Buying or selling in Santa Monica and wondering what actually happens in escrow? You are not alone. Escrow can feel opaque, yet it is the engine that moves your sale from accepted offer to recorded deed. In this guide, you will learn the key steps, documents, timelines, and costs that shape a smooth closing in Santa Monica and greater Los Angeles County. Let’s dive in.
What escrow means in California
Escrow is a neutral third party that follows written instructions from you, the other party, your lender, and your agents. It holds earnest money and other funds, coordinates the title search and recording, calculates prorations, pays off liens, and disburses funds at closing. Escrow coordinates, but it does not give legal advice. If you need legal or tax guidance, consult your attorney or tax professional.
In Los Angeles County, escrow is commonly handled by title and escrow companies. Your agent typically opens escrow after your offer is accepted. The escrow officer then sets the timeline, collects documents, and keeps all parties aligned.
Santa Monica specifics to know
Santa Monica closings record at the Los Angeles County Recorder, and property tax proration follows county procedures. Your escrow and title teams coordinate recording, tax prorations, and documentation with the county.
Santa Monica has many condominium and common interest properties. For those, the seller provides a resale disclosure package under the Davis‑Stirling Act. Review periods and HOA timelines can affect contingencies and closing dates, so build that into your plan.
Transfer or documentary taxes and city or county fees may apply. These vary by jurisdiction and change over time. Your escrow officer will confirm current Los Angeles County and any applicable city transfer charges and show them on your settlement statement.
Escrow timeline in Santa Monica
Typical financed escrows run 30 to 45 days. An all‑cash purchase can close in 7 to 21 days. Your exact timing depends on inspections, HOA documents, loan underwriting, appraisal, and title.
1) Open escrow and deposit earnest money
Once your offer is accepted, escrow is opened and your initial earnest money deposit is due, usually within 1 to 3 days per contract terms. The deposit shows good faith and is held by escrow until closing or cancellation under the contract.
2) Title search and preliminary report
Title orders a search and issues a Preliminary Title Report. You will review easements, liens, and exceptions. Escrow and title work with the seller to clear issues before closing.
3) Seller disclosures delivered
California requires a Transfer Disclosure Statement and other property disclosures. If the home was built before 1978, federal lead‑based paint disclosures apply. For condos, the HOA resale package includes CC&Rs, rules, financials, and meeting minutes for your review.
4) Inspections and negotiation
Your inspection period is set by the contract, often around 7 to 17 days by local custom. You schedule inspections, request repairs or credits, and decide whether to remove your inspection contingency in writing by the deadline.
5) Loan process and appraisal
You complete the loan application while the lender orders an appraisal. If the appraisal comes in low, you can renegotiate, add funds to cover the gap, or cancel under appraisal or loan contingencies if allowed by the contract.
6) HOA document review
If the property is in an HOA, you receive a resale package and review it within the contract timeline. You may have specific rights tied to these documents, so track this period closely.
7) Closing Disclosure and final numbers
Your lender must deliver a Closing Disclosure at least 3 business days before closing. Review final fees, rate, and cash‑to‑close carefully and prepare your funds as instructed by escrow.
8) Signing, funding, and recording
You sign escrow and loan documents, your lender funds, and escrow records the deed and any deed of trust with Los Angeles County. Escrow pays off liens, disburses proceeds, and issues final statements.
9) Post‑closing wrap‑up
Title insurance policies are issued, and you receive closing packets. Keys are typically released after confirmation of recording and funding.
Your key protections and contingencies
Contingencies give you time to verify the property and your financing. Length and terms are negotiated and must be removed in writing by the deadlines.
- Inspection contingency: Inspect the property and request repairs or credits.
- Appraisal contingency: Address low appraisals or cancel per contract.
- Loan contingency: Protects you if financing is not approved.
- Title contingency: Review the Preliminary Title Report and request corrections.
- HOA document review: Review CC&Rs, rules, and financials for condos and common interest properties.
- Home sale contingency: Less common in competitive markets, but sometimes used.
Deposits, title insurance, and prorations
- Earnest money deposit: The amount is negotiated, and in California it often starts around 1 to 3 percent by convention, though there is no legal minimum. Confirm wiring instructions by phone using a verified number to avoid wire fraud.
- Title insurance: Buyers typically receive an owner’s policy that protects ownership, and lenders require a separate lender’s policy. Who pays is negotiable and often follows local custom.
- Prorations and payoffs: Escrow prorates property taxes, HOA dues, and other items through the day of closing, and pays off any existing mortgages or liens.
Closing costs and taxes in LA County
Closing costs vary based on price, loan type, and what you negotiate. Many buyers pay lender fees, the lender’s title policy, appraisal, inspections, recording, and a share of escrow fees. Sellers commonly pay a share of escrow fees, the owner’s title policy in many California markets, real estate commissions, loan payoffs, and any agreed transfer taxes.
Property taxes are prorated at closing. Los Angeles County recording fees and any transfer or documentary taxes are handled by escrow, then shown on your settlement statement. City transfer taxes can apply, and rates change, so ask your escrow officer to confirm what will be due for your Santa Monica address.
Smart ways to keep escrow on track
- Buyers
- Have ID ready and keep loan documents updated.
- Schedule inspections early in your contingency period.
- Confirm wire instructions by phone with escrow.
- Set utilities to transfer for the day after closing.
- Sellers
- Complete disclosures early and provide access for inspections.
- Gather loan payoff and HOA contact information.
- Work with title to clear liens or exceptions as soon as they appear on the Preliminary Title Report.
- Both
- Track contract deadlines and contingency removals in writing.
- Communicate with escrow and your agent promptly if issues arise.
What to expect in your escrow documents
- Purchase Agreement and any addenda
- Preliminary Title Report and title insurance policies
- Seller disclosures, including the Transfer Disclosure Statement and Natural Hazard Disclosure
- HOA resale package for condos and common interest communities
- Loan Estimate early in the process, and a Closing Disclosure delivered at least 3 business days before closing for most consumer mortgages
- Grant Deed or other deed, escrow instructions, and final settlement statements
Work with a local advisor
A clear plan, tight timelines, and proactive communication often make the difference between a smooth 30‑day escrow and a stressful delay. You deserve a partner who anticipates roadblocks and keeps everyone aligned. Vonsalé Realty Group delivers boutique, white‑glove guidance backed by national resources, so you move from accepted offer to recorded deed with confidence.
Ready to talk strategy for your Santa Monica purchase or sale? Connect with Vonsale Jackson to map your escrow timeline and next steps.
FAQs
How long does escrow take in Santa Monica?
- Most financed escrows close in 30 to 45 days, while all‑cash deals can close in about 7 to 21 days depending on inspections, HOA documents, appraisal, underwriting, and title.
What happens to my earnest money if I cancel?
- If your contingencies are still in place and you cancel within the agreed period, you usually receive your deposit back per the contract; once contingencies are removed or expire, the deposit may be at risk if you default.
Who pays for title insurance in Santa Monica?
- It is negotiable; many California sellers pay for the owner’s policy and buyers pay for the lender’s policy, but your purchase agreement controls who pays what.
How are HOA documents handled in a condo sale?
- The seller or HOA delivers a resale package under the Davis‑Stirling Act, and you get a contract‑defined review period that can affect contingency and closing timelines.
When do I get the keys after closing in LA County?
- Keys are typically released after the deed records and funds disburse; coordinate the handoff timing with your agent and escrow.
What if the appraisal comes in low?
- You can renegotiate the price, bring additional funds to close, request a reconsideration through your lender, or cancel under appraisal or loan contingencies if allowed by your contract.
