Understanding Escrow Processes:
‍A Guide for California Realtors

‍Introduction
Whether you’re working with first-time buyers or seasoned investors, explaining escrow clearly is one of the most important services you can offer as a real estate professional. In California, where escrow is a neutral third party to the transaction, understanding the process is key to building trust and avoiding delays.

What Is Escrow?
Escrow is the process where a neutral third party (the escrow company) holds and manages funds and documents related to the sale of a property until all conditions of the sale are met.

Key Stages of the Escrow Process

1. Escrow Opening – Once a purchase agreement is signed, escrow is opened and both parties submit required documents.
2. Deposit of Earnest Money – The buyer's deposit is held in trust.
3. Document Collection & Title Review – Escrow collects loan documents, disclosures, and clears title.
4. Contingency Period – Inspections, financing, and appraisal contingencies are addressed.
5. Loan Funding & Final Sign-Offs – All parties sign; funds are wired and final docs are prepped.
6. Closing & Recordation – Documents are recorded with the county, and the sale is complete.

Tips for Realtors

• Set expectations early with clients: escrow timelines follow the contract. While the average closing is around 30 days, some may take longer, and others can close in just a few days.
• Partner with a local escrow team familiar with California-specific disclosures and timelines.
• Keep communication clear and proactive—especially around document deadlines.

Closing Thoughts
Escrow may be behind-the-scenes, but for your clients, it’s where trust is built—or lost. A great escrow partner makes you look great too.