Heard people say “we’re in escrow” and wondered what that actually means in Martinez? You are not alone. Escrow can feel like a black box when you are buying or selling for the first time. In this guide, you will learn what escrow is, who does what, the typical 30 to 45 day timeline, common fees, and smart ways to keep everything on track. Let’s dive in.
What escrow means in Martinez
Escrow is a neutral third party that holds funds, documents, and written instructions while you and the other side complete the steps in your contract. The escrow holder follows those instructions, coordinates payoffs and recording, and then disburses funds when all conditions are met.
Escrow is different from title and closing. Title work is the research and insurance that make sure you receive clear ownership. Closing is the point when you sign and the deed is recorded. In California, people often say “close of escrow” to mean the moment the deed records with the county and money changes hands.
Escrow companies operate under California law and are regulated. You can verify that an escrow or title company is properly licensed and registered. In the Bay Area, including Martinez and the rest of Contra Costa County, most sales use independent escrow companies or title companies with escrow departments. Who pays which fees can follow local custom, but your purchase contract controls the specifics.
Who is involved and what they do
- Buyer. You deposit your earnest money, review disclosures and title, sign documents, and complete your loan if you are financing.
- Seller. You provide required disclosures, sign seller documents, address agreed repairs or credits, and supply payoff information for any mortgage.
- Escrow officer. This neutral fiduciary holds funds and documents, follows written instructions, prepares settlement statements, coordinates payoffs and recording, and disburses funds at close.
- Title company. The title department searches the record, issues a title commitment, and provides title insurance policies for the lender and, if elected, the owner.
- Lender. If you are getting a loan, the lender orders the appraisal, sets underwriting conditions, and requires a lender’s title policy.
- Real estate agents. Your agents coordinate deadlines, inspections, and communication among you, the other party, escrow, and the lender.
- Other providers. Inspectors, HOA managers for condos, the county recorder and assessor, and sometimes attorneys may be involved as needed.
How escrow works: a local timeline
Most financed escrows in Martinez and greater Contra Costa run about 30 to 45 days. Exact timing depends on your contract, loan type, and the results of inspections and title review.
- Day 0: Offer accepted and escrow opened. The escrow company assigns a file number and issues preliminary instructions. Buyers typically deposit earnest money within three business days or as stated in the contract.
- Inspection and disclosures. Home and pest inspections commonly occur in the first 7 to 17 days, based on your contract. Sellers deliver disclosures such as the Transfer Disclosure Statement and natural hazard reports early in this window.
- Appraisal and loan underwriting. Appraisals often take 1 to 2 weeks after order. Underwriting usually needs 2 to 4 weeks to clear conditions, depending on the lender and your documentation.
- Title review. You and your lender review the title commitment. If there are liens, vesting issues, or other exceptions, escrow and title work to clear them. Complex issues can extend timing.
- Final walkthrough and signing. You complete a final walkthrough 24 to 48 hours before closing. Many documents can be signed a few days before funding. Once conditions are met and funds are in, escrow records the deed and any loan documents.
- Recording and keys. Recording with the county often happens the same day or within 1 to 2 business days. After recording and funding, keys are typically released.
- After closing. You receive final settlement statements and title insurance policies. The owner’s policy often arrives later by mail.
Local factors that can affect timing include HOA document requests and estoppels for condos, verification of parcel or special taxes such as Mello-Roos, and seasonal volume that can impact lender, appraisal, or HOA turnaround times.
What you will pay: common escrow fees
Every transaction has unique costs. Many items are negotiable, and local custom can vary. Your contract and settlement statement control the final split.
- Escrow fee. This is the administrative charge for the escrow company’s services. In many California markets it is often split, but this is negotiable and varies by company and contract.
- Title insurance. Most loans require a lender’s policy. An owner’s policy protects the buyer. Who pays can vary in Northern California. Premiums are based on the price and insurer schedules.
- Recording and notarization. Fees for recording the deed and any loan documents with the county. Payment often depends on which documents are recorded and local custom.
- Transfer taxes. County or city transfer taxes may apply when the deed changes hands. In many transactions the seller pays, but this is negotiable and depends on local rules.
- Prorations. Property taxes, HOA dues, and assessments are prorated to the close date. Escrow also accounts for any supplemental or special district taxes.
- Lender-related fees. If you finance, expect appraisal, underwriting, and other lender charges. These are usually paid by the buyer unless your contract includes seller credits.
- Payoffs and liens. Escrow uses sale proceeds to pay off the seller’s existing mortgage and any recorded liens per written payoff demands.
- Miscellaneous fees. Items can include tax certificates, wire fees, courier or overnight charges, notary, HOA transfer or estoppel fees, and flood certifications.
Ask your escrow officer for an early, itemized estimate of closing costs. If you are using a loan, your lender will provide disclosures that list lender and third-party fees.
Contingencies and title basics in Contra Costa
Most California purchase contracts include key buyer protections called contingencies. Common ones cover loan approval, appraisal, inspections, and review of seller disclosures and the title report. Your contract will spell out deadlines and rights if an issue arises.
Title items that may appear include recorded liens or judgments, easements, or prior unreleased mortgages. Sellers may need to cure these before closing. If you are buying a condo or in an HOA, review CC&Rs and association documents since they can affect lending and insurance.
Property taxes include the base county rate plus possible local assessments or parcel taxes. Escrow prorates taxes to the close date, and you should be aware of potential supplemental assessments after purchase. State natural hazard disclosures are required and may include flood, seismic, or fire zone information where applicable.
Safety first: avoid wire fraud
Wire fraud is a real risk in real estate. Treat any emailed wiring instructions with caution. Do not rely on email alone to send funds.
- Confirm wiring instructions by phone using a number you obtain independently, such as from the escrow company’s official documents.
- Ask your escrow officer to review their secure process before you send any wire.
- Avoid last-minute changes sent by email. If something changes, verify by phone immediately.
Quick-start checklist for buyers and sellers
- Confirm the escrow company’s name, license or registration, and your point of contact.
- Record your escrow file number and estimated close date.
- Know where and how to deposit earnest money, including accepted payment types.
- Track contingency deadlines and who is responsible for each step.
- Request a preliminary settlement statement and ask which fees are estimates versus final.
- Clarify how title issues will be reported and resolved.
- Get the exact wiring instructions and the fraud-prevention steps in writing, then verify by phone.
- Decide how keys and possession will be handled at closing.
- Ask when you will receive final statements and policies after closing.
Local guidance that puts you at ease
Escrow should feel organized and predictable. With the right support, you can move from offer to close with confidence. Our local team tracks deadlines, explains each document, and coordinates closely with escrow, title, lenders, and inspectors so you are never guessing about next steps.
If you are planning to buy or sell in Martinez or nearby Contra Costa communities, let’s talk about your timeline and next best moves. Reach out to Jeff Snell for clear guidance and a smooth path to closing.
FAQs
How long does escrow usually take in Martinez?
- Most financed purchases close in about 30 to 45 days. All-cash sales can close faster if title is clear and everyone signs quickly.
What is the earnest money deposit in Martinez?
- It is a good-faith deposit, often 1 to 3 percent of the price, placed into escrow after acceptance. The exact amount is negotiated in your contract.
When do I get the keys after closing in Contra Costa?
- Keys are typically released after close of escrow, which is when the deed records and funds are disbursed. Your contract controls possession timing.
Who pays title insurance and escrow fees locally?
- Many fees are negotiable and can follow local custom. The contract decides who pays for the owner’s policy, lender’s policy, and the escrow fee split.
What if inspections or title issues reveal problems?
- Your contingencies usually allow you to cancel within deadlines or negotiate repairs or credits. Title defects may require the seller to cure or extend escrow.
How do I prevent wire fraud during escrow?
- Always confirm wiring instructions by phone using a verified number. Do not act on email-only instructions or last-minute changes without voice confirmation.
