Buying a home in San Diego is exciting, but the word “escrow” can make even seasoned buyers pause. You want a smooth path from accepted offer to keys, with no surprises. This guide explains how escrow works in San Diego County, what to expect at each step, and how to keep your timeline on track.
By the end, you’ll understand who does what, common timeframes, key documents, and how to avoid costly delays. Let’s dive in.
What escrow means in California
Escrow is a neutral, third‑party process that holds funds and documents and follows written instructions from you and the seller to complete the transfer of property. In California, the California Association of REALTORS Residential Purchase Agreement with Joint Escrow Instructions becomes the primary roadmap after your offer is accepted. Escrow coordinates the deed, loan documents, payoffs, prorations, and recording, but it does not provide legal or tax advice.
Who is involved in San Diego County
- You and the seller. You each have obligations tied to your contract timelines and contingencies.
- Real estate agents. Your agent negotiates timelines, manages documents and inspections, and often recommends trusted escrow and title partners.
- Escrow officer. Opens escrow, holds your earnest money, prepares settlement statements, coordinates signatures, pays off liens, and records the deed after funding.
- Title company. Conducts the title search and issues title insurance for you and your lender. Title items must be cleared before closing.
- Lender. If you finance, your lender handles underwriting, orders the appraisal, and sends funding instructions to escrow.
- HOA management (if applicable). Provides CC&Rs, financials, and other resale documents for condos and planned developments.
Local note: In San Diego County, both national title underwriters and independent escrow companies operate. Your offer can specify the escrow and title provider.
San Diego escrow timeline at a glance
Most escrows in San Diego County close in 21 to 45 days. Cash deals can wrap up in 7 to 14 days if everyone is ready. Your exact timeline depends on financing, contingency lengths, HOA document delivery, and market conditions.
Step 1: Acceptance and opening escrow
- Day 0 is the date your offer is accepted by the seller.
- Your agent sends the agreement to escrow and title.
- You deliver your earnest money deposit by wire or check per instructions. This usually happens within 1 to 3 business days of acceptance.
Step 2: Title work and setup
- Title starts the search and issues a preliminary report.
- Escrow requests seller payoff statements, HOA contacts, and required forms.
Step 3: Buyer inspections and contingencies
- Your investigation period begins at acceptance or upon receiving seller disclosures, depending on your contract.
- Common timeframes in San Diego range from 10 to 21 days, with variations based on competitiveness.
- You typically complete a general home inspection, plus any specialist inspections like roof, HVAC, pool, foundation, sewer scope, or a wood‑destroying pest report.
Step 4: Loan processing and appraisal
- You lock in your loan application, respond quickly to lender requests, and your lender orders the appraisal.
- Conventional loans commonly take about 3 to 6 weeks from application to funding. Timelines shorten if underwriting is fast or you are paying cash.
Step 5: Negotiations and contingency removal
- If inspections uncover issues, you can request repairs or credits. The seller may agree, counter, or decline.
- When you are satisfied with inspections, appraisal, loan, title, and HOA review, you remove contingencies per your contract.
Step 6: Title clearance and HOA review
- Title items such as liens or judgments are cleared with the seller’s help.
- For condos or planned developments, HOA resale documents are ordered and reviewed. Statutory timelines apply, and you may have cancellation rights if data is late or problematic.
Step 7: Signing, funding, and recording
- Escrow prepares your Closing Disclosure and settlement statements.
- You sign loan documents and escrow instructions. The seller signs the deed and payoffs.
- The lender funds to escrow, escrow records the deed with the San Diego County Recorder, and keys are released once funds are disbursed.
- “Close of escrow” occurs on the recording date, which is when legal title transfers.
Contingencies and inspections in San Diego
Contingencies give you clear checkpoints. You can move forward, negotiate, or cancel based on results within the agreed period.
Loan contingency
This protects you if your lender cannot approve your loan within the timeframe. Provide documents quickly to keep underwriting on schedule. In competitive situations, buyers often negotiate shorter periods.
Appraisal contingency
If the appraisal comes in lower than your purchase price, you can renegotiate, bring additional funds, or cancel, depending on your contract language and any appraisal gap terms.
Inspection contingency
This covers general and specialist inspections and lets you object to material defects. You can request repairs, ask for credits, or cancel during the contingency period.
Wood‑destroying pest inspection
A WDO report is common in San Diego. If conditions are found, you and the seller negotiate treatment or credits per the contract.
Title and HOA review
You review the preliminary title report and HOA documents. You can request resolution of title exceptions or exercise cancellation rights tied to HOA disclosures and timelines for common‑interest developments.
Seller disclosures you should expect
California requires several disclosures that help you understand a property’s condition and risks. You will typically receive:
- Transfer Disclosure Statement with known material facts.
- Natural Hazard Disclosure detailing features like flood, seismic, or fire hazard zones.
- Megan’s Law notice, lead‑based paint disclosures for homes built before 1978, and any known code issues or required disclosures about deaths on the property.
In coastal and North County areas, pay close attention to local hazards such as erosion, bluff stability, and wildfire risk. If disclosures arrive late, your investigation period may adjust per the contract.
Repairs: credits or work before closing
After inspections, you can submit a repair request. Sellers may complete selected repairs with licensed contractors, offer a credit, or decline. Many San Diego buyers and sellers prefer credits to keep the timeline moving. For significant work, confirm permits were obtained and closed out.
Money, title, and closing details
Earnest money deposits
- Purpose: shows good faith and is held in escrow per your written instructions.
- Amount: often 1 to 3 percent of the purchase price, though the amount is negotiable.
- Handling: if you cancel within contingency periods, you typically receive it back under the contract terms. After removal, different rules apply. Follow your signed agreement.
Who pays which closing costs
Customs vary and your contract controls. In many California transactions, buyers and sellers split escrow fees. Sellers often pay the owner’s title policy and buyers pay the lender’s policy, but this is negotiable and differs by county. Transfer taxes are set by county or city and payment is negotiated in the offer. For condos and planned developments, the seller commonly pays for the HOA resale packet, though some related fees can be split or assigned differently.
Title insurance and clearance
Title searches surface liens, easements, and taxes that affect ownership. In San Diego, unresolved mechanic’s liens or older easements sometimes appear. Escrow and title work together to clear items before closing or obtain your acceptance of allowed exceptions.
Recording and getting the keys
Escrow records your deed with the San Diego County Recorder. Recording is the legal transfer of title. Keys and possession are typically released after recording and funding. Confirm possession terms in your contract, especially if there is early occupancy or a post‑closing agreement.
What can extend your timeline
- Loan type and underwriting conditions, especially FHA or VA.
- HOA resale document delivery for condos or planned developments.
- Appraisal delays or value gaps.
- Unpermitted work that requires additional review for lending or insurance.
Local pitfalls to avoid
- Missing or late disclosures. Confirm you received all required disclosures right away so your investigation clock is clear.
- Underestimating HOA timelines. Build extra days into condo offers for HOA documents.
- Appraisal shortfalls. Know your options early if you are offering above recent comparable sales.
- Wire fraud. Always verify wiring instructions by calling your escrow officer using a trusted phone number. Never rely on emailed instructions alone.
- Unpermitted work. Verify permits and final inspections for major past improvements.
Buyer checklist
- Confirm your earnest money amount and how you will deliver it. Verify escrow received it.
- Schedule a general home inspection and any specialist inspections you need.
- Order a wood‑destroying pest report and understand how any findings will be handled.
- Send every lender document request promptly to keep underwriting on track.
- Review your preliminary title report and HOA documents as soon as they arrive.
- Plan your final walkthrough within 48 hours of closing and confirm agreed repairs.
- Call escrow to verify wiring details before sending any funds.
- Schedule movers only after escrow confirms recording and keys are released.
Seller checklist
- Complete the Transfer Disclosure Statement and provide all known material facts early.
- Provide access for buyer inspections and respond to repair requests per your contract.
- Share HOA contact information and authorize the resale packet promptly if applicable.
- Request mortgage payoff statements and keep taxes and liens current.
- Confirm who pays which fees in writing and sign escrow and deed documents quickly.
- If you need extra time after closing, document a post‑closing occupancy agreement.
Helpful San Diego resources
Ready to navigate escrow with confidence?
You deserve a calm, well‑managed path to the keys. As lifelong North County locals, our team pairs neighborhood insight with steady transaction management so you know what to expect at every step. If you are planning a purchase or prepping a sale, connect with Booth Properties to put a clear plan in place.
FAQs
How long does escrow take in San Diego County?
- Most escrows close in about 21 to 45 days. Cash purchases can close in 7 to 14 days if all parties are ready and documents are delivered quickly.
How much earnest money is typical in San Diego?
- Earnest money deposits are negotiable, often 1 to 3 percent of the purchase price. Your contract controls how the deposit is handled.
What happens if the appraisal is lower than the price?
- You can renegotiate price or credits, bring additional funds, or cancel depending on your contract and any appraisal contingency or gap terms.
When do you get the keys in California escrow?
- Keys are usually released after funds are disbursed and the deed records with the County Recorder. That recording date is your close of escrow.
What if HOA documents are delayed for a condo purchase?
- HOA resale packets can add days to your timeline. Civil Code rules give you review and possible cancellation rights tied to delivery, so build this time into your offer.
