What Is Escrow? A California Buyer's Complete Guide

Once your offer is accepted, you enter escrow — a 30–45 day process most buyers don't fully understand. Here's a clear breakdown of every step.

By Shasta Greene · April 8, 2026 · 7 min read

Congratulations — your offer was accepted! Now what? In California, the next 30–45 days are called escrow, and it's where the real work of buying a home happens. Understanding this process helps you stay calm, move efficiently, and avoid costly mistakes.

What Is Escrow, Exactly?

Escrow is a neutral third-party process where an escrow company holds funds and documents on behalf of both buyer and seller until all conditions of the sale are met. In California, escrow companies (not attorneys) handle this process, which is different from many other states.

The Escrow Timeline

What Buyers Pay at Closing

• Closing costs: 1%–3% of loan amount
• Prepaid items: homeowners insurance, property tax prorations, HOA dues
• Down payment balance (minus earnest money already deposited)

Shasta Greene is an Orange County, California real estate advisor and REALTOR®, DRE #02174153.