You've accepted an offer on your Inland Empire home. Congratulations — but the sale isn't done yet. Now comes escrow: the 30-to-45-day process where the transaction moves from agreement to closing. If you've never been through it (or it's been a while), escrow can feel like a black box of paperwork and waiting.
Here's a clear, step-by-step timeline of what happens during escrow from the seller's perspective, what you need to do at each stage, and what can go wrong.
What Is Escrow?
Escrow is a neutral third-party process that protects both buyer and seller during a real estate transaction. An escrow company holds the buyer's deposit, coordinates all documents, manages the flow of funds, and ensures that all conditions of the sale are met before the property and money change hands.
In California, the escrow company is selected at the time of offer acceptance — often by mutual agreement between buyer and seller, though the seller typically has a preference. The escrow period usually runs 30–45 days for financed purchases and can be as short as 7–14 days for cash transactions.
The Escrow Timeline: Day by Day
Days 1–3: Opening Escrow
Once both parties sign the purchase agreement, your agent sends the fully executed contract to the escrow company. Escrow opens immediately, and the buyer deposits their earnest money (typically 1–3% of the purchase price) into the escrow account. You'll receive escrow instructions outlining the terms, timeline, and conditions of the sale.
Your action: Review and sign the escrow instructions. Provide your agent with any documents they need — mortgage payoff information, HOA contacts, and warranty information for any transferable warranties.
Days 1–7: Disclosures Delivered
If you haven't already provided your Transfer Disclosure Statement, Natural Hazard Disclosure, Seller Property Questionnaire, and other required disclosures, they need to be delivered now. Best practice is to have these ready before the offer comes in — but the legal requirement is delivery as soon as practicable.
Your action: Ensure all disclosure documents are complete, signed, and delivered to the buyer through your agent. The buyer has 3 days after receiving disclosures to review and potentially cancel.
Days 7–17: Inspection Period
This is the most critical window for sellers. The buyer schedules a home inspection (and potentially specialized inspections for termites, roof, sewer, chimney, or pool). The standard California residential purchase agreement gives the buyer 17 days for inspections and due diligence, though this period is negotiable.
After the inspection, the buyer may request repairs or credits through a Request for Repair (RR) form. This triggers a negotiation:
- You can agree to the repairs or credits
- You can counter with a partial credit or alternative solution
- You can decline, and the buyer decides whether to proceed or cancel
Your action: Keep the home accessible for inspections. Work with your agent to evaluate repair requests — your agent's negotiation skill here can save you thousands. Respond promptly to keep the timeline moving.
Day 17: Contingency Removal
If the buyer is satisfied with inspections and disclosures, they remove their investigation contingency. This is a significant milestone — it means the buyer is committed to the purchase and their earnest money is at risk if they back out for non-contractual reasons.
The buyer may also have a loan contingency (typically removed by day 21) and an appraisal contingency. Until all contingencies are removed, the buyer can cancel with relatively low risk.
Your action: Confirm with your agent that contingency removal forms have been received and documented.
Days 10–30: Appraisal
The buyer's lender orders an appraisal to confirm the home's value supports the loan amount. An appraiser visits the property, evaluates its condition, and compares it to recent comparable sales. The appraisal typically takes 1–2 weeks to complete.
If the appraisal comes in at or above the purchase price, the transaction moves forward. If it comes in low, there are several options: the buyer can make up the difference in cash, you can lower the price, you can meet in the middle, or the buyer can cancel if they have an appraisal contingency.
Your action: Ensure the home is clean and presentable for the appraiser's visit. Your agent should provide the appraiser with a list of comparable sales that support your price.
Days 20–35: Loan Processing
While you wait, the buyer's lender is processing their mortgage. This involves verifying employment, income, assets, and credit. The lender also reviews the title report, appraisal, and property insurance. This is largely a waiting period for sellers, but delays here are the most common cause of closing extensions.
Your action: Stay patient and responsive. If the lender requests additional information about the property — HOA documents, permit records, or insurance claims history — provide it promptly.
Days 30–40: Final Walkthrough and Signing
A few days before closing, the buyer does a final walkthrough to verify the property is in the agreed-upon condition and that any negotiated repairs have been completed. Then both parties sign closing documents — for sellers, this primarily includes the grant deed transferring ownership, closing statements, and tax-related forms.
Your action: Complete any agreed-upon repairs before the walkthrough. Leave the home clean and empty (unless otherwise negotiated). Sign closing documents — mobile notary services can come to you if needed.
Closing Day: Recording and Funding
On closing day, the escrow company submits the grant deed to the county recorder's office. Once recorded, ownership officially transfers. The escrow company then disburses funds — paying off your existing mortgage, covering closing costs, commission, and any other fees, and wiring your net proceeds to your bank account.
Net proceeds typically arrive same-day or next business day via wire transfer.
What Sellers Pay at Closing
Your closing statement (also called a settlement statement) will itemize every charge. Typical seller costs in the IE include:
- Real estate commissions: Listing agent and buyer's agent (the largest cost)
- Escrow fees: Seller's portion, typically $2,000–$3,200
- Title insurance: Buyer's policy (California custom is seller pays), $2,400–$3,800
- Documentary transfer tax: $1.10 per $1,000 of sale price
- Prorated property taxes: From the start of the current tax period through closing
- Any agreed-upon repair credits or concessions
- Mortgage payoff: Remaining balance plus any prepayment penalties (rare)
Common Escrow Delays and How to Avoid Them
Buyer financing issues: The most common cause of delays. Your agent should verify buyer pre-approval quality before accepting an offer — a pre-approval from a reputable local lender is far more reliable than an online pre-qualification.
Low appraisal: Pricing your home correctly from the start minimizes this risk. If your home is priced to current market conditions and supported by comparable sales, appraisal issues are rare.
Inspection surprises: A pre-listing inspection eliminates this risk almost entirely. When buyers see that you've already identified and disclosed conditions, the inspection period becomes a confirmation rather than a negotiation.
Title issues: Liens, boundary disputes, or recording errors can surface during the title search. Work with your agent to order a preliminary title report early so any issues can be resolved before they delay closing.
HOA delays: If your home is in an HOA, ordering the HOA document package early (within the first week of escrow) prevents a common bottleneck. Some HOAs take 10–15 days to produce documents.
The Bottom Line
Escrow is a structured process with clear milestones. Knowing what happens at each stage — and what's expected of you — reduces stress and helps prevent delays. The sellers who close on time are the ones who are prepared, responsive, and working with an agent who manages every detail.
Most of the work happens in the first two weeks (disclosures and inspections) and the last week (signing and closing). In between, your main job is staying available, responsive, and patient while the buyer's financing comes together.
JP Dauber is a licensed California broker (DRE #01499918) with 21+ years of experience managing escrow transactions across the Inland Empire. SoldByJP provides full-service home selling at 1% commission. Get your free home valuation →