Title & escrow
How the closing process works in California — in plain language, with typical costs.
The escrow process
Five phases between accepted offer and keys-in-hand. The whole thing usually runs 21–35 days.
- 01
Open escrow
Once your offer is accepted, the agents open escrow with a title/escrow company. Your earnest money deposit goes here, held neutrally for the duration.
- 02
Title search
The title company researches the home's ownership history, looking for liens, judgments, easements, or anything that would cloud the title. Takes 5–10 days.
- 03
Inspections & disclosures
Buyer-ordered inspections happen here. Seller-disclosed reports (HOA documents, natural hazard reports, lead paint, etc.) come through escrow.
- 04
Loan underwriting
Your lender finalizes underwriting in parallel — verifying the appraisal, employment, and final documents. Loan approval triggers final closing prep.
- 05
Closing & funding
Final signing (in person or remote-online), wire of funds, recording at the county. Keys handed over.
Typical closing costs
Sample figures only — your title/escrow company prepares an itemized Closing Disclosure 3 days before closing.
| Item | Typically paid by | Typical range |
|---|---|---|
| Title insurance | Split or seller (varies by negotiation) | $1,500–$4,000 |
| Escrow fee | Split | $1,500–$3,000 |
| Lender origination & fees | Buyer | 0.5–1.5% of loan |
| Appraisal | Buyer | $500–$800 |
| Recording & transfer taxes | Seller | $1.10 per $1,000 of price |
| Prorated property tax | Both, prorated to closing date | Varies |
| Prepaid insurance & impounds | Buyer | Several months upfront |
Common questions
-
What is title insurance and why do I need it?
Title insurance protects against legal claims on the property's title — for example, an unknown heir surfacing or a forged signature in a past transfer. There are two policies: lender's title insurance (required, protects the bank) and owner's title insurance (optional but strongly recommended, protects you).
-
Who picks the escrow company?
In California, it's typically negotiated at offer time but often defaults to the buyer's choice. I have title/escrow companies I trust and will recommend if you don't have a preference.
-
How much should I budget for buyer closing costs?
Plan for 1–2% of the purchase price for buyer-side closing costs in addition to your down payment. On a $1M home, that's $10k–$20k.
-
Can closing be delayed?
Yes — the most common causes are loan underwriting hiccups, repair negotiations, or document delays. We build buffer into the timeline and communicate early when something might slip.
Questions about closing?
I work with title and escrow companies on every transaction. Happy to explain the line items on a sample disclosure or recommend who I'd use.