Buying on the Peninsula and wondering what actually happens between an accepted offer and getting the keys? You are not alone. Escrow in California has many moving parts, and San Mateo County adds a few local twists. In this guide, you will learn how escrow works, who does what, a realistic timeline, and what to watch for so you can close with confidence. Let’s dive in.
Escrow basics in California
Escrow is a neutral process that holds your funds and important documents while a third party coordinates the steps needed to transfer ownership. The escrow holder follows written instructions from you and the seller, then releases money and records the deed only when all conditions are satisfied. This keeps the process fair, transparent, and predictable.
In most Peninsula deals, a title company acts as the escrow holder. Your purchase contract and standard California forms set the rules, deadlines, and contingency periods. The seller must also provide required disclosures, and escrow helps track who has signed what and when.
Who does what in escrow
- Escrow holder or title company: Opens the file, holds your deposit, orders a preliminary title report, prepares closing statements, coordinates loan payoffs, and handles recording and disbursement.
- Buyer and seller: Provide signed instructions and documents, meet contingency deadlines, and deliver funds.
- Lender: Approves your loan, orders the appraisal, and funds only after all conditions are met.
- Real estate agents: Negotiate terms, track deadlines, and guide you through forms, inspections, and contingency removal.
- San Mateo County Recorder: Records the deed and any liens. Recording completes the public transfer and triggers key steps like releasing keys.
Key documents you will see early
- Open escrow letter with your file number and instructions
- Preliminary title report with exceptions and recorded matters
- Escrow instructions and your settlement statement
- Seller disclosures, including Transfer Disclosure Statement and Natural Hazard Disclosure
- HOA documents if you are buying a condo or townhouse
Timeline in San Mateo County
Exact timing depends on your contract and whether you are using a loan, but the Peninsula often moves quickly. Expect shorter contingency periods in competitive situations.
High-level timing ranges
- Open escrow: Day 0 to 1 after acceptance
- Earnest money deposit: Within 1 to 3 business days, as your contract states
- Escrow length: About 21 to 30 days for financed purchases; 14 to 17 days or less for clean cash deals; up to 30 to 45 days if there are delays
- Inspection period: Often 7 to 10 days locally, sometimes up to 17
- Loan and appraisal: Commonly 17 to 21 days
- HOA review: Usually 3 to 10 days after full HOA packet is delivered
- Final walkthrough: 1 to 3 days before closing
- Signing and funding: 1 to 3 days before recording
Practical milestone checklist
- Days 0 to 3: Open escrow, wire your deposit, receive disclosures and the preliminary title report, schedule inspections.
- Days 3 to 14: Complete inspections, request repairs if allowed, lender orders appraisal and processes your loan.
- Days 14 to 21: Remove inspection and loan contingencies per contract if satisfied, review HOA docs, address title issues.
- Days 21 to close: Lender clears you to close, you sign final closing documents, wire funds, escrow records the deed, and you receive keys after recording.
Earnest money and contingencies
Contingencies protect you while you confirm the property’s condition, title, and financing. Your earnest money deposit (EMD) shows good faith and becomes part of your funds at closing.
Earnest money basics
- Purpose: Your EMD signals commitment and is held in the escrow account.
- Amount and timing: Set by the contract. On the Peninsula, deposits often represent a few percent of the price, with larger amounts in multiple-offer situations.
- Refundability: If you cancel within valid contingency timelines, the deposit is usually returned per the contract. Once contingencies are removed, your deposit may become non-refundable except as the contract allows.
Common contingency types and timing
- Inspection: Lets you inspect and negotiate or cancel within the agreed period. Local windows often run 7 to 17 days.
- Pest or termite: Common in California and may result in repairs or credits.
- Loan: Protects you if financing is not approved within the timeline.
- Appraisal: Often tied to the loan. If the appraisal is low, you may renegotiate, bring more cash, or cancel if your contingency is still valid.
- Title: You review the preliminary title report for liens or restrictions. Outstanding liens must be cleared before closing.
- HOA: For condo or townhouse purchases, you review CC&Rs, bylaws, financials, and rules within a set review period.
Disclosures and title specifics
Seller disclosures and title review are core parts of your decision. Escrow coordinates delivery, signatures, and any follow-up.
Required disclosures
- Transfer Disclosure Statement: The seller must disclose known material issues with the property.
- Natural Hazard Disclosure: Identifies mapped hazards, including flood, seismic, or fire zones.
- Local notices: Some cities or the county require specific notices or utility information. Your escrow package will identify these.
- Lead-based paint disclosure: Required for homes built before 1978.
Title insurance and reports
- Preliminary title report: Delivered early, it lists easements, liens, and other recorded matters. You and your lender review it and raise any objections.
- Title insurance: A lender’s policy is typically paid by the buyer. The owner’s policy is negotiable and may follow local custom. Your contract states who pays what.
- Clearing title: Any HOA lien, unpaid assessment, or recorded notice of default must be resolved before closing.
San Mateo County local factors
The Peninsula’s high demand shapes how escrow unfolds. Being prepared helps you compete without taking unnecessary risks.
Market dynamics to expect
- Shorter contingency periods are common in multiple-offer situations.
- Larger deposits and faster closes are more likely on clean offers.
- Cash or low-contingency deals often target 14 to 17 day closings if everything is in order.
Recording and transfer taxes
- Recording: The San Mateo County Recorder completes the public transfer when your deed is recorded. Keys are typically released after funding and recording.
- Transfer taxes: The county and some cities charge documentary transfer taxes. Rates and who pays can vary by city. Confirm current rates for the property’s city before you write an offer.
- Property tax reassessment: A sale usually triggers reassessment under state rules. Escrow will prorate current taxes based on the county’s fiscal calendar and your contract.
HOA and condo considerations
- HOA packets: Expect CC&Rs, bylaws, budgets, meeting minutes, and an estoppel or statement of dues. Review timelines are set in the contract.
- Fees and timing: HOAs charge document and transfer fees and have standard turnaround times that can affect your closing schedule.
Recommended local inspections
- Sewer lateral and scope, especially for older properties
- Foundation or structural checks for older homes or sloped lots
- Roof and chimney
- Termite or wood-destroying organism
- Specialist follow-ups if initial inspections flag issues
E-signing and remote options
- Electronic signatures are common. Some closings use hybrid or remote signing, depending on lender and title company policies.
- E-recording and remote notarization rules can change. Confirm current options with your escrow team and the county recorder early in the process.
Costs, fees, and prorations
Escrow will provide a settlement statement showing all costs and credits. Review this document carefully before you sign.
- Title and escrow fees: Paid according to your contract and local custom.
- Recording and transfer taxes: Based on the property’s location and the city’s rules if applicable.
- Prorations: Property taxes and HOA dues are prorated to reflect when you and the seller each own the home during the billing period.
- Lender costs: Your lender discloses loan-related fees and prepaid items, which escrow includes in your final numbers.
Practical buyer tips
- Set calendar reminders for all contingency deadlines and signing dates.
- Wire funds using only the instructions from escrow, and verify by calling the known phone number before sending money.
- Choose inspectors and a lender who know San Mateo County. Local knowledge helps avoid delays.
- Confirm whether the property has special taxes or assessments. Review parcel tax lines in your preliminary title or escrow statements.
- Ask your agent to review estimated transfer taxes, title fees, and who pays which items before you submit an offer.
How to avoid delays
- Get your lender documents in early and respond quickly to any conditions.
- Schedule inspections as soon as escrow opens.
- Review HOA documents promptly and ask questions right away.
- Resolve title exceptions and payoff questions early. If something needs to be cleared, start immediately.
- Plan for your final signing and wire a day or two before closing, as instructed by escrow and your lender.
What happens on closing day
You will complete your final signing, your lender will fund, and escrow will send the deed to the San Mateo County Recorder. After the deed records, escrow releases funds to the seller and confirms that you can receive keys. Recording and key release can happen the same day, depending on timing.
Ready to map out your escrow plan for a home in San Mateo, Burlingame, Millbrae, or nearby neighborhoods? Reach out to Daniel Choi to walk through your timelines, costs, and strategy.
FAQs
What is escrow in San Mateo County real estate?
- Escrow is a neutral process where a title or escrow company holds funds and documents, follows written instructions, and records the deed once all conditions are met.
How long does escrow usually take for Peninsula buyers?
- Many financed purchases close in about 21 to 30 days, while clean cash deals can close in 14 to 17 days if everything is ready.
When is my earnest money deposit due after offer acceptance?
- Most contracts call for the deposit within 1 to 3 business days after acceptance, and the money is held in the escrow account.
Are deposits refundable if I cancel during contingencies?
- If you cancel within valid contingency periods, your deposit is typically returned per the contract; after removing contingencies, it may be non-refundable.
What inspections are common for San Mateo County homes?
- General home, termite, sewer lateral, roof, chimney, and, as needed, foundation or structural inspections for older or sloped properties.
What happens if the appraisal comes in below the purchase price?
- You may renegotiate, bring additional cash, or cancel if your appraisal or loan contingency is still in place and your contract allows it.
When do I get my keys on the Peninsula?
- Keys are usually released after funding and recording with the San Mateo County Recorder, often the same day as closing.
