Buying or selling in Long Beach and feeling unsure about escrow? You’re not alone. Escrow can feel like a black box when you’re balancing inspections, loan steps, and deadlines. This guide breaks down each stage in plain English so you know what happens, when it happens, and how to keep your closing on track. Let’s dive in.
Escrow basics in California
Escrow is a neutral third party that holds funds and documents while you and the other side complete contract conditions. The escrow officer follows written instructions, coordinates with title and your lender, and releases funds when everything is satisfied. In California, most residential deals use standard forms from the California Association of REALTORS, and sellers must provide required disclosures. Your lender must also provide loan disclosures under federal rules.
In Long Beach, your escrow closes when the deed is recorded with Los Angeles County. Local market conditions can affect how much earnest money you put down and how fast deadlines move, especially when competition is high.
Who does what
- You: apply for the loan, order inspections, review disclosures, remove contingencies, and sign closing documents.
- Seller: delivers disclosures, addresses title issues, and signs closing documents.
- Buyer’s and listing agents: negotiate terms, coordinate inspections and repairs, and track deadlines.
- Escrow officer: holds funds, prepares settlement statements, follows instructions, and handles disbursement and recording.
- Title company: runs the title search and issues title insurance.
- Lender: underwrites the loan, orders the appraisal, and funds at closing.
- Inspectors and appraisers: produce reports that guide your decisions.
Long Beach escrow timeline
Timelines vary by lender, property, and negotiations, but here is the typical flow you can expect.
1) Offer accepted
You and the seller sign the purchase agreement. It sets price, earnest money, deadlines, and the escrow holder. The choice of escrow company is negotiable and often guided by your agent’s recommendation.
2) Open escrow and deposit
You send your earnest money by wire, cashier’s check, or check per the contract. Escrow receipts the funds and holds them in a neutral account. The initial deposit is usually due within a few business days of acceptance.
3) Loan application and disclosures
If you finance, apply right away. Your lender provides a Loan Estimate within a few business days and orders the appraisal and title work. You will receive a Closing Disclosure at least three business days before you sign final loan papers.
4) Inspections and investigations
Book general and specialty inspections early. Review the seller’s disclosures as they arrive. If repairs or credits are needed, your agent negotiates during the inspection window. In many California deals, this period is often negotiated in the 7 to 17 day range.
5) Title search and clearance
Title reviews the property for liens, easements, and exceptions. Escrow coordinates any necessary lien payoffs and confirms how title will be insured at closing.
6) Appraisal and valuation
Your lender’s appraiser visits the property and issues a report. If value comes in low, you may renegotiate, bring extra cash, or cancel if your contract includes protection through appraisal or loan contingencies.
7) Remove contingencies
When you are satisfied with inspections, title, appraisal, and loan, you remove contingencies in writing. Your lender issues a clear to close once conditions are met.
8) Sign, fund, and record
Escrow prepares final statements. You and the seller sign closing documents. The lender funds your loan, escrow disburses funds, and the deed is recorded with Los Angeles County. After recording, you receive final statements and keys.
Key contingencies to know
Inspection contingency
You can inspect and request repairs or credits. If major issues arise and the seller will not address them, you can cancel within the agreed period and seek a return of your deposit under the contract terms.
Loan contingency
If your financing falls through within the agreed time frame, this contingency may allow you to cancel and protect your deposit under the contract.
Appraisal contingency
If the appraised value is lower than the price, you can renegotiate or cancel if this contingency is in place. Sometimes it is included within the loan contingency.
Title contingency
You review the preliminary title report. If unacceptable issues appear, you can request clearance or exercise your rights per the agreement.
HOA review (if applicable)
For condos or homes in associations, you receive HOA documents. You typically have a review period to accept or cancel based on the information.
Required seller disclosures
California sellers must provide the Transfer Disclosure Statement and a Natural Hazard Disclosure that notes whether the home is in mapped hazard zones. Other disclosures can include lead-based paint for homes built before 1978 and a seller property questionnaire. You should review these with your agent as early as possible.
Title, appraisal, and recording
- Title insurance: Standard in California and provides protection against certain defects that a title search may not find.
- Appraisal: Ordered by your lender, typically completed in about one to two weeks depending on availability. Appraisal-driven repairs or rechecks can extend the timeline.
- Recording: Escrow coordinates recording with the Los Angeles County Recorder. Recording typically occurs after funding. Local office volumes can affect same-day timing.
- Local fees and taxes: The City of Long Beach may have transfer taxes, assessments, or fees that affect closing costs. Ask your escrow officer to confirm what applies to your property type so you can budget accurately.
Earnest money basics
Your earnest money shows good faith and becomes part of your funds at closing. The amount is market-driven and negotiated. In more competitive Long Beach situations, some buyers increase their deposit to strengthen an offer. Handling of the deposit if the sale cancels depends on the contingencies and the written escrow instructions. Escrow will only release funds per written instructions from both parties or a court order.
Your escrow checklist
Use this quick list to stay organized from offer to keys.
Before you write an offer
- Choose a realistic escrow length with your agent.
- Decide on your earnest money amount and delivery method.
- Confirm wiring instructions with escrow to avoid fraud.
Right after acceptance
- Deliver your earnest money on time and get the receipt.
- Start your loan application and submit documents quickly.
- Schedule inspections within 1 to 3 days to stay inside your window.
- Begin reviewing the seller’s disclosures as soon as you receive them.
During escrow
- Track contingency deadlines in writing with your agent.
- Read the preliminary title report and flag questions early.
- If there is an HOA, request and review the full packet right away.
- Respond quickly to your lender and escrow officer requests.
Final steps to close
- Do a final walkthrough to confirm agreed repairs.
- Review your Closing Disclosure at least three business days before signing and compare it to your Loan Estimate.
- Verify wiring instructions by phone using a trusted number you find independently.
- Bring valid ID and arrange any remaining funds via wire or cashier’s check as instructed.
Common pitfalls to avoid
- Beware of wire fraud. Confirm instructions by phone with escrow using a number you trust, not one from an email.
- Do not miss contingency deadlines. Late removals can affect your right to cancel or recover your deposit.
- Read every disclosure. Skipping details can lead to surprise repairs or compliance issues.
- Budget for closing costs and escrow funds early. Ask your lender and escrow officer for estimates so there are no last-minute surprises.
Local guidance when it counts
Escrow moves fast in Long Beach, and details matter. A local plan keeps your deadlines on track, your deposit protected, and your closing smooth. If you want a clear timeline, confident negotiations, and a steady hand from offer to recording, let’s talk about your goals and next steps.
Ready to move forward with clarity? Schedule a consultation with Timothy Hoard.
FAQs
What is escrow in Long Beach home sales?
- Escrow is a neutral service that holds your funds and documents, follows written instructions, and coordinates recording with Los Angeles County when all conditions are met.
How long does escrow take in Long Beach?
- Many conventional escrows run 30 to 45 days, with faster timelines possible for cash or highly prepared buyers and longer timelines when lender or seller conditions apply.
When do I deposit earnest money?
- You typically deposit within a few business days after acceptance, using the method outlined in your contract; escrow will issue a receipt and hold the funds.
How much earnest money is typical?
- The amount is market-driven and negotiated; some buyers increase deposits in competitive situations, but there is no single standard amount.
What happens if the appraisal is low?
- You may renegotiate price, bring extra funds, or cancel if protected by appraisal or loan contingencies per your contract.
Which seller disclosures should I expect?
- Expect the Transfer Disclosure Statement, Natural Hazard Disclosure, and other applicable forms such as lead-based paint for pre-1978 homes.
Who chooses the escrow company?
- The choice is negotiable; your agent can recommend options, and both sides agree as part of the contract.
When do I remove contingencies?
- You remove them in writing once satisfied with inspections, appraisal, title, and financing, and within the timelines set in your agreement.
