Buying on the Peninsula moves fast. If you are new to California real estate, the word “escrow” can feel like a black box at the center of it all. You want a smooth close, clear steps, and a safe way to move large sums of money.
This guide breaks down how escrow works in San Mateo County, who does what, what a typical timeline looks like, and how to protect your deposit. You will also get checklists, local norms, and key questions to ask so you can move with confidence. Let’s dive in.
What escrow is in California
Escrow is a neutral third party that holds funds and documents until every contract condition is met. The escrow company follows written instructions from you and the seller, then disburses money and records documents at the right time.
In California, escrow officers perform administrative tasks. They do not give legal advice. Title passes to you when the grant deed is recorded with San Mateo County.
Who does what in escrow
Escrow company and officer
- Open escrow after your offer is accepted.
- Receive and hold your earnest money deposit and later your closing funds.
- Coordinate signatures and prepare the settlement statement.
- Work with your lender and the title company to meet all conditions.
- Instruct the County Recorder to record once funds are in and conditions are satisfied.
Title company and officer
- Order and issue the Preliminary Title Report early in escrow.
- Identify liens, easements, and exceptions to title.
- Issue lender’s and owner’s title insurance at closing.
- Many local firms provide both title insurance and escrow services.
Your lender
- Order the appraisal and complete underwriting.
- Set loan funding conditions and timing.
- Coordinate with escrow on funding, payoff, and required title endorsements.
County Recorder and tax offices
- Record the grant deed and deed of trust at closing.
- Collect recording fees and any documentary transfer taxes required by the county and some cities.
- Maintain parcel and tax records that can affect prorations at closing.
San Mateo escrow timeline
These are common steps and ranges. Your purchase agreement controls the actual dates.
- Day 0: Offer accepted and contract signed. Escrow opens.
- Day 0 to 3 business days: You deliver your initial earnest money deposit to escrow. Get a receipt.
- Days 1 to 3: Escrow orders the Preliminary Title Report.
- Days 1 to 5: You receive seller disclosures and the prelim. Contingency review begins.
- Days 5 to 17: Inspection period. Order general and pest inspections, plus any specialists you need.
- Days 7 to 17: Loan application and appraisal. Your lender advances underwriting.
- By contingency deadlines: You remove or request to extend inspection, loan, appraisal, title, and HOA contingencies in writing.
- Final days before closing: Lender clears to close. Escrow finalizes the settlement statement. You wire your closing funds. Always confirm wiring instructions by phone using a verified number.
- Closing and funding: You sign closing documents. The lender wires funds. Escrow disburses per the instructions.
- Recording day: San Mateo County records the deed. Title transfers at recording. Keys and possession follow the contract.
- After recording: Your owner’s title insurance policy is issued. Escrow delivers your final closing package.
Earnest money deposit basics
Your initial deposit shows good faith and gives escrow funds to apply at closing. On the Peninsula, deposits are often higher than in less competitive markets. The exact amount is negotiated in the contract.
Escrow holds your deposit in an insured account and releases it only according to the written instructions or by written agreement of both parties. If you cancel within an active contingency, you typically get your deposit back. If you cancel without a valid contingency or breach the contract, the seller may have a claim to the deposit, which can lead to a dispute.
Waiving contingencies increases the risk of losing your deposit if you need to cancel later. Always weigh risk and timing with your agent and lender.
Common contingencies to know
Inspection contingency
This lets you inspect the property and request repairs or credits. Windows are often 5 to 17 days and can be shorter in competitive offers. If you and the seller do not agree on repair terms, you can cancel within the contingency period.
Loan and appraisal contingencies
The loan contingency protects you if you cannot obtain financing. The default in common California forms is often 17 days, but sellers here may push for shorter periods. If the appraisal comes in low, you can try to renegotiate, bring in extra funds, or cancel if your appraisal or loan contingency applies.
Title and HOA review contingencies
You will review the Preliminary Title Report for liens, easements, or restrictions. You will also review HOA documents for condos and planned communities. Delivery of HOA documents can affect timing, so plan for that.
Statutory disclosures and NHD
California requires disclosures such as the Transfer Disclosure Statement, Seller Property Questionnaire, and Natural Hazard Disclosure. If new, significant issues surface, you may have rights to cancel under the contract.
Sale of your current home
Some buyers include a sale contingency for their existing home. In tight Peninsula markets, sellers often prefer offers without this contingency. If used, the contract will define the time allowed to sell.
Title insurance and local checks
The Preliminary Title Report lists exceptions, liens, easements, and recorded restrictions. Review it early and ask questions about anything unclear.
A lender’s title policy is required if you finance the purchase. An owner’s title policy is optional but is strongly recommended because it protects you against unknown title defects that predate closing.
Local items to watch include utility easements, rights of way, and special tax assessments. Some properties may have flood, slope, or geological restrictions. Recording fees and transfer taxes vary by county and city. Your escrow team will detail applicable fees for your property.
Peninsula market norms that affect escrow
- Competitive offers are common. Expect shorter contingency windows and pressure to perform quickly.
- Larger deposits are typical in higher priced Peninsula deals.
- HOA document delivery can slow a closing if not requested early.
- Older homes may benefit from specialty inspections such as sewer, roof, or seismic evaluations.
Your escrow checklist
Documents to have ready
- Signed purchase agreement and all addenda.
- Proof of funds for your deposit and closing.
- Lender pre approval or loan commitment.
- Contacts for your escrow officer, title officer, lender, and both agents.
- Homeowner’s insurance binder.
- Seller disclosures and HOA documents if applicable.
Questions to ask escrow or title
- What is my escrow number and who is my main contact?
- How are funds held and what is the secure wiring process?
- When will the Preliminary Title Report be available?
- What local fees, transfer taxes, and prorations should I expect in San Mateo County?
- What is the expected recording day and how do I confirm recording?
Wire transfer safety
- Always confirm wiring instructions by phone using a known, verified number for the escrow company.
- Never act on wiring changes sent by email without a live phone verification.
- Send a small test wire if advised by your bank, then confirm receipt before sending the balance.
Common pitfalls to avoid
- Shortening or waiving contingencies without a clear risk plan.
- Skipping independent inspections and relying only on seller statements.
- Overlooking special assessments or parcel taxes that affect long term costs.
- Declining an owner’s title policy and losing protection against unknown defects.
- Missing email fraud red flags and not confirming wiring details by phone.
- Assuming a tight timeline will hold when HOA documents or title cures are pending.
Closing day to keys
Right before closing, escrow finalizes your settlement statement and your lender issues clear to close. You sign loan and title documents. The lender wires funds to escrow. After escrow verifies all conditions, San Mateo County records your deed. Title transfers at recording. Keys and possession follow your contract terms, which may be at recording or at a time you and the seller agree to.
Buying or relocating on the Peninsula should feel organized and safe. If you want a clear plan for your escrow timeline, deposit strategy, and contingencies tailored to your goals, reach out for a private consultation with Nick Delis.
FAQs
What is escrow in San Mateo County?
- Escrow is a neutral company that holds funds and documents, then disburses money and records the deed only after all contract conditions are met.
How long does escrow take locally?
- Timelines vary by contract and lender, but many steps happen within 17 days for inspections and loan review, with recording after funding once conditions are satisfied.
How much earnest money is typical on the Peninsula?
- Deposit amounts are negotiated; in competitive San Mateo markets, buyers often offer larger deposits relative to price, which escrow then holds in an insured account.
Can I get my earnest money back if I cancel?
- If you cancel within an active contingency that applies, you typically receive your deposit back; canceling without a contingency can put your deposit at risk.
What fees and taxes should I expect at closing?
- Expect recording fees, title insurance premiums, and prorations; the county and some cities may collect documentary transfer taxes that escrow will itemize.
When do I get the keys after closing?
- You receive keys per the contract, often at recording when the deed is on record with San Mateo County unless you and the seller agree to different possession terms.
How do I avoid wire fraud during escrow?
- Confirm wiring instructions by phone using a verified number, never rely on email changes, and coordinate with your bank and escrow officer before sending funds.
