Time from escrow to closing in California depends on your escrow agent.
When you make a purchase offer on a home, you and the seller will sign a purchase agreement which officially begins the escrow period. Escrow is the time in which certain events or tasks must take place before the deal is closed. How long from escrow to closing in California depends on the closing date you and the seller agree on, as well as the time needed to complete all terms of the agreement.
Escrow
Two of the primary functions of escrow are to allow you enough time to secure a home loan and to give the seller adequate time to find a new home and arrange for the move. The agreed-upon closing date should also account for further contingencies, such as a property inspection and any subsequent repairs, review of the property title or other special circumstances. For instance, the buyer may require the closing date to be contingent (dependent) on the sale of her own home. Your real estate agent can help you with calculating a time limit for each task, to reach a mutually agreeable date of closing. Your lender also plays a role in determining a closing date.
Escrow Account
When you enter the escrow period, a third party -- or escrow agent or company -- creates an escrow account. An escrow account is where certain items are held until the closing date is reached and the purchase of the home is completed. Typical items held in the escrow account include the buyer's down payment, the buyer's money from the bank and the seller's property deed transferring the property to the buyer. The escrow agent also determines any money owed by the seller and the buyer at the time of closing for things like property taxes. The escrow agent follows the escrow instructions as outlined in the purchase agreement created between you and the seller, and he will work to complete the required tasks to reach the closing date on time.
Escrow Fees
Escrow fees are typically included in your closing costs, and payment of the fees is negotiated between you and the seller in the purchase contract. Escrow fees can vary from state to state, county to county and from company to company. Fees also depend on the purchase price, complexity of the transaction and location of the property. In California, one day before the closing of escrow, your escrow agent must have a certified or cashier's check for the total amount of funds needed to close, in accordance with the purchase agreement.
Date of Closing
The typical time from escrow to closing in California is 30 to 60 days, but it may take as long as 90 days. Numerous factors can potentially affect the length of escrow. Closing of escrow will only take place after all terms of the purchase agreement have been met.
Tags: closing date, escrow agent, purchase agreement, from escrow, between seller
