Buying a home in Encino should feel exciting, not confusing. Yet once your offer is accepted, the word “escrow” can make the process feel like a black box. You want clarity on what happens next, how to protect your deposit, and how to keep things on schedule.
This guide breaks down escrow in Encino step by step so you know who does what, how timelines work, what costs to expect, and how to avoid common pitfalls. You will see what to do from offer to keys, plus practical checklists to keep you organized. Let’s dive in.
What escrow is
Escrow is a neutral holding process that protects both buyer and seller while the sale moves from accepted offer to closing. A licensed escrow officer holds funds and documents, follows the contract instructions, coordinates with your lender and title company, and ensures everything is in place before closing.
In Los Angeles County, escrow coordinates with the title company to issue reports and insurance, and with the Los Angeles County Registrar-Recorder/County Clerk to record the deed when the transaction closes. Ownership officially transfers when the deed records.
Who is involved
- You and the seller: You agree to terms in the purchase agreement and complete required documents.
- Your agent and the listing agent: They negotiate terms, track deadlines, and guide you through contingencies.
- Escrow officer and title company: They hold funds, prepare settlement figures, order title work, and manage recording.
- Lender: They underwrite your loan, order the appraisal, and wire loan funds at closing.
- Inspectors and appraiser: They complete the inspections and valuation needed for your loan and your due diligence.
Encino escrow timeline
A typical escrow in the Los Angeles metro area runs about 30 to 45 days, depending on financing and negotiated terms. Shorter or longer timeframes are possible. Always confirm your exact dates in the purchase agreement.
1) Offer accepted and open escrow
Once you have mutual acceptance, escrow opens. You typically send your initial earnest money deposit within the timeframe in your contract, often within 1 to 3 days. Escrow deposits your funds and requests the preliminary title report.
2) Due diligence and contingencies
During the first 7 to 21 days, you complete inspections, review seller disclosures, and study the preliminary title report. Common inspections include a general home inspection, termite or wood-destroying pest inspection, and specialty checks such as roof, sewer scope, HVAC, electrical, foundation, or mold as needed. If the property is in an HOA, you also review CC&Rs, budgets, and meeting minutes.
You may request repairs or credits during this period. Keep a close eye on your contingency deadlines and remove or act on them in writing by the dates in your contract.
3) Financing and appraisal
Your lender processes your loan while inspections are underway. The lender orders the appraisal to confirm value for underwriting. If the appraisal comes in below the agreed price, you and the seller may renegotiate the price, you may bring in additional cash, or you may cancel if your contract allows under the appraisal contingency.
You will receive federal loan disclosures early, including a Loan Estimate, and a Closing Disclosure at least 3 business days before consummation as required by federal rules. Compare them to understand final costs and any changes.
4) Contingency removal and clearance
Once you are satisfied with inspections, appraisal, title, and financing, you remove contingencies in writing per the agreement. Escrow then orders any required payoffs, finalizes title insurance, and resolves any remaining title items before closing.
5) Final walkthrough and signing
You complete a final walkthrough, usually 1 to 3 days before closing, to confirm the home’s condition and any agreed repairs. Escrow provides your settlement figures. You and the seller sign the closing documents. Your lender clears the final conditions and prepares to fund.
6) Funding, recording, and keys
Your lender wires loan funds to escrow. Escrow disburses funds and records the deed and any deed of trust with the Los Angeles County Registrar-Recorder/County Clerk. Recording makes the transfer official. Keys are released according to your contract.
Deposits and contingencies
Earnest money deposit
- Purpose: Shows good faith and is held by escrow while you complete the transaction.
- Typical size: Often 1 to 3 percent of the purchase price, though this can vary based on market conditions.
- Timing: Commonly due within a few days after acceptance, as stated in your contract.
Common contingencies
- Inspection contingency: Time to inspect and negotiate repairs or credits.
- Loan contingency: Protection if your financing is not approved by the deadline.
- Appraisal contingency: Options if the appraised value is below the contract price.
- Title contingency: Time to review the preliminary title report and clear any issues.
- HOA review contingency: For condos or homes in an association.
In competitive Encino and broader LA markets, some buyers shorten or waive contingencies to strengthen offers. This increases risk, including potential loss of deposit if you later cancel outside of contingency terms. Document any changes or removals in writing.
Who pays what
Local customs in Southern California often include the seller paying for the owner’s title insurance policy, while the buyer pays for the lender’s title policy. Escrow fees are commonly split, but this is negotiable. County and city transfer taxes may apply and are allocated per your contract. Review your settlement statement for exact charges and confirm any local taxes with your escrow officer.
Closing costs to expect
For financed buyers, closing costs often total about 2 to 5 percent of the purchase price. This typically includes lender charges, title and escrow fees, recording fees, and prepaid property taxes and homeowner’s insurance. Review your Loan Estimate early and compare it to your final Closing Disclosure, which you will receive at least 3 business days before consummation.
Risks to avoid
- Waiving key contingencies: Increases the chance your deposit could be at risk if issues arise after removal.
- Appraisal gap: If the appraisal is low, you may need to bring extra cash or renegotiate.
- Title issues: Liens or judgments can delay closing. Read the preliminary title report early and ask questions.
- Underwriting delays: Missing documents or late responses can push your closing date. Send lender items quickly.
- Pest and repair disputes: Termite findings and repair negotiations can slow the process. Consider credits if timing is tight.
- Disclosure surprises: California disclosures can reveal unpermitted work or hazard zones. Read everything carefully.
Inspections to prioritize
- General home inspection
- Termite or wood-destroying pest inspection
- Roof and attic evaluation
- Sewer scope, especially for older properties
- HVAC and electrical system checks
- HOA document review, if applicable
- Natural hazard disclosures review for flood, seismic, and landslide risks
Escrow readiness checklist
Use this checklist to stay proactive from day one.
- Fully executed purchase agreement
- Proof of funds for your deposit and closing
- Lender pre-approval and requested documents
- Photo ID for signing and vesting details
- Insurance quotes and agent contact to bind coverage before closing
- Inspection scheduling within the first few days
- HOA documents requested immediately, if applicable
Timeline at a glance
- Day 0: Offer accepted, open escrow, send initial deposit per contract
- Days 3–7: Order inspections, review disclosures and preliminary title report
- Days 7–17: Complete inspections, negotiate repairs or credits, appraisal in process
- Days 17–30: Remove contingencies by deadlines, lender clears conditions
- 3 business days before closing: Receive Closing Disclosure and confirm funds to close
- Closing day: Sign, lender funds, escrow records, keys released per contract
Close with confidence
When you understand how escrow works, you can make decisions with clarity and move at the right pace. In Encino, the key is to act early on inspections, respond quickly to your lender, and track every contract deadline. With the right strategy and steady communication, you will reach recording day with fewer surprises and more confidence.
If you want a calm, well-managed escrow with clear guidance from offer to keys, reach out to Razmick Ohanian for experienced buyer representation in Encino and across the Valley.
FAQs
What is escrow and how long does it take in Encino?
- Escrow is a neutral holding process that manages funds, documents, and recording; in the Los Angeles metro area, it commonly runs 30 to 45 days depending on financing and negotiated terms.
How much earnest money do Encino buyers typically deposit?
- Many buyers offer about 1 to 3 percent of the purchase price, usually due to escrow within 1 to 3 days of acceptance, but exact terms are set in your contract.
Which contingencies should Encino buyers expect?
- Inspection, loan, appraisal, title, and HOA review contingencies are common; confirm deadlines in your agreement and remove them in writing when satisfied.
Who pays title insurance and escrow fees in Los Angeles?
- It is customary for the seller to pay the owner’s title policy and the buyer to pay the lender’s policy, with escrow fees often split, though all items are negotiable in the purchase agreement.
What is the Closing Disclosure and when will I receive it?
- The Closing Disclosure is your final loan cost summary provided by your lender at least 3 business days before consummation under federal rules; compare it with your Loan Estimate.
When do I get the keys to my Encino home?
- After the lender funds and escrow records the deed with the Los Angeles County Registrar-Recorder/County Clerk, keys are released according to your contract.
Which inspections are most important for Encino homes?
- A general home inspection and termite inspection are common, with roof, sewer, HVAC, and electrical checks recommended based on property age and condition, plus HOA document review where applicable.
