Buying or selling in Elk Grove and wondering what actually happens in escrow? You are not alone. Escrow can feel mysterious until you see who does what, when it happens, and how money and documents move to closing. In this guide, you will learn the California escrow basics, a step-by-step Elk Grove timeline, common contingencies, typical costs, and local tips to keep your closing smooth. Let’s dive in.
What escrow means in California
Escrow is a neutral process where a licensed escrow holder receives and holds funds and documents, follows the written instructions in your purchase agreement, and closes once all conditions are met. In California, title companies often provide both escrow services and title insurance. The escrow officer coordinates signatures, funds, payoffs, and recording, but does not provide legal advice.
Your contract controls the timeline. Most local transactions use standard forms that spell out deadlines for deposits, inspections, loan approval, appraisal, title review, and final signing.
Who does what in escrow
- Buyer: Deposits earnest money, orders inspections, applies for the loan, reviews title and disclosures, signs closing documents, and brings funds to close.
- Seller: Completes disclosures, provides access for inspections, resolves title issues, signs the deed and closing documents, and pays agreed costs.
- Buyer’s and listing agents: Advise you, coordinate inspections and contractors, track deadlines, and communicate with escrow and the lender.
- Escrow officer: Opens escrow, holds funds, prepares settlement figures, collects documents, coordinates payoffs and recording, and disburses funds per instructions.
- Title company: Researches the title, identifies liens or exceptions, and issues owner’s and lender’s title insurance policies.
- Lender: Underwrites the loan, orders the appraisal, clears conditions, and funds at closing.
- Sacramento County Recorder: Records the deed and mortgage so the transfer becomes public record.
Elk Grove escrow timeline
Below is a typical sequence. Exact dates are set by your signed purchase agreement and can be negotiated.
Day 0–3: Open escrow
- You have an accepted offer. The contract goes to the selected escrow company and an escrow number is issued.
- The buyer typically wires the earnest money deposit within 1 to 3 business days of acceptance.
Days 1–7: Early setup
- Escrow orders a preliminary title report and shares any exceptions for review.
- Escrow requests payoff statements for any seller liens or mortgages.
- For homes in an HOA, HOA documents and an estoppel letter are ordered to outline dues, rules, transfer fees, and any known assessments.
Days 7–21: Contingency periods
- Inspection contingency: The buyer completes home and pest inspections and may request repairs or credits.
- Loan and appraisal contingencies: The buyer’s lender processes the loan and orders the appraisal. Underwriting reviews the file as reports arrive.
- Title review: The buyer reviews the preliminary title report and raises any objections within the contract window.
Day 7–30+: Contingency removal and underwriting
- The buyer removes contingencies in writing by the agreed deadlines or cancels per the contract.
- If the appraisal comes in low, the parties may renegotiate, the buyer may add funds, or the deal may cancel based on the contingency language.
Week before closing: Sign and prepare
- Escrow prepares your closing figures with prorations and fees. Depending on the loan type, you may see a Closing Disclosure, settlement statement, or HUD-1.
- The lender sends final funding instructions. Escrow prepares the deed and other documents for signature.
- The final walkthrough is usually scheduled within 24 to 48 hours of closing.
Closing day: Fund and record
- The buyer wires final funds. The lender funds the loan to escrow.
- Escrow disburses money, records the deed and mortgage with Sacramento County, and issues title policies.
- Keys are released per the contract instructions.
Typical timeframes
- Cash closings: About 7 to 14 days when title and HOA items are clear.
- Financed closings: About 21 to 45 days is common, with many at 30 days. Jumbo or complex files may take longer.
Common contingencies explained
Inspection contingency
You order general home and pest inspections during your inspection window. If issues are found, you can request repairs or credits, or cancel as allowed by your contract. Escrow does not negotiate repairs, but it can hold agreed funds or credits for closing per written instructions.
Loan and appraisal contingencies
Your loan must be approved within the agreed period. The lender relies on a licensed appraisal. If value comes in below the price, options include renegotiation, adding cash, or cancellation according to the appraisal contingency.
Title and HOA contingencies
You review the preliminary title report for liens, easements, or exceptions. The seller typically resolves liens before closing. If there is an HOA, the HOA provides an estoppel with dues, fees, and any assessments. Some HOAs take longer to deliver documents, which can affect the timeline if not ordered early.
Disclosures and natural hazards
California requires sellers to provide statutory disclosures. If required disclosures are late, buyers may have remedies under the contract that can impact timing.
Closing costs in Sacramento County
Who pays what can vary by contract and local custom. Your purchase agreement should clearly state any negotiated cost splits.
Fees commonly charged through escrow
- Escrow fee for administering the closing, often split or negotiated.
- Recording fees for the deed and mortgage, paid at closing.
- Notary, document prep, and courier fees when applicable.
- HOA estoppel and transfer fees for HOA properties.
- Prorated property taxes and assessments credited to the correct party as of the day of closing.
Title and lender-related costs
- Lender’s title insurance policy, typically paid by the buyer when there is a loan.
- Owner’s title insurance policy, paid by buyer or seller depending on Sacramento-area custom and your contract.
- Loan-related fees such as origination, appraisal, credit report, and underwriting, typically buyer-paid.
Transfer taxes and assessments
- City or county documentary transfer taxes may apply. Confirm the current rules and who pays in your contract.
Buyer’s typical upfront costs
- Earnest money deposit, credited at closing.
- Inspection fees for home and pest inspections.
- Appraisal fee, often paid prior to closing.
Sacramento County and Elk Grove logistics
- Recording: The Sacramento County Recorder handles deed and mortgage recording. Ask your escrow team about current recording cut-off times and fee schedules.
- Transfer tax: Confirm whether county or city transfer taxes apply to your transaction and who pays per the contract.
- Property taxes: Taxes are prorated at closing based on the close date. After a change of ownership, California supplemental assessments can create additional tax bills. These are often paid by the buyer, but your contract can specify a different arrangement.
- HOA timing: Many Elk Grove neighborhoods have HOAs. Order the HOA estoppel immediately and confirm expected turnaround to avoid delays.
Avoiding common delays
Loan and appraisal timing
Submit complete documents quickly and ensure you have a true preapproval. Ask your lender to order the appraisal promptly after opening escrow.
Title issues
If you are selling, share any loan statements, liens, or judgments early so escrow can order accurate payoffs. Build time for payoff processing when needed.
HOA documents
If there is an HOA, have the listing side order the documents right away and follow up to meet your contingency timeline.
Wire fraud protection
Always verify wiring instructions with your escrow officer by calling a known phone number from prior correspondence. Do not rely on email alone for wire details.
Special documents
If you are using a trust or a power of attorney, let your agent and escrow know early. Some documents need extra review or notarization to close on time.
Elk Grove closing checklist
- Confirm the escrow and title company in your offer.
- Set clear contingency dates for inspections, loan, appraisal, title, and HOA documents.
- Deposit earnest money on time and keep proof of wire or delivery.
- Order inspections quickly and review results with your agent.
- Review the preliminary title report and address any questions early.
- For HOA homes, order the estoppel immediately and track delivery dates.
- Clarify in writing who pays the owner’s title policy and any transfer taxes.
- Schedule your final walkthrough 24 to 48 hours before closing.
- Verify wiring instructions by phone with escrow before sending funds.
Ready to move forward?
Whether you are buying your first home or selling a long-time residence, a clear plan for escrow makes all the difference. Our Elk Grove team guides you through each deadline, coordinates with escrow and lenders, and keeps communication clear so you can close with confidence. If you are planning a move, reach out to Portfolio Real Estate for local guidance from offer to recording. Get a free home valuation and personalized plan today at Portfolio Real Estate.
FAQs
What is escrow in a California home sale?
- Escrow is a neutral third party that holds funds and documents, follows written instructions from buyer and seller, and closes only when all contract conditions are met.
How long does escrow take in Elk Grove?
- Cash deals often close in about 7 to 14 days, while financed transactions commonly take about 21 to 45 days, with many targeting 30 days.
When is earnest money due and is it refundable?
- Buyers usually deposit earnest money within 1 to 3 business days after acceptance; whether it is refundable depends on the contract and contingency status.
What happens if the appraisal comes in low?
- You can renegotiate price, add cash to bridge the gap, seek reconsideration, or cancel if allowed by the appraisal contingency.
Who pays for the owner’s title policy in Sacramento County?
- Payment is based on local custom and your purchase agreement; it can be either party and is negotiable.
How are property taxes handled at closing?
- Taxes are prorated to the close date, and after ownership changes, supplemental assessments can generate additional tax bills, often paid by the buyer unless negotiated otherwise.
