Ever hear “we’re in escrow” and wonder what that really means in Walnut Creek? If you are buying in the East Bay, the escrow period is where the details get handled, funds are protected, and your ownership becomes official. In this guide, you will learn the full Walnut Creek escrow timeline, who does what, how deposits and wires work, what it costs to close, and local tips to avoid delays. Let’s dive in.
What escrow is in California
Escrow is a neutral third party that holds funds and documents, follows the purchase contract, and coordinates closing once every condition is met. In California, the escrow company is separate from the title company, which provides title insurance and the preliminary title report. In Walnut Creek and across Contra Costa County, escrow follows state law and local practices set by county and city agencies.
If you want a plain-language overview of the process, you can review a national title company’s explanation of how escrow and closing work in California through First American’s consumer resources. Your escrow officer and title representative will also explain county-specific steps and costs.
Typical escrow timeline in Walnut Creek
Escrow length varies with the market and your financing. A common timeframe for financed purchases is about 30 days. Some escrows close in 17 days, and some need 45 days or more if issues arise. Here is the step-by-step flow you can expect.
Days 0 to 3: Offer accepted and open escrow
- You and the seller sign a purchase agreement, often based on the California Association of REALTORS standard forms. You can learn more about these forms through CAR’s website.
- You deliver your Earnest Money Deposit to the escrow company per the contract timeline, commonly within 1 to 3 business days.
- Escrow opens the file, assigns an escrow number, and begins coordinating next steps.
Days 1 to 7: Early escrow tasks
- Your escrow officer sends an escrow instruction package for signatures and collects basic information from both sides.
- The title company orders a preliminary title report and checks for liens, easements, or other exceptions.
- Your agent orders inspections. General home, roof, HVAC, sewer scope, and a wood-destroying pest inspection are common in the Bay Area.
- If the home is in an HOA, the seller or escrow obtains the HOA resale documents for your review.
- Inspection contingency periods are negotiated in your offer. In our region, 7 to 17 days is typical, but this is contract-specific.
Days 7 to 21: Loan, appraisal, and contingencies
- If you are financing, your lender orders an appraisal and completes underwriting. Appraisal timing often drives the schedule.
- You review inspection reports and decide whether to request repairs, ask for a credit, or remove your inspection contingency by the deadline.
- The title and escrow teams work with the seller to clear title exceptions, such as lien payoffs.
- Loan and appraisal contingencies commonly run 17 to 21 days, but your offer controls the dates.
Days 21 to 30: Final steps before funding
- Repairs and credits are finalized, your lender issues final approval, and you complete a final walkthrough within 24 to 72 hours before closing.
- Escrow prepares your closing statement and your lender provides the Closing Disclosure for financed purchases. You will see prorations for property taxes, HOA dues, and utilities.
- You sign loan documents and wire your closing funds using the escrow company’s verified wire instructions.
Funding, recording, and getting the keys
- Your lender wires loan funds to escrow. Once funds and signatures are confirmed, escrow authorizes recording.
- The deed and any mortgage documents are recorded with the Contra Costa County Recorder. You can explore county recording and property tax resources on the Contra Costa County official site.
- After recording, escrow disburses funds to the seller and other parties. Keys are released per the possession terms in your contract.
Who does what in escrow
Your agent
Your agent helps you select inspections, manage contingency timelines, and coordinate your appraisal and walkthrough. They present your repair or credit requests and help you weigh tradeoffs. They also keep your lender, title, and escrow teams aligned.
The seller’s agent
The seller’s agent helps the seller complete required disclosures and gather HOA or permit documents. They coordinate access for inspections and negotiate inspection items with your agent. They also help organize keys and final transfer details.
The escrow officer
Escrow is a neutral party that holds your deposit and closing funds in a trust account. The officer prepares escrow instructions, coordinates signings, and disburses funds at closing. Escrow also submits documents for recording once all conditions are met.
The title company
Title orders and reviews the preliminary title report, identifies exceptions, and coordinates lien payoffs or releases. At closing, title issues the owner’s and lender’s title insurance policies.
Your lender
The lender underwrites your loan, orders the appraisal, and provides final approval. They fund the loan into escrow when all conditions are satisfied.
County and city agencies
The Contra Costa County Recorder handles deed recording and the Tax Collector manages property tax billing and prorations. The City of Walnut Creek handles permits and local disclosures. You can explore city services and permit information on the City of Walnut Creek website.
Deposits, wires, and protecting your money
Your Earnest Money Deposit is placed in escrow’s trust account according to your contract. Escrow companies in California are licensed and must follow strict trust accounting rules. If you want to confirm escrow licensing or learn about consumer protections, the California Department of Financial Protection and Innovation provides guidance.
Wire fraud prevention is a key part of a safe closing. Follow these steps:
- Only use wiring instructions that come directly from escrow, then call a known phone number to verify them before sending any funds.
- Do not rely on email-only instructions or links. Confirm verbally with your escrow officer.
- Carefully check account names and numbers, and send your wire early enough to confirm receipt before your signing appointment.
Walnut Creek specifics buyers ask about
- Permits and unpermitted work. Many older East Bay homes have past alterations. Your agent can help you request a permit history search with the city. You can start by reviewing the City of Walnut Creek’s site for building and permit resources.
- HOA documents. Walnut Creek includes many condos and planned communities. Budget, rules, and upcoming projects in the HOA can affect your approval and costs, so review these early.
- Property taxes and supplemental assessments. Property taxes are prorated at closing. When ownership changes, California may issue supplemental tax bills, so plan for that. You can explore tax resources through the Contra Costa County site.
- Sewer lateral and municipal requirements. Some Bay Area cities require sewer lateral inspections or repairs at sale. Confirm current Walnut Creek requirements with your agent, escrow, or the city.
- Wildfire risk and insurance. Hillside and open space areas may have wildfire disclosures and defensible space considerations. Review related disclosures and speak with your insurance provider early in escrow.
What it costs to close
Your Closing Disclosure and escrow settlement statement will show:
- Loan fees and lender charges, if you are financing.
- Title insurance premiums for the owner’s policy and the lender’s policy. The lender’s policy is required if you have a loan. The owner’s policy is optional but often recommended for protection.
- Escrow fees from the escrow company. In the East Bay, buyers and sellers often split escrow fees, but everything is negotiable.
- Recording fees and any transfer taxes. Contra Costa County recording fees are paid at closing, and transfer taxes may apply based on the contract and local rules. Review current items with escrow or check county resources at the Contra Costa County website.
- Prorations for property taxes, HOA dues, and utilities.
- Your homeowners insurance premium, commonly the first year paid in advance.
Who pays what varies by contract and local custom. Your escrow officer can give you a detailed estimate once your file is open.
Common bumps and how escrow solves them
- Low appraisal. You and the seller can negotiate a price change, you can bring additional cash, or you may cancel within your appraisal contingency.
- Outstanding liens or judgments. Title identifies these and escrow coordinates payoff demands and releases before recording.
- Missing seller disclosures. Escrow cannot close without required documentation. Your agents will work to cure issues or apply your contract remedies.
- Wire or funding delays. Always verify wires by phone and send funds early. If funding delays happen, escrow may move recording to the next business day.
- Repair disputes. You can negotiate credits or extend escrow to complete work. Unresolved items follow the remedies outlined in your contract.
Buyer escrow checklist
After your offer is accepted, use this quick checklist to stay on track:
- Confirm the escrow company and deliver your Earnest Money Deposit per the contract timeline.
- Order and attend inspections, such as general home, pest, roof, HVAC, and sewer scope if needed.
- Send lender documents promptly and track appraisal and underwriting milestones with your agent.
- Review seller disclosures early, including the Transfer Disclosure Statement, Natural Hazard Disclosure, permit history, and any HOA documents.
- Negotiate repairs or credits and document all agreements through your agent and escrow.
- Confirm wiring instructions directly with escrow by phone and follow their verification procedures when sending funds.
- Schedule your final walkthrough within the contract window to confirm condition and repairs.
- Sign closing and loan documents, and confirm the expected recording and possession date with escrow.
- Keep copies of your settlement statement and title policy for your records.
Close with confidence in Walnut Creek
Escrow is designed to protect you while the details come together. When you follow the timeline, review your disclosures, and verify your wires, you set yourself up for a smooth recording day. If you want a deeper dive on forms and statewide rules, you can browse CAR’s resources or the state’s legal information portal at California Legislative Information. For broader consumer licensing references, the California Department of Real Estate is also helpful.
When you are ready to buy in Walnut Creek or nearby Lamorinda communities, you deserve a team that can manage escrow details and the nuts and bolts of property condition, permits, and repairs. If you want local guidance from offer to keys, connect with Woehrle Real Estate & Development. What’s My Home Worth?
FAQs
What does “escrow” mean when buying a Walnut Creek home?
- Escrow is a neutral company that holds your deposit and closing funds, coordinates documents, and records the deed once all contract conditions are met.
How long does escrow usually take in Contra Costa County?
- Many financed purchases close in about 30 days, although some finish in 17 days and others need 45 days or more based on financing, title, or negotiations.
Where is my Earnest Money Deposit held and is it safe?
- Your deposit is held in the escrow company’s trust account under state rules, and funds are released only according to signed escrow instructions and the contract.
Who orders the appraisal and inspections during escrow?
- Your lender orders the appraisal and your agent helps you order inspections like general home and pest; you review results and decide on repairs or credits.
How are property taxes handled at closing in Walnut Creek?
- Property taxes are prorated on your closing statement, and you may receive supplemental tax bills after closing if your assessed value changes.
When do I get the keys to my new home?
- Keys are typically released after the deed records with the county recorder and according to the possession date in your purchase contract.
