Buying in Beverly Hills should feel exciting, not confusing. If the word “escrow” has you wondering what happens next, you are not alone. You want a smooth closing, clear steps, and guardrails that protect your money. In this guide, you will learn exactly how escrow works in Beverly Hills, who does what, key timelines and contingencies, how funds move, and how to avoid common risks. Let’s dive in.
Escrow in Beverly Hills: What it is
Escrow is a neutral process in California that holds and coordinates funds, documents, and instructions once your offer is accepted. It is designed to protect both you and the seller by making sure every condition is met before money changes hands and the deed records.
In Beverly Hills and across Los Angeles County, escrow is commonly handled by an independent escrow company or the escrow department of a title company. Using an attorney for a standard residential purchase is uncommon in California. The escrow team works with title, your lender if you have one, and the county recorder to complete the transfer.
For a straightforward industry overview, review First American’s consumer primer on how escrow works, which aligns with California practice. You can also confirm that any escrow provider is properly licensed through the California Department of Financial Protection and Innovation’s escrow resources.
- Learn the basics: how escrow works, from a national title leader
- Verify licensure: California DFPI escrow information and oversight
Who does what in escrow
Understanding roles keeps you in control.
- Buyer. You deposit earnest money, complete inspections, secure financing, review title and any HOA documents, remove contingencies on time, and send closing funds.
- Seller. The seller provides required California disclosures, signs escrow instructions and the deed, and turns over possession per the agreement.
- Escrow officer. This neutral coordinator holds funds and documents, prepares settlement figures, orders payoffs, schedules signing, and follows written instructions from both parties.
- Title company. Title searches the property, issues the preliminary title report, clears required items, and issues title insurance policies at closing.
- Lender. If you finance, the lender orders the appraisal, sets loan conditions, sends loan documents, and funds the loan to escrow once conditions are met.
- Real estate agents. Your agent manages negotiations, deadlines, and documents, and helps you evaluate inspection findings and contingency removal.
- LA County Recorder. The county records the deed and any deed of trust. Recording is the official transfer of ownership.
Beverly Hills escrow timeline
Your contract sets the dates, but here is what is common locally for financed purchases.
- Day 0. Offer accepted, escrow opens.
- Days 0–3. You deposit earnest money. Escrow orders a preliminary title report. Seller disclosures begin to arrive.
- Days 3–14. You schedule inspections and review disclosures and any HOA documents.
- Days 7–21. Appraisal is completed and your lender works through underwriting conditions.
- Typical length. Financed escrows often run 30 to 45 days. Cash deals can close in about 7 to 21 days if everyone is ready.
- Three business days before closing. Your lender must deliver the Closing Disclosure under federal TRID rules. Review it carefully and keep the timing in mind. See the Consumer Financial Protection Bureau’s explainer on the Closing Disclosure and three‑day review.
- Closing day. Funds are in escrow, you and the seller sign, escrow records the deed with the county, then disburses funds.
Key contingencies to track
These safeguards give you time to verify the property and your loan.
- Inspection contingency. Your window to inspect and request repairs or credits. The period is negotiated, often within 7 to 17 days.
- Loan contingency. Protects you if your financing is not approved. The timeline often aligns with appraisal and underwriting, commonly 17 to 21 days.
- Appraisal contingency. Lets you respond if the appraised value is below the price. You can renegotiate, add cash, or cancel per the contract.
- Title review. You and your lender review the preliminary title report. Any liens or exceptions must be resolved before closing.
- HOA documents. For condos or homes with an HOA, you review budgets, rules, and any pending assessments within the contract window.
- Seller disclosures. California requires seller disclosures early in escrow. You review them during your investigation period.
Funds and documents: step by step
Here is how money and paperwork move from start to finish.
Open escrow and deposit earnest money. Escrow receives the signed purchase agreement and opening instructions. You send your deposit by wire, check, or via your broker’s trust account per the contract. Escrow confirms the deposit in its trust account.
Title search and preliminary report. The title company issues a preliminary title report that lists liens, easements, and items to clear. You and your lender review it and ask questions promptly.
Inspections and disclosures. You schedule inspections that fit the property type, such as general, pest, roof, sewer, or pool. You review the seller’s disclosures and decide if you want repairs, credits, or to proceed as is.
Loan processing and appraisal. If financing, you complete the loan application and provide documents. The lender orders appraisal and works through conditions.
Contingency removal. You remove contingencies in writing by the deadlines or cancel per the contract. Any agreed credits or changes are documented and sent to escrow.
Final figures and documents. Escrow prepares your settlement statement, coordinates any lender documents, and drafts the grant deed and recording package.
Sign and send funds. You sign loan and closing documents. You send your down payment and closing costs to escrow by wire or cashier’s check. Always confirm wire instructions by phone using a trusted number.
Fund, record, and disburse. The lender wires loan funds to escrow. Escrow records the deed and any deed of trust with the Los Angeles County Recorder, then disburses proceeds, pays off liens, and issues title insurance policies.
For county recording details and fees, review the Los Angeles County Registrar‑Recorder’s overview of real estate recording requirements.
Local costs and who pays
Customs vary by contract, but here is what is common in Southern California.
- Title insurance. Sellers often pay for the owner’s policy that protects you. Buyers typically pay for the lender’s policy if there is a loan.
- Escrow and recording. Escrow fees and recording fees are usually split or assigned by the purchase agreement.
- Transfer taxes and city fees. Los Angeles County charges recording and documentary transfer taxes. Some cities, including Beverly Hills, may have additional local taxes or fees. Amounts and who pays can vary by deal. Confirm early with your escrow officer and review city guidance if applicable.
- HOA fees. If you buy a condo or a home with an HOA, expect HOA document fees and potential move‑in deposits or assessment checks. Review HOA reserves and any pending assessments during contingencies.
Risks to avoid and safety tips
You can avoid most issues with proactive steps.
- Wire fraud. Criminals target real estate closings. Never rely on emailed wire instructions alone. Call your escrow officer using a verified phone number to confirm instructions and the exact amount before sending any funds. The CFPB outlines best practices to protect yourself from wire fraud when buying a home.
- Title issues. Review the preliminary title report quickly. Ask the title officer how any liens, judgments, or easements will be resolved.
- HOA delays. If the property is in an HOA, ask the seller’s side to order the HOA packet immediately. Delays can push your contingency dates.
- Funding holdups. Appraisal surprises, outstanding loan conditions, or wiring delays can slow closing. Stay in close contact with your lender and escrow.
- Recording timing. Large counties sometimes have recording backlogs. Your escrow officer can estimate day‑of recording and confirmation times.
Quick buyer checklist
Use this to stay ahead of deadlines.
- Confirm the escrow company’s legal name, license, and contact info independently.
- Request an escrow and title fee estimate up front.
- Ask for seller disclosures and any HOA documents immediately.
- Book inspections within your investigation window.
- Track appraisal timing and loan conditions with your lender.
- Review your Closing Disclosure at least three business days before closing.
- Verify wire instructions by phone with escrow using a trusted number.
- Review the preliminary title report and ask questions early.
When you know the steps and timing, escrow feels less like a mystery and more like a well‑coordinated handoff. With a clear plan, tight communication, and proper verification, you can close on your Beverly Hills home with confidence.
Ready to talk strategy for your next purchase or to walk through a custom timeline? Schedule a confidential consultation with Unknown Company.
FAQs
What is escrow in a California home purchase?
- Escrow is a neutral third party that holds funds and documents, follows written instructions from you and the seller, and coordinates title, lending, and recording to complete the sale.
How long does escrow take in Beverly Hills?
- Financed purchases commonly close in 30 to 45 days, while cash transactions can close in about 7 to 21 days if documents and funds are ready.
What contingencies should I expect as a buyer?
- You typically have inspection, loan, appraisal, title review, and HOA document review contingencies, each with specific contract deadlines.
When will I get my Closing Disclosure?
- Your lender must deliver the Closing Disclosure at least three business days before closing, per federal TRID rules. Review it carefully and ask questions promptly.
How do I protect my funds from wire fraud?
- Always call your escrow officer using a trusted phone number to verify wire instructions and the exact amount before sending money. Do not rely on email alone.
Who pays title insurance and escrow fees in LA County?
- Customs vary by contract. Sellers often pay the owner’s title policy, buyers typically pay the lender’s policy and loan costs, and escrow and transfer fees are negotiated in the agreement.
