Buying a home in Calabasas is exciting, but the word “escrow” can feel like a mystery. You want to know who holds your money, what needs to happen before you get the keys, and how long it all takes. This guide explains the California escrow process with Calabasas context, so you can move from offer to closing with clarity and confidence. You will learn what escrow does, how timelines work, who is responsible for what, and the local factors that can affect closing. Let’s dive in.
Escrow basics in California
Escrow is a neutral third party that holds funds and documents until the buyer and seller meet the terms of the purchase agreement. The escrow holder follows written instructions from both sides, coordinates payoffs and prorations, and closes only when every required condition is satisfied. Escrow does not provide legal advice.
Escrow is different from title. Title professionals examine the property’s history, issue a preliminary title report, and provide title insurance policies. Escrow manages the administrative and financial steps that get you to recording and possession.
For an overview of licensing and how escrow companies operate in California, review the Department of Financial Protection and Innovation’s guidance on escrow law. You can learn more in DFPI’s overview of escrow law.
Typical Calabasas timelines
Exact dates are set in your purchase contract, but here is what buyers in Los Angeles County often see.
30-day financed escrow
- Day 0: Offer accepted. You and the seller sign the purchase agreement. Your earnest money deposit is typically due within 1 to 3 business days.
- Days 1–3: Escrow opens and issues instructions. Title orders the preliminary report. Seller starts disclosures.
- Days 1–10: You schedule inspections. Seller delivers disclosures and any HOA documents that are ready.
- Days 10–17: Inspection period. You review reports and negotiate repairs or credits if needed.
- Days 17–21: Loan and appraisal. You work with your lender toward underwriting approval and review the appraisal result.
- Days 17–21: Contingency removal. You remove inspection, loan, and appraisal contingencies per your contract.
- Closing week: Lender issues the Closing Disclosure, escrow finalizes figures, and you sign loan documents.
- Closing day: Lender funds. Escrow confirms recording with Los Angeles County and releases keys according to the contract.
14-day cash escrow
- Day 0: Offer accepted. Earnest money due per contract.
- Days 1–3: Escrow opens. Title provides preliminary report. Seller disclosures begin.
- Days 3–7: Complete inspections and review disclosures and title.
- Days 7–10: Resolve repair requests or credits. Remove contingencies per contract.
- Days 10–14: Wire remaining funds after verifying instructions and close once recording is confirmed.
Key milestones you will hit
Earnest money and wiring
Your initial deposit goes into a trust account managed by escrow. Large transfers often must be cashier’s checks or wires. Because real estate transactions are targets for fraud, always verify wiring instructions by calling the escrow office using a known, independently verified phone number. Never rely solely on email for wire details.
Seller disclosures and hazards
California requires sellers to disclose known material facts about the property, including natural hazards. In Calabasas, many homes sit near wildland areas, so expect a detailed Natural Hazard Disclosure. You can explore fire-risk designations using Cal Fire’s fire hazard severity zone resources.
Inspections and repair talks
Most buyers order a general home inspection and a termite or pest inspection. Depending on the property, you might add roof, HVAC, pool, septic, or other specialized inspections. If issues come up, you can request repairs or credits through your agent and document any agreement in writing for escrow.
Appraisal and loan approval
If you are financing, your lender orders an appraisal and reviews your file for final approval. If the appraisal is lower than the purchase price, your options usually include negotiating the price, bringing additional cash, or canceling per your appraisal or loan contingency.
Title review and HOA documents
Title issues show up in the preliminary report. Review easements, liens, and any restrictions carefully. If the home is in an HOA, you will receive a resale package that typically includes CC&Rs, bylaws, financials, and meeting minutes. Build time into your schedule to review these documents.
Contingencies and when to remove them
Your contingency periods are negotiated in your offer and drive much of the escrow timeline. The most common are inspection, loan, appraisal, title, and HOA review. Removing contingencies is a major commitment, so do it only after you are satisfied with inspections, financing, title exceptions, and association documents. If you cancel within your contractual contingency rights, your deposit is typically refundable under the contract.
Who does what in escrow
- Buyer: Deposit funds, complete inspections, apply for the loan, review disclosures and title, remove contingencies, sign and wire final funds.
- Seller: Provide disclosures and access, complete agreed repairs or credits, sign deed and payoff documents, deliver keys per contract.
- Escrow officer: Hold funds, follow written instructions, prepare closing statements, coordinate signatures and payoff demands, record and disburse.
- Title officer: Research title, issue the preliminary report, clear conditions, and provide title insurance policies.
- Lender: Underwrite your loan, order appraisal and lender’s title policy, provide loan documents, and fund.
- Real estate agent: Advise on terms and timelines, coordinate inspections, negotiate repairs, and keep everyone on track.
- HOA: Provide resale documents, financials, and required disclosures.
Calabasas factors to consider
- Wildfire and insurance: Many Calabasas properties are near chaparral and hillside terrain. Some insurers require defensible space or mitigation steps, and premiums can be higher. Start your insurance quotes early so your lender’s hazard coverage requirement does not delay closing.
- Hillside and slopes: If the property is terraced or steep, review any available geotechnical reports and permits. Ask your agent to help verify past improvements with the city.
- HOAs are common: Expect HOA resale documents, rules, reserves, and potential special assessments. Delivery timelines can affect your contingency clock.
- Septic or private wells: Some outlying parcels may not be on municipal systems. Order the appropriate inspections and confirm permits.
- Recording and transfer taxes: Recording occurs with the Los Angeles County Registrar-Recorder. You can review county recording information on the Los Angeles County Registrar-Recorder’s recording page. Fee allocation and transfer taxes are negotiable by contract and local custom.
Common pitfalls to avoid
- Late or missing deposit that violates your contract timeline.
- HOA document delays that push contingency removal.
- Appraisal shortfalls that are not resolved quickly.
- Title exceptions or undisclosed liens that require clearance.
- Insurance challenges on homes in higher wildfire risk areas.
- Wire fraud attempts. Always verify instructions by phone using a trusted number.
- Unpermitted work discovered late in escrow.
Your escrow checklist
- Before you offer
- Confirm loan pre-approval and discuss deposit amount and contingency timelines with your agent.
- Decide on an escrow and title provider per your offer strategy.
- After acceptance
- Verify escrow officer contact details and deposit deadline.
- Ask for the preliminary title report timeline and order HOA resale documents if applicable.
- During inspections
- Schedule general, termite, roof, HVAC, pool, and other specialty inspections as needed.
- Gather written bids for major repairs if you plan to request credits.
- During the loan process
- Provide lender documents quickly and track the appraisal.
- Ask about any underwriting concerns tied to hillside location, septic, or wildfire risk.
- Before removing contingencies
- Confirm you are satisfied with inspections, title, HOA documents, and financing.
- Final steps
- Compare your Closing Disclosure and escrow’s closing statement. Ask questions early.
- Verify wire instructions by phone with the escrow office. Then schedule your final walkthrough within 24 to 48 hours of closing.
Fees and who pays
Who pays for title policies, escrow fees, and transfer taxes often follows local custom, but your contract controls. In Los Angeles County, buyers and sellers commonly split some items by negotiation. Ask your escrow and title teams for exact figures and any city-specific taxes or assessments, then confirm how your contract allocates them.
Ready to close with confidence?
Escrow works best when you know the steps, the timelines, and the local issues that can affect closing in Calabasas. If you want a calm, well-managed process and clear guidance from offer to keys, reach out to Nancy Cassidy for a one-on-one consultation. Let’s connect and map out your path to closing.
FAQs
What is escrow in a California home purchase?
- Escrow is a neutral third party that holds funds and documents, follows written instructions from buyer and seller, and closes only when contract conditions are met.
How long does escrow take in Calabasas?
- Cash deals can close in about 7 to 14 days, while financed purchases commonly run 30 to 45 days depending on lender timelines, HOA documents, and title clearance.
How much earnest money do I need as a buyer?
- The amount is negotiated in your offer and deposited into escrow by the deadline in your contract. Ask your agent what is typical for your price point and neighborhood.
What happens if the appraisal comes in low?
- You can negotiate a price change, bring additional cash, or cancel under your appraisal or loan contingency if permitted by your contract.
How do HOA documents affect escrow timing in Calabasas?
- Associations need time to provide CC&Rs, financials, and meeting minutes. Delivery and review windows can influence your contingency deadlines and closing date.
How can I protect my wire transfer to escrow?
- Always call the escrow office at a verified phone number to confirm wiring instructions before sending funds. Do not rely on emailed instructions alone.
