Congratulations an offer is accepted!

Here is what to expect next!

The Escrow process for a seller typically lasts 30-45 days. (but could be shorter!) The steps below are a general overview of a typical experience for a home seller.  We are here to guide you through the process and work as a team to successfully close the escrow.

Escrow opens: Once the purchase agreement between the buyer and seller is agreed upon by all parties, the contract is considered fully executed and the escrow process begins.  Escrow Contacts will be provided to all parties.

Earnest Money Deposit – The buyer will deposit their earnest money to Escrow directly within 3 days. 

You should never wire money, never answer an email regarding financial information, and never use a phone number or website within an email you receive about wiring money.  If you receive an email about wiring funds or giving any financial information, you need to call the escrow officer or one of their assistants directly to confirm.

Inspections – During the first week of escrow, inspections take place. There are many inspections that a buyer may consider based on the home and its age.   Here are the most typical:

• General Home Inspection

• Wood Destroying Pest Inspection

• HVAC (heating and air) Inspection

• Plumbing/Sewer Inspection

• Chimney Inspection

• Permit Inspection

• Mold Inspection

Within the purchase contract the rights of the buyer are explained.  The home inspector has to note everything they see so an inspection can have a lot of information in it.  After an inspection a buyer can request repairs of certain items they are concerned about.  Sellers can then decide if they will fix those items or possibly give a credit in the escrow process to have those items fixed.  Seller can also decide not to fix anything.  The inspection period is generally 10-17 days then the buyer must remove their contingency regarding inspections.

County and City Requirements - Both LA County and the City of LA have specific requirements in regards to smoke detectors, carbon monoxide detectors, water heater strapping and other requirements.  Please ask us about these requirements as all homes must have these items correctly installed and in LA city inspected to close the sale.

Disclosures – The seller is required to provide within 7 days disclosures informing  the buyer about details of the property. These disclosures are mandatory within the contract.  We will send you a link to complete these disclosures and go over them with you as well.   If the home is in an HOA, escrow will also order these documents for buyer review.  Seller typically has to pay an upfront fee for HOA documents (approx $300-$800 depending on management company) as well as transfer fees.

Appraisal - All homes are appraised by the buyers lender during the escrow process.  Generally homes are appraised at the sales price of the home.  During certain markets homes could be appraised lower than the value of the home.  If that happens buyers either have to bring in the difference between appraised value and sales price or sometimes the price is re-negotiated.  Buyers can "waive" appraisal contingency which means they will pay the sales price of the home and the sale is not based on the appraisal.

Loan Process and Final Approval - Buyer has between 17-21 days typically to get full and final approval of buyers loan.   The escrow process and closing on time depends heavily on the Buyer's final loan approval.

Final Loan Contingency Removed - Once the buyer's loan has been approved and according toe the contract buyer will "release" the final loan contingency in writing.  With all contingencies removed escrow is now in the "home stretch".  IMPORTANT: because buyer has removed all contingencies at this point, if a buyer tries cancelling the contract they could lose their deposit and seller could keep the deposit as recourse.

Sign Final Escrow/Loan Documents - Buyer's lender will release the final loan docs for signature and escrow will setup an appointment for buyer to sign.  This usually happens about 3-4 days before the closing date. 

Final Walk thru - Within about 3 days of closing, buyers will complete a final walk-thru of the home.  This is to confirm the condition of the home and to make sure any repair items have been completed.  

Escrow Closes - Escrow officially is closed when the county "records" the home in the buyers name. Typically you would need to be completely out of your home with it clean and ready to go by 6pm the day escrow closes.  Don't wait until the last minute as we have seen issues regarding overflowing garbage cans and trash left in the home that cause after close issues.  It's always good to double check with the team for reminders of other negotiated terms in the contract for possession.