If you are a Buyer whose offer has been accepted, and a fully executed purchase agreement including counter offers have been signed off by the Seller... Congratulations you can expect to open escrow generally on the following business day.
The escrow company that will manage your real estate transaction is in most cases the Seller's choice, and will be named in the Residential Purchase Agreement / RPA contract. You will work (along with your Realtor) with an escrow officer.
The process of "being in escrow" is the timeline of purchasing a home from inception to execution. Once your offer has been accepted, a cash deposit (sometimes referred to as an earnest money) of 3% of the purchase price is delivered by the Buyer to escrow. The escrow period can vary. If a loan is involved, the escrow period will most likely be 30 to 45 days.
The earnest money deposit can essentially be viewed, as the amount of money that is at risk should the Buyer walk away from the deal after contingencies have been removed.
If there is a dispute between the Buyer and Seller, it will generally go to mediation and arbitration (if stipulated by mutual agreement in the RPA, which is generally the norm). Mediation is non-binding, and arbitration is binding.
Your deposit / earnest money outlined above is held in an escrow account and doesn't trade hands until all contingencies have been satisfied and the sale is finalized with the Seller.
Escrow roadmap for homebuyers
- Escrow opens
- Receive opening package from escrow
- Complete due diligence on the house
- Organize and lock-in your loan with your lender
- Negotiations and amendments
- Receive estimated closing statement
- Escrow receives loan documents from your lender
- Loan documents and signed and loan funds (if this is an all cash transaction... remaining funds are sent to escrow)
- Escrow closes
- Begin making memories in your new home
If you have questions about the residential real estate process in Encino California, or surrounding LA County cities, contact me 818.370.6024
5016 Parkway Calabasas, Suite 100
Calabasas CA 91302