help you close on time and with less stress.
If you’re in the process of buying or selling a home and want expert guidance through escrow, get in touch with our team. We’re here to help make your transaction smooth from start to finish.
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