Thanks to California Escrow Law (Section 17003) we know that the term “escrow” means a deposit of funds but how long does the actual escrow period last?
If you’re buying a home with cash an escrow period can last as little as 5 days but, if you’re buying a home with a mortgage loan you can expect your escrow period to last for as long as 30 to 45 days.
How the Escrow Period Works
The escrow period will start on the day following when your offer has been accepted by the seller. When the seller accepts your offer you both will sign the California Purchase Agreement, a document which will reflect the terms of the sale of the home you are buying.
After the California Purchase Agreement is signed the next step is for the seller to choose the escrow company then you will need to wire transfer a 3% good Faith Deposit into escrow, after that escrow instructions will be sent out to you and the seller within 3 days.
What Are The Duties Of An Escrow Holder?
During the process of closing escrow the escrow holder basically acts as a “middle man” through the process and is responsible for handling the money and documents, paying bills related to the sale and responding to requests from both principals involved.
Once all terms have been met and both principals are satisfied you will receive a settlement statement where you will have to pay the total escrow costs which can amount to about 1.5%.
When Can You Take Possession Of The Home?
The big question you might have right now is when can I take possession of the home after escrow closes?
You will be able to take possession of the home at 5:00 pm on the day it closes escrow.
Going through the escrow period can seem like it takes a long time but because you will have to have the home inspected, read and sign disclosures plus other documents the lender requires you to sign but the end result is worth it because once escrow closes and your escrow officer has paid all funds which are due, ownership will be transferred and you will be able to move into your new home.
Buy a Southern California Home
To get started with buying a Southern California home contact Fred Sed & Associates today by calling us at (949) 272-0125.