Buying in San Diego and hearing “we’re opening escrow” can feel mysterious. You want a smooth, on-time closing without surprises. In this guide, you will learn what escrow is, who does what, how the timeline works, and how to protect your money. You will also get a simple checklist you can follow from offer to keys. Let’s dive in.
What escrow means in San Diego
Escrow is a neutral third party that holds your deposit, coordinates documents, and releases funds only when everyone meets the written instructions. It keeps both buyer and seller safe. In San Diego, escrow and title often work within the same company, but their roles are different.
- Your agent advocates for you, manages deadlines, and coordinates inspections.
- The seller’s agent delivers disclosures and negotiates repairs.
- The escrow officer follows written instructions, holds money, prepares closing statements, and coordinates signatures.
- The title officer checks liens, easements, and ownership, then issues title insurance after closing.
- The lender orders the appraisal, underwrites your loan, and wires funds when conditions are cleared.
- Inspectors provide reports and estimates so you can make informed decisions.
- The County Recorder records the deed and mortgage, which completes the transfer.
Typical San Diego escrow timeline
Escrow length depends on your contract and market conditions. Financed purchases commonly run 30 to 45 days. Cash deals often close in 7 to 14 days.
Days 0 to 2: Open escrow
Your offer is accepted and escrow opens. You send your earnest money deposit to escrow, and escrow assigns a file number. Title research begins, and you get instructions about deposits and deadlines.
Days 0 to 3: Seller disclosures
You receive required disclosures such as the Transfer Disclosure Statement, Natural Hazard Disclosure, and lead-based paint disclosure for homes built before 1978. If the home is in an HOA, the seller orders the HOA resale packet.
Days 0 to 10 or 17: Inspections
You schedule a general home inspection and a pest or wood-destroying organism inspection. You can add specialty inspections like roof, sewer scope, pool, or HVAC as needed. During this period, you may request repairs or credits, or you may cancel per the contract if you are not satisfied.
Days 3 to 14: Appraisal
If you have a loan, your lender orders the appraisal early. Results often arrive within 7 to 10 business days after the order. If value comes in low, you can renegotiate, bring extra cash, or cancel if protected by your contingencies.
Days 7 to 30: Loan underwriting
Your lender verifies income, assets, title, appraisal, and insurance. Condo and HOA properties often require HOA financials and documents. Once all conditions are cleared, your lender issues a clear to close.
24 to 72 hours before close: Final walkthrough
You confirm the home’s condition and that agreed repairs are complete. This is not a new inspection, but it confirms the property is in the expected condition.
Signing and funding
You review your Closing Disclosure at least 3 business days before loan consummation. You sign loan and escrow documents, then wire your final funds to escrow using verified instructions. Your lender wires loan funds after final approval.
Recording and keys
Escrow records the deed and mortgage with the San Diego County Recorder within a few business days after funding. Once recording is confirmed, escrow disburses funds and you receive keys based on your contract terms.
Contingencies you will see
- Inspection or investigation contingency lets you inspect and negotiate issues or cancel within the period.
- Loan contingency protects you if financing is not approved within the agreed time.
- Appraisal contingency protects you if the appraised value is below the purchase price, depending on contract language.
- Title contingency allows cancellation if title defects are not cured.
- HOA document review lets you review HOA rules and financials before you commit.
- Sale-of-home contingency appears when a buyer must sell a home first. It is rare in highly competitive areas.
Note that California contracts usually require you to remove contingencies in writing by the deadline. Your agent will help you track and remove them.
Local norms, fees, and documents
- Disclosures arrive early in San Diego. Expect the TDS, NHD, lead-based paint for older homes, and local disclosures. HOA resale packets are standard for condo or planned communities.
- Pest or WDO inspections are common. Lenders may require a report and clearance.
- Fee splits are negotiable and can change with the market. Buyers often pay for the lender’s title policy and loan-related fees. Sellers often pay for the owner’s title policy and may pay transfer taxes depending on contract terms. Your purchase agreement will spell out who pays what.
- Recording timing varies with office workload. Plan for recording a few business days after funding.
- HOA packets can delay escrow if they are not delivered quickly. Build time for review into your contingency plan.
Common issues and practical solutions
- Title defects or liens: Title identifies issues, and the seller usually clears them before closing.
- Low appraisal: Renegotiate the price, request a credit, bring extra cash, or cancel if your contingencies allow.
- Major inspection findings: Request repairs or credits, adjust price, or cancel within the inspection period.
- HOA concerns: If the HOA packet reveals unacceptable issues, you may be able to cancel under the HOA review contingency.
- Wiring mistakes or fraud: Always verify wiring instructions by phone using a known, independent number before sending funds.
Buyer checklist you can follow
Before you make an offer
- Get pre-qualification or pre-approval from a lender.
- Decide on realistic contingency timelines you can meet.
- Budget for the earnest money deposit. Many San Diego buyers plan for 1 to 3 percent, but this is negotiable.
After offer acceptance
- Wire your earnest money to escrow and confirm receipt.
- Order a general inspection, pest or WDO inspection, and any needed specialty inspections.
- Send lender documents quickly to avoid delays.
- Review all seller disclosures and the HOA packet carefully.
- Shop for homeowner’s insurance and secure a binder for your lender.
- Calendar all contingency deadlines and communicate with your agent often.
At signing
- Review your Closing Disclosure and compare it to your loan estimate.
- Ask escrow for an estimated closing statement with prorations.
- Verify all wiring instructions by phone using a trusted number.
After closing
- Keep copies of recorded documents and your title policy.
- Update utilities and HOA contacts.
- Save reports and receipts for your records and future maintenance.
Protect your funds from wire fraud
Wire fraud targets real estate transactions. Scammers can spoof emails and change account numbers. Protect yourself with these steps:
- Call your escrow or title officer using a phone number you obtain from the original agreement or a verified website. Do not trust numbers in unsolicited emails.
- Confirm wiring instructions verbally before every transfer.
- Send a small test wire if timing allows, then confirm with escrow before sending the full amount.
- Do not share wire details over public Wi-Fi or unsecure devices.
How your agent and escrow work together
Your agent coordinates inspections, tracks deadlines, and communicates with escrow and your lender. Escrow stays neutral and follows written instructions from both sides. Title focuses on the legal status of the property. When each party does its part on time, your closing stays on track.
Ready for escrow in San Diego?
You now have a clear view of the process, the timeline, and the key decisions. With the right plan and a local guide, you can move from offer to keys with confidence. If you want a calm, bilingual walkthrough of escrow and strong advocacy at every step, connect with Jorge Alvarez.
FAQs
What is escrow in San Diego real estate?
- It is a neutral third party that holds funds and documents, follows written instructions from buyer and seller, and coordinates recording and disbursement at closing.
How long does escrow take with a loan in San Diego?
- Many financed purchases close in 30 to 45 days, while all-cash deals often finish in 7 to 14 days depending on the contract.
Who pays escrow and title fees in San Diego County?
- Fee splits are negotiable; buyers often pay lender-related costs and sellers often pay the owner’s title policy, but your purchase agreement controls.
What inspections are common in San Diego?
- A general home inspection and a pest or WDO inspection are routine, with roof, sewer scope, pool, or HVAC inspections added as needed.
How do contingencies work in California contracts?
- You get set periods to investigate, secure financing, and verify value, and you must remove contingencies in writing by the deadlines or follow the contract terms.
When do I get the keys to my new home?
- You get keys after escrow confirms recording with the San Diego County Recorder and the contract conditions for possession are met.
How can I avoid wire fraud during escrow?
- Always verify wiring instructions by phone using a trusted source, never from an email link, and confirm receipt with escrow before sending the full amount.
