Your Offer Was Accepted: What Happens During a California Escrow?
Congratulations. The seller accepted your offer. Celebrate, then open your calendar.
Escrow is not a waiting period. It is an active part of the purchase when the contract, property investigation, financing and closing work all move at the same time.
The dates below are a sequence, not a promise of fixed timing. Your signed contract controls.
Immediately after acceptance
Make sure you have the complete signed agreement and all counters or addenda. Your agent should identify the acceptance date, deposit deadline, contingency dates, closing date and any special obligations.
Escrow receives the contract and opens a file. You will receive instructions and requests for identity or vesting information. Confirm that any communication requesting money is genuine.
The lender should receive the final contract immediately. Provide updated documents and authorize the next steps needed for the loan and appraisal.
Deliver the initial deposit
The deposit must be delivered according to the contract. A commonly used California residential agreement often provides three business days after acceptance, but never substitute that general practice for the date in your own agreement.
Confirm wiring instructions using a trusted phone number. If instructions change, stop and verify. Real estate wire fraud often looks convincing because the criminal has copied names, signatures and transaction details.
Begin insurance work
Ask an insurance professional to evaluate the exact property as soon as possible. Provide the address, construction details, roof information and any reports requested.
If the home is difficult or expensive to insure, you need time to shop and understand the effect on financing. The California FAIR Plan may be an option of last resort for qualifying properties, but its coverage is not the same as a standard homeowners policy and supplemental coverage may be needed.
Review seller disclosures
The disclosure package may include statutory disclosures, questionnaires, reports, title information and property-specific documents. Read it fully. Flag inconsistencies, missing answers and references to repairs, water intrusion, insurance claims, disputes, additions or other material issues.
Disclosures are a starting point. They do not replace the buyer's own investigation.
Schedule inspections
Book the general home inspection quickly, then determine which specialists are appropriate. Santa Barbara properties may justify inspection of the roof, sewer lateral, drainage, foundation, pests, chimney, pool, septic system or other features.
Attend when practical. The written report matters, but a good inspector can explain which findings are routine maintenance and which deserve further evaluation.
Read Home Inspections in Santa Barbara for a fuller checklist.
Continue loan underwriting and appraisal
The lender will verify the borrower and the property. Expect requests for updated statements, explanations or documents. Respond quickly and keep records of large deposits or transfers.
The appraiser provides an opinion of value for the lender. If the value is low or the report creates a property condition, review the contract and options promptly.
Do not make large purchases, open credit or change employment without discussing it with the lender.
Review title and HOA materials
The preliminary title report identifies ownership, liens, easements and other recorded matters. Ask questions about exceptions you do not understand.
For an HOA property, review governing documents, budgets, reserves, insurance, meeting minutes, assessments and litigation. Low monthly dues are not automatically good news if the association is underfunded.
Decide how to respond to investigation results
After reviewing disclosures, reports and inspections, the buyer decides whether to proceed as agreed, request repairs or credits, seek more information, renegotiate if possible, or cancel if a contractual right permits it.
The seller does not have to accept a request for repairs. The buyer does not have to treat every defect as a deal breaker. Focus on safety, systems, water, structure, insurance and meaningful cost.
Address contingencies
Contingencies are governed by the agreement. Calendar dates matter, but removal should follow completed work and an informed decision.
Do not assume a contingency disappears silently on its date. In many California transactions using common forms, removal is made in writing. Notices and rights can depend on the specific documents and performance.
Read California Buyer Contingencies for more detail.
Prepare for signing and funding
Review the final loan and escrow figures. Confirm the amount and source of funds needed to close. Sign loan, escrow and title documents as directed.
Signing does not mean the transaction has closed. The lender still needs to fund, and the deed still needs to record.
Complete the final walkthrough
The final walkthrough confirms the property is in the expected condition, agreed repairs appear complete and included items remain. It is not intended to replace inspections or create a new negotiation over known conditions.
If there is a material change or incomplete agreement, notify your agent immediately.
Recording, keys and possession
Escrow confirms funds and document requirements. Title coordinates recording with the county. Once the transaction records and closes, ownership transfers according to the contract.
Key delivery and possession may occur at closing or later if the agreement includes a seller rent-back. Confirm the exact arrangement before moving trucks arrive.
Keep the four tracks visible
During escrow, ask for a clear status on:
- Contract deadlines
- Escrow and title requirements
- Property investigations and insurance
- Loan and appraisal progress
If any track falls behind, deal with it early. Most escrow emergencies begin as small unresolved tasks.
For the full process, read the Santa Barbara step-by-step buying guide. If your offer was just accepted and you want experienced local guidance, contact Cammie.
This article is general educational information, not legal, tax, insurance or lending advice. Your signed contract and professional advice control your transaction.
