Heard people say “we’re in escrow” and wondered what that actually means when you buy a home in Whittier? You are not alone. Escrow is the engine that moves your purchase from offer to keys, yet it can feel mysterious the first time through. In this guide, you will learn what escrow is in California, how it works day to day in Whittier, what fees and deadlines to expect, and how to protect your money. Let’s dive in.
What escrow means in California
Escrow is a neutral third party that holds funds and documents and follows written instructions from you and the seller. The escrow officer coordinates with your lender and the title company, collects your earnest money and loan funds, prepares closing papers, and sends the deed for recording. When all conditions are met and the deed records with Los Angeles County, you become the owner.
In California, escrow companies operate under state rules and licensing. This structure exists to protect you because escrow handles large sums of money, including your down payment and loan proceeds. In Whittier, your escrow timeline also depends on the county’s recording schedule, so good coordination helps you close on time.
Key terms you will hear
- Earnest money (EMD): Your good‑faith deposit placed into escrow after your offer is accepted. The amount and deposit deadline are set in your contract.
- Contingency: A condition that must be satisfied before you are fully committed. Common examples include inspection, loan, appraisal, title, and HOA documents.
- Appraisal: A lender‑ordered valuation of the property. A low result can trigger renegotiation or extra cash from you, depending on your contract.
- Inspection: A general home inspection, plus a termite or wood‑destroying organism inspection that is common in California.
- Clear to close: Your lender confirms all underwriting conditions are met and authorizes funding.
- Close of escrow (COE): The deed records with the county and funds are disbursed. That is when you officially own the home.
- Title insurance: Policies that protect against past title defects. The owner’s policy protects you and the lender’s policy protects your lender.
Who pays what in Whittier
Customs vary by city and by contract. In much of Los Angeles County, sellers often pay for the owner’s title insurance policy and commonly split escrow fees. Buyers typically pay for the lender’s title policy, their portion of escrow fees, recording charges, and prepaid items.
Property taxes are prorated at closing based on your close date. California’s base property tax rate is around 1 percent of assessed value, plus any voter‑approved assessments. Los Angeles County bills taxes in two installments, due November 1 and February 1. Delinquent dates are December 10 and April 10. Your escrow officer will calculate the exact proration for your transaction.
Always confirm who pays which fees in your purchase agreement and your final closing statement. Local practice is helpful, but the contract controls.
Your 30‑day escrow timeline in Whittier
Below is a common flow for a financed purchase that closes in about 30 days. Actual dates are negotiable and based on your contract.
Day 0: Offer accepted
- Escrow is opened and assigns an escrow number and officer.
- You send your earnest money by the contract deadline. Many contracts set 1 to 3 business days.
- You schedule your inspections. Your lender begins or updates your loan file.
Days 1–3: Setup
- Escrow verifies your earnest money and issues a receipt.
- The title company produces a preliminary title report. HOA status is requested if applicable.
- You deliver initial loan documents to your lender.
Days 4–10: Inspections
- General and termite inspections happen early so you have time to review.
- You decide whether to request repairs or credits, or move forward as is.
- The lender orders the appraisal after receiving the contract and property details.
Days 10–17: Appraisal and contingencies
- The appraiser visits and returns a report to the lender.
- You and the seller target removal of the inspection contingency within this window, unless you negotiate a different date.
- If the appraisal is low, you and the seller decide whether to adjust price, add cash, or cancel per your contract protections.
Days 17–21: Underwriting
- Your lender issues conditions to reach clear to close. You provide any final documents, including proof of funds and your insurance binder.
- Any title issues discovered in the preliminary report, such as liens, are addressed before closing.
Days 21–28: Final numbers
- Your lender issues final approval and clear to close when all conditions are satisfied.
- You receive your Closing Disclosure. Federal rules require you to have it at least 3 business days before you sign.
- You wire your remaining funds to escrow based on the final figures. Always verify wire instructions by phone using a known number.
Day 30: Close of escrow
- The lender funds the loan, escrow sends documents for recording, and the deed records with Los Angeles County.
- Escrow disburses funds to the seller and pays off any liens.
- You receive keys as set in your contract. Title insurance policies are issued.
Note: Some escrows close faster or slower. In LA County, 21, 30, 35, or 45 days are all common depending on lender speed, contingency lengths, HOA documents, and repairs.
Contingencies and deadlines to track
- Inspection contingency: Often 10 to 17 days. Lets you inspect, negotiate repairs or credits, or cancel if needed.
- Loan contingency: Commonly 17 to 21 days. Protects you if your lender cannot approve the loan on time.
- Appraisal contingency: Often linked to the loan contingency. If the value is lower than price, you may renegotiate or cancel per contract.
- Title contingency: Gives time to review the preliminary title report and object to unacceptable items.
- HOA documents (if condo or townhome): You receive a package to review. Delivery delays are common and can affect timing.
Your earnest money is typically refundable if you cancel within valid contingency periods. Once you remove contingencies, your deposit can be at risk if you do not perform. Always follow the exact dates in your contract.
Documents you will provide
- Government ID and the signed purchase agreement with any addenda
- Proof of funds for down payment and closing costs
- Loan disclosures requested by your lender
- Homeowner’s insurance binder
- HOA documents acknowledgment and related addenda if applicable
- Vesting instructions that state how you will hold title
- Wiring details for funds to close, verified directly with escrow by phone
Common issues and how to avoid them
- Low appraisal: Discuss plan A and plan B early. If value is tight, consider extra comps from your agent and be ready to negotiate or add cash per contract.
- Slow HOA documents: If buying in an HOA, request the package immediately after opening escrow and build time for review.
- Title issues: Liens and judgments must be cleared before recording. Ask escrow about any exceptions as soon as the preliminary title report arrives.
- Underwriting delays: Respond to lender document requests within 24 hours when possible. Keep all large bank transfers documented.
- Termite or repair items: Order inspections early and get repair bids quickly so you can negotiate without pushing the timeline.
- Wire questions: Any mismatch in wire details can delay funding. Confirm instructions by calling the escrow company using a verified number.
Wire safety checklist
- Call your escrow officer using a phone number from the opening package or the company website you find yourself. Do not rely on phone numbers in a new email.
- Confirm the escrow company name, account name, and full routing and account numbers before sending any wire.
- Send a small test call to your escrow officer right after you wire to confirm receipt within the timeline given.
- Do not approve last‑minute changes to wire instructions sent by email. Treat any change as suspicious until verified by phone.
- Keep your email secure with two‑factor authentication and avoid sending full account numbers by email.
Closing day and after
On closing day, escrow coordinates funding with your lender and sends the deed to the Los Angeles County Recorder for recording. Your ownership begins when recording is confirmed. You will receive your final closing package and, if applicable, your title insurance policy. Update your mailing address, utilities, and insurance right after closing so bills and notices arrive on time.
Get local help
You do not have to navigate escrow alone. A local team can help you set realistic timelines, connect you with reliable lenders and escrow officers, and keep your contract dates on track. Questions about escrow in Whittier? Call or text Andrea De La Rosa for a local lender and escrow introduction.
FAQs
What is escrow in a California home purchase?
- Escrow is a neutral third party that holds funds and documents and follows written instructions from buyer and seller until the deed records and the sale closes.
When is my earnest money at risk in Whittier?
- Your deposit is usually protected while contingencies are active. Once you remove contingencies or miss a contract deadline, your earnest money can be at risk under the agreement.
How long does escrow take for Whittier homes?
- Many financed purchases close in about 30 days, but 21, 30, 35, or 45 days are also common based on lender speed, contingencies, HOA documents, and repairs.
Who pays title insurance and escrow fees in LA County?
- It is negotiable, but local custom often has the seller pay the owner’s title policy and both sides split escrow fees. Buyers usually pay the lender’s title policy and recording fees.
What are Los Angeles County property tax due dates?
- Property taxes are billed in two installments that are due November 1 and February 1. Delinquent dates are December 10 and April 10. Escrow prorates taxes at closing.
What if the appraisal is lower than my purchase price?
- You can renegotiate price, bring extra cash to cover the gap, request a lender review, or cancel if your appraisal or loan contingency allows.
How can I avoid wire fraud during closing?
- Verify wire instructions by calling your escrow officer at a known company number, never approve changes by email alone, and confirm receipt right after you send funds.
