Thanks for joining us for part 2 of our five-part blog series setting up expectations during the home selling process. This series will cover:

  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 sellers, like this post, and one for buyers—because the concerns and responsibilities can differ greatly depending on your role in the transaction. So, let’s discuss your new escrow process!

Once your home goes under contract, the agreement is delivered to the escrow office, officially opening escrow. Escrow fees are shared between buyer and seller, and the escrow officer serves as an independent third party—neutral, but essential to guiding the process. Escrow cannot act without joint instructions from both parties, which come from the contract or later signed amendments.

Escrow’s job is to facilitate the transaction while coordinating with you, the buyer, the title company, both real estate agents, and in some cases, lenders, attorneys, and insurance providers.

As with the buyer’s side, time is of the essence. Quick responses are important to keep the process moving smoothly. Here are a few steps that matter early on:

  1. Buyer’s Good Faith Deposit – The buyer has 3 business days to wire their deposit into escrow. Once escrow receives and confirms the funds, both agents are notified so you know the buyer is performing under the contract.
  2. Escrow Instructions – Soon after the deposit clears, you’ll receive escrow instructions. These mirror the contract and explain how escrow will proceed. Review, sign, and return them within 5 days of receipt.
  3. Grant Deed – As the seller, you’ll also receive a Grant Deed prepared for transfer of ownership. This must be signed and notarized. Many escrow companies will assist with notary services, or you can use your own.

Once the buyer’s funds and loan are in place, escrow will release the file to the title company for recording. In Los Angeles County, this process typically unfolds over three days:

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

After recording, escrow balances the accounts and issues a final closing statement. Funds owed to you will be transferred based on your earlier escrow instructions.

✅ Seller Tips

  • Save your closing statement. It contains important tax information for the year of sale. You’ll also receive an IRS Form 1099-S at the start of the following year showing the gross proceeds from your sale—be sure to provide both to your tax preparer.
  • Understand the home warranty. If the purchase contract required you to pay for a buyer’s home warranty, know that this protects you as well. Many small issues arise after a home changes hands, and the warranty can help smooth over disputes by covering repairs the buyer might otherwise assume were “the seller’s responsibility.”

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. Sell with confidence.

Note: Some details may vary by state or county. Always check with your local agent for specifics.