Quick answer: Escrow is a neutral third party that holds funds and documents and makes sure every condition of the sale is met before money and ownership change hands. In California, escrow typically opens when your offer is accepted and closes when the sale records — protecting both buyer and seller throughout.
Key takeaways
- Escrow is a neutral holder of funds and documents.
- It ensures all sale conditions are met before closing.
- It opens at acceptance and closes when the deed records.
- It protects both buyer and seller.
- Your deposit and closing funds pass through escrow.
What the escrow company does
- Holds your earnest money deposit
- Coordinates title, loan, and signing documents
- Collects and disburses funds at closing
- Confirms conditions and contingencies are satisfied
- Records the sale so ownership transfers
The escrow timeline
Escrow usually runs the length of your contract — often about 30 days on a financed purchase. During this window inspections, the appraisal, and loan approval happen, and you’ll sign documents near the end before funds are released and the sale records.
Your role during escrow
Respond promptly to your lender and escrow officer, and keep your finances steady. Have questions about your situation? Book a free consultation and we’ll help you plan the next step.
Frequently Asked Questions
What is escrow in real estate?
A neutral third party that holds funds and documents and ensures all conditions of the sale are met before ownership and money change hands.
When does escrow open and close?
In California it typically opens when your offer is accepted and closes when the deed records and funds are disbursed.
How long does escrow take?
Often about 30 days on a financed purchase, though cash deals can be shorter.
What does the escrow company do?
It holds the deposit, coordinates title and loan documents, satisfies conditions, and disburses funds — acting neutrally for both sides.
Who pays for escrow?
Escrow fees are part of closing costs and are typically split or negotiated between buyer and seller per local custom.
Written by Surbhi Gupta, REALTOR® · CA DRE# 02314083 · eXp Realty of California, Inc. Serving Fremont, Union City, Newark, Hayward & Milpitas. This article is for general education, not financial advice — confirm current figures with a licensed professional.
