Buying or selling in Orinda and feeling unsure about escrow? You’re not alone. Escrow can sound mysterious, especially the first time you hear about earnest money, contingency removals, and recording. The good news: when you understand the steps and who does what, the process feels clear and manageable. In this guide, you’ll learn what escrow is, how it works in California, and what to expect in a typical Orinda closing. Let’s dive in.
Escrow basics in California
What escrow is
Escrow is a neutral third party that holds money and documents while both sides complete the terms of the contract. The escrow holder follows written instructions from the buyer and seller, then releases funds and records the deed once all conditions are met. Escrow does not represent either party and does not give legal advice unless separately retained.
Why escrow matters
Most of the money and paperwork in a home sale runs through escrow. That includes earnest money, loan funds, title insurance, payoff of existing liens, deed signing, recording, and final disbursement. In California, escrow companies and officers are licensed and regulated, and title work and recording happen alongside escrow to complete the legal transfer of the property.
Who is involved
Buyer
- Deposits earnest money into escrow.
- Completes inspections and reviews disclosures.
- Works through loan approval, then brings in final funds and valid ID for signing.
Seller
- Provides disclosures and access for inspections.
- Clears title issues as needed and signs the deed and payoff authorizations.
- Coordinates with escrow to confirm payoff amounts and deliver keys after recording.
Escrow holder
- Opens escrow, holds funds, and prepares settlement statements.
- Coordinates signing, obtains payoff figures, and gives recording instructions once conditions are met.
- Acts only on mutual written instructions from buyer and seller.
Title company
- Searches title and issues the preliminary title report.
- Works to clear defects when possible and issues title insurance policies at closing.
Lender (if any)
- Orders the appraisal and sets loan conditions.
- Requires homeowner’s insurance and clear title before funding.
Real estate agents
- Keep communication moving and help you understand deadlines and norms.
- Coordinate inspections, documents, and timeline milestones.
Other participants
- Inspectors for home, pest, roof, chimney, septic, and more as needed.
- HOA management for document delivery if the property is in an association.
- County recorder’s office for the deed and related documents.
Orinda escrow timeline
Typical steps
Escrow timing is negotiated in your purchase contract. In many East Bay transactions, escrows range from about 17 to 30 days. Competitive offers sometimes use shorter timelines when all parties are ready to move quickly.
- Day 0 to 1: Offer accepted and escrow is opened. Buyer deposits earnest money per the contract.
- Day 1 to about 17–30: Title search and preliminary title report are issued. Seller disclosures are delivered. Buyer orders inspections, applies for the loan, and reviews HOA documents if applicable.
- Roughly Day 10 to 25: Any agreed repairs or credits are finalized. Lender moves toward clear-to-close. Title items and liens are cleared.
- Around Day 15 to 30+: Buyer and seller sign final documents. Buyer wires closing funds and lender wires loan proceeds.
- After funding: Escrow instructs title to record the deed. County recording occurs, funds are disbursed to the seller, and escrow closes.
Local timing factors
The exact pace depends on lender schedules, inspection availability, and the responsiveness of all parties. HOA document delivery can add time if the property is in an association. County recording times vary with workload, but urban counties often process promptly. Being ready with documents and quick responses helps keep your Orinda escrow on track.
Earnest money in Orinda
Earnest money is the buyer’s good faith deposit held in escrow while the contract moves forward. The amount is negotiated in the contract and commonly runs about 1 to 3 percent of the purchase price in many markets, though it can vary. For financed purchases, the deposit is placed into an escrow trust account.
If you cancel within a valid, active contingency period allowed by the contract, your deposit is typically refundable. If you remove contingencies and then default, the seller may be entitled to keep your deposit depending on the contract and legal remedies. Escrow follows the written purchase agreement and escrow instructions. Disputes can move to mediation, arbitration if specified, or court.
Wire fraud is a real risk. Always confirm wiring instructions directly with your known escrow contact by phone. Be suspicious of last-minute changes, and never rely only on email details.
Contingencies to know
Contingencies outline your rights to investigate and cancel if needed within set time frames. California contracts set clear deadlines and require formal written removal.
- Inspection contingency: Lets you investigate the property and negotiate repairs or credits within a timeline.
- Loan contingency: Protects you if you cannot obtain financing under the contract terms by the deadline.
- Appraisal contingency: Addresses a low appraisal. You can renegotiate, bring in more funds, or cancel depending on your terms.
- Title contingency: Allows review of title exceptions and requires clearance of defects before closing.
- Disclosures and documents: Gives you time to review seller disclosures and HOA packets if applicable, with rights defined by contract or statute.
When you sign a contingency removal, your rights change. Know the tradeoffs before removing or waiving anything.
Title and recording
Title work starts early. The preliminary title report shows liens, easements, and recorded restrictions. Some items are routine, like utility easements, while others may need to be cleared before closing.
Two types of title insurance are typically issued at closing. The owner’s policy protects your ownership against covered past title issues. The lender’s policy protects the lender’s interest. Who pays for each policy varies by local custom and by what is negotiated in your contract. Recording happens after funding and makes the transfer public, which finalizes the sale.
Closing costs overview
Closing costs include lender fees, title and escrow charges, government fees, and prorations. Many items are negotiable, and local customs influence who pays what.
Typical buyer costs can include:
- Lender fees, appraisal, credit report, and underwriting if you are financing.
- Title insurer’s lender policy in many cases.
- A share of escrow and recording fees depending on custom or contract.
- Prorated property taxes, prepaid interest, and a homeowner’s insurance binder.
Typical seller costs can include:
- Real estate commissions.
- Owner’s title insurance policy, depending on negotiation and local custom.
- Payoff of existing mortgages and liens.
- Seller’s share of escrow fees and prorated property taxes.
Always review your draft settlement statement from escrow and ask questions early. That review helps avoid last-minute surprises.
Local Orinda considerations
Orinda has hilly terrain and many established homes. Buyers often order specialized inspections for foundations, slope stability, drainage, and seismic retrofitting where appropriate. California requires a Natural Hazard Disclosure report. Many Orinda properties are in earthquake zones, and buyers commonly consider earthquake insurance even though it is not required by escrow.
If the home is part of an HOA, plan for time to receive and review HOA documents. HOA packets and covenants, conditions, and restrictions can impact timelines. Local property taxes are prorated at closing, and some neighborhoods may include supplemental assessments or special taxes. Review your disclosures for details on any assessments.
Avoid common delays
A few issues come up frequently. Planning ahead can keep you on schedule.
- Lender processing: Start your loan application early and respond promptly to underwriter requests.
- Appraisal gap: If the appraisal is low, be prepared to negotiate or adjust funds.
- Title defects: Order and review the preliminary title report early to spot liens or judgments.
- HOA documents: Request HOA packets as soon as possible and confirm delivery timelines.
- Wiring concerns: Verify instructions by phone with your escrow officer and avoid emailed changes.
- Deadlines: Track contingency dates closely. Extensions must be in writing.
Quick checklists
Buyer checklist
- Proof of funds for your down payment and closing costs.
- Valid photo ID for signing.
- Loan application completed and responses to lender questions on time.
- Inspections scheduled quickly and review of seller disclosures.
- Homeowner’s insurance binder set for the closing date.
- Verified wiring instructions and plan for delivering good funds.
Seller checklist
- Complete all required disclosures, including Natural Hazard Disclosure and others that apply.
- Order payoff demand statements from your current lender early.
- Provide HOA contacts and documents if the property is in an association.
- Plan for prompt signing so recording is not delayed.
Ready for your Orinda move?
If you want calm, step-by-step guidance through escrow, you’re not asking for too much. You deserve a clear plan, steady communication, and local insight that keeps timelines on track. Reach out to Unknown Company to talk through your goals and Work With Gillian.
FAQs
Who holds earnest money in Orinda escrows?
- The escrow company holds your earnest money in a trust account until the contract conditions are satisfied.
Can I lose my earnest money deposit?
- Possibly. If you remove contingencies and then default, the seller may be entitled to keep it under the contract. If you cancel within an active contingency period that allows cancellation, it is typically refundable.
How long does escrow take in the East Bay?
- Many Orinda and East Bay escrows run about 17 to 30 days, though shorter or longer timelines can be negotiated based on circumstances.
Who pays closing costs in Contra Costa?
- Some fees follow local custom, and many are negotiable. Your purchase contract will specify allocations for title policies, escrow, and other items.
What causes most escrow delays locally?
- Lender underwriting, appraisal issues, title defects, and HOA document delivery are common causes. Early preparation and quick responses help prevent delays.
Is escrow the same as title insurance?
- No. Escrow facilitates the closing process, while title insurance protects the buyer’s ownership and the lender’s lien against covered past title defects.
