Thanks for joining us for part 2 of our five-part blog series about setting up expectations during the home buying process. This series is covering:

  1. Introduction (August blog posted; see here: Congratulations—You’re in Escrow! Here’s What Comes Next)
  2. Escrow Process (this current blog post)
  3. Disclosures & Investigation Responsibilities (October blog post coming)
  4. Financing Process (November blog post coming)
  5. Pre-Closing & Final Steps (December blog post coming)

Parts 2-5 of this series will be split into two parts—one tailored for buyers, like this post, and one for sellers—because the concerns and responsibilities can differ greatly depending on your role in the transaction. So, let’s crack into your new escrow process!

Once your offer has been accepted, the contract is delivered to the escrow office, officially opening escrow. While escrow fees are split between buyer and seller, the escrow officer is an independent third party serving both sides equally. Escrow cannot act unless instructed by both parties. These instructions usually come directly from the purchase contract or from written amendments signed by both parties.

The purpose of escrow is to facilitate the transaction and ensure everything is handled properly. Your escrow officer will coordinate with you, the seller, your lender, the title company, both real estate agents, and sometimes insurance companies or attorneys.

Because time is of the essence in the Residential Purchase Agreement, it’s important to respond promptly to escrow requests. Delays can jeopardize closing dates. Here are a few key deadlines and steps in those first days under contract:

  1. Good Faith Deposit – Buyers have 3 business days to get their good faith deposit (typically 3% of the purchase price) into escrow. Escrow will send secure wire instructions—always confirm them by calling your escrow officer directly before sending funds. Wire instructions should not change during escrow, and the same account will be used for your final transfer of funds before closing. Be extremely cautious about any unexpected “updates” to wire details; wire fraud is a real risk.
  2. Escrow Instructions – Soon after opening escrow, you’ll receive a set of escrow instructions that essentially mirror the purchase contract and outline how escrow will manage the process. Some escrow companies wait until the deposit has cleared before sending these instructions. Review, sign, and return them within 5 days of receipt.

As the process moves forward, escrow will coordinate with all parties. Once all requirements are met—including your loan funding—escrow will release the file to the title company for recording. In Los Angeles County, this is typically a multi-step process:

  • Day 1: Buyer puts funds into escrow.
  • Day 2: Lender transfers loan funds into escrow.
  • Day 3: Title company submits the notarized Grant Deed for recording with the county. (Escrow closes)

Once the deed is recorded, escrow will finalize the accounts and send each party a closing statement. Any excess deposit funds will be refunded to you within a day or two after closing.

✅ Buyer Tips

  • Save your closing statement. This document includes important tax details you’ll need for your tax return in the year of purchase and the year of future sale.
  • Check your home warranty. Many contracts require the seller to purchase a one-year home warranty for the buyer. Call the warranty company first if issues come up with appliances or systems—coverage is often broader than you think. For true emergencies, don’t wait, but remember reimbursement may be possible afterward.

Coming Next Month

We’ll kick off Part 3, Disclosure and Investigation Responsibilities. Can’t wait that long? Timing is everything, so don’t hesitate to reach out to Team Plunkett if you need help.

Leverage the strength of Vista Sotheby’s. Experience the dedicated attention of Team Plunkett. Buy or sell with confidence.

Note: Real estate practices vary by region. This blog is based on common processes in Southern California. Always consult your agent for guidance specific to your area.