What Is Escrow and What Should San Diego Buyers Expect During the Process?

What Is Escrow?

Escrow is a neutral third-party process in which an independent escrow company holds all funds, documents, and instructions related to your home purchase until all conditions of the transaction are satisfied. In California, virtually all residential real estate transactions close through escrow — it is the mechanism that ensures both buyer and seller fulfill their obligations before any money or property changes hands.

How Escrow Opens

Escrow opens when the executed purchase agreement is delivered to the escrow company along with the buyer's initial deposit (earnest money). The escrow company creates an account, assigns an officer, and begins coordinating all the requirements for both parties.

What Happens During the Buyer's Escrow Period

• Days 1 to 3: Receive and review the seller's disclosures — TDS, SPQ, NHD, and HOA documents
• Days 1 to 17: Home inspection window — schedule and complete all inspections you want to conduct
• Days 1 to 21: Loan contingency period — your lender is processing and underwriting your loan
• Days 5 to 10: Preliminary title report delivered — review with your agent for any title issues
• Day 10 to 17: Appraisal typically occurs during this window
• Day 17 to 21: Contingency removal — you formally remove inspection, loan, and appraisal contingencies
• Days 25 to 30: Sign final loan documents, fund your down payment and closing costs, final walk-through
• Close: County records the deed — you become the owner

What the Escrow Officer Does for Buyers

Your escrow officer prepares all escrow instructions and closing documents, coordinates the payoff of the seller's existing loans, calculates prorations for property taxes and HOA dues, ensures all conditions are satisfied before disbursing funds, and coordinates recording with the county recorder's office.

Staying on Track During Escrow

Respond promptly to every request from your lender, escrow, and buyer's agent during escrow. Missing a deadline — even by a few days — can trigger a Notice to Perform from the seller and potentially jeopardize your transaction. Rieder Homes Group actively monitors every escrow timeline and alerts our buyer clients to upcoming deadlines well in advance.

Related Reading on RiederHomes.com:

→ Blog #163: Escrow Process Detailed

→ Blog #78: Title Search

→ Blog #79: Title Insurance

→ Blog #86: Making an Offer

— Mance Rieder, Broker Associate | Rieder Homes Group | REAL Broker | riederhomes.com | 858-295-0556