Buying or selling a home in San Carlos comes with lots of moving parts. One step that can feel mysterious is escrow. You hear it often, yet it is not always clear what happens or who is in charge. You want a smooth, stress‑managed closing and clear answers about timing, money, and risk. This guide breaks down escrow in plain English for San Carlos so you know exactly what to expect, what to watch, and how to keep your closing on track. Let’s dive in.
What escrow means in San Carlos
Escrow is a neutral process where a third party holds funds and key documents while both sides complete the terms of the purchase contract. When all conditions are met, the deed is recorded and money is disbursed. In California, escrow companies are licensed and overseen by the California Department of Financial Protection and Innovation, which sets rules for handling client funds and recordkeeping.
You will also work with a title company. Title and escrow often operate together, but title insurance is a separate product issued to protect ownership interests. For background on industry practices, see the American Land Title Association guidance on title and settlement.
Local customs in San Carlos follow California and Bay Area norms. City and county fees can vary, so it is smart to confirm any transfer taxes or recording fees with the San Mateo County Recorder and the City of San Carlos official site.
Who does what in escrow
Each party plays a specific role. Knowing who handles what keeps the process efficient and avoids crossed wires.
Buyer
- Makes the offer and deposits the earnest money into escrow.
- Completes inspections and reviews disclosures and title reports.
- Works with the lender on appraisal and loan approval.
- Signs closing documents and brings in final funds.
Seller
- Provides required disclosures and any reports already on hand.
- Authorizes payoffs for any existing loans or liens.
- Signs the deed and coordinates delivery of keys per the contract.
Escrow holder
- Acts as a neutral third party following written instructions.
- Receives and disburses funds, prepares settlement statements, and coordinates document signing.
- Confirms all conditions are satisfied, then records the deed and releases funds.
Title company
- Runs the title search and issues the preliminary title report.
- Flags liens, easements, or other issues and arranges title insurance.
- Coordinates with escrow for recording and policy issuance.
Lender
- Orders the appraisal and completes underwriting.
- Sends funding conditions and, once satisfied, wires loan funds to escrow.
Real estate agents
- Coordinate communication, timelines, and negotiations between parties.
- Help schedule inspections, review reports, and keep contingency dates on track.
Inspectors and HOA contacts
- Provide inspection and pest reports.
- For condos or townhomes, the HOA supplies resale documents for buyer review.
Timeline: from offer to keys
Every contract is different, but most San Carlos escrows follow a similar flow. Competitive conditions can shorten timelines. Complex title issues or lending delays can extend them.
- Days 0 to 1: Offer accepted and escrow opened. Escrow receives the purchase agreement and opens the file.
- Days 1 to 3: Earnest money deposit due. Buyer wires or delivers funds to escrow per the contract.
- Days 0 to 7: Inspections begin. Buyers schedule general, pest, and any specialty inspections. For attached homes, request the HOA resale package. Buyers can request repairs or credits based on findings.
- Days 7 to 21+: Loan processing and appraisal. Underwriting and appraisal typically take 2 to 4 weeks. Many Bay Area loan contingencies fall in the 21 to 25 day range, though the parties can negotiate shorter or longer.
- Ongoing: Title review. The preliminary title report arrives early. Clearing liens or other exceptions can take days to weeks.
- Final week: Signing and final walkthrough. Buyers sign loan docs and the closing package. A final walkthrough happens 1 to 3 days before close to confirm property condition.
- Closing day: Funding and recording. Once all funds arrive and instructions are satisfied, escrow records the deed with San Mateo County and disburses funds. Keys are delivered after recording unless the contract says otherwise.
In San Carlos, typical escrow lengths range from about 17 to 45 days. All‑cash or contingency‑light offers can close faster, sometimes in 7 to 14 days once title is clear.
Escrow costs and who pays
Every contract negotiates costs. Customs in California are common, but they can vary by county and city.
- Earnest money deposit. This good‑faith deposit is held in escrow. Amounts are negotiated and often a few percent of the purchase price in San Carlos. In multiple‑offer situations, buyers sometimes offer more to signal strength.
- Escrow fees. The escrow company charges a settlement fee. In many California transactions, buyers and sellers split this fee, but it is negotiable.
- Title insurance premiums. There are usually two policies. Buyers with a mortgage pay for the lender’s policy. The owner’s policy is often paid by the seller in California, though this can be negotiated.
- Recording fees and transfer taxes. County recording fees apply. Some cities levy local transfer taxes. Confirm details with the San Mateo County Recorder and the City of San Carlos official site.
- Prorations and HOA costs. Escrow prorates property taxes and HOA dues as of closing. Expect HOA transfer or document fees for condos and townhomes.
For the contract language that drives most timelines and cost splits, see the California Association of Realtors standard forms and contingency language.
Contingencies you might use
Contingencies protect you while you verify the property, financing, and title. In a hot market, some buyers shorten or remove them to compete, but that increases risk. Common options include:
- Inspection contingency to allow cancellation or negotiation based on findings.
- Loan or financing contingency in case underwriting does not approve the loan.
- Appraisal contingency for mismatches between appraised value and price.
- Title contingency to review the preliminary report and resolve defects.
- HOA document review for condos and planned developments.
- Sale‑of‑home contingency if you need to sell your current home first.
The escrow officer executes the instructions and cannot give legal advice. Your agent can help you understand the tradeoffs of any contingency decisions.
Wire funds safely
Wire fraud is a real risk in real estate. Treat wiring instructions with care.
- Call your escrow officer using a trusted phone number from your agent to confirm instructions before you wire.
- Do not rely only on email. Hackers can spoof addresses or attach fake instructions.
- Confirm the account name and routing number match what escrow provided.
For consumer protection and oversight information on escrow companies, visit the California Department of Financial Protection and Innovation.
Common delays and how to avoid them
You can prevent many hiccups with early checks and clear dates.
- Loan underwriting and low appraisals. Start document gathering early, respond fast to lender requests, and discuss appraisal risk with your agent.
- Title defects or liens. Ask escrow and title for the preliminary title report right away. Resolve any liens, judgments, or vesting issues early.
- HOA document delays. Order the HOA resale package promptly. Build in extra days for buyer review.
- Late disclosures. Sellers should deliver all required disclosures quickly. Late delivery can extend the buyer’s rights and the timeline.
- Vague dates. Make sure the contract has clear contingency removal and closing dates. Use a shared calendar to track milestones.
For general settlement practices and what to expect at closing, the American Land Title Association provides helpful background.
Your escrow checklist
Here is a practical list you can use to stay ahead:
- Get the escrow company name, officer contact, and escrow number.
- Confirm escrow is open and the earnest money was received and cleared.
- Request a preliminary settlement statement early so you can plan cash to close or net proceeds.
- Review the preliminary title report and ask about any exceptions.
- Track contingency removal dates and the target close date.
- If applicable, request the HOA resale package and delivery timeline.
- Sellers: ask about mortgage payoff requirements and timing.
- Ask escrow to confirm recording procedures, final signing, and key handoff.
- Verify wiring instructions by phone before sending any funds.
Local notes for San Carlos buyers and sellers
San Carlos is part of a competitive San Mateo County market. That often means shorter contingency periods and quicker closes for strong offers. If you are financing, allow 2 to 4 weeks for appraisal and underwriting. If you are paying cash, escrow can shorten once title is clear and documents are ready. Condo and townhouse sales add HOA document review, which can add days to the schedule.
How Ektra Real Estate helps
You deserve a closing that feels organized, transparent, and calm. As a boutique San Carlos brokerage, we coordinate escrow details with a neighborhood‑first approach and data‑led discipline. We help set realistic timelines, track every milestone, and keep all parties informed so decisions are clear and delays are rare. Our team’s local experience with San Carlos customs, city processes, and Bay Area lender expectations helps you move from offer to keys with confidence.
Whether you are upsizing, relocating, or purchasing all cash, we tailor the plan to your situation and negotiate terms that fit your risk comfort and goals. If you are preparing to sell, we pair premium listing presentation with a clean escrow strategy that protects your timeline and net proceeds. Ready to get started or want a quick read on your options? Reach out to Ektra Real Estate for a thoughtful plan and a smooth path to closing.
FAQs
What is escrow in a California home sale?
- Escrow is a neutral third party that holds funds and key documents and follows written instructions until all contract conditions are met, then records the deed and disburses money.
How long does escrow take in San Carlos?
- Typical escrows run 17 to 45 days, with cash or contingency‑light deals sometimes closing in 7 to 14 days once title is clear.
Who holds my earnest money deposit?
- The escrow company holds your earnest money in a trust account and releases it according to the purchase contract and any contingency terms.
When do I get my keys after closing?
- You usually receive keys right after the deed records with San Mateo County, unless your contract sets a different key handoff time.
Who pays escrow and title fees locally?
- Costs are negotiable. Many California deals split escrow fees, sellers often pay the owner’s policy, and buyers pay the lender’s policy, but your contract controls the final split.
How do I verify wiring instructions safely?
- Call your escrow officer using a trusted phone number to confirm details before wiring. Do not rely only on email or links in messages.
What happens if contingencies are not removed?
- Buyers may cancel within the contingency window and receive a refund of the deposit per the contract; after deadlines, remedies depend on the contract terms.
Do San Carlos homes have extra transfer taxes at closing?
- County recording fees apply and some cities charge transfer taxes. Confirm current rules with the San Mateo County Recorder and the City of San Carlos official site.
