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What’s Escrow?

Protecting Buyers, Sellers, and Funds

What is Escrow?

Escrow is a legally required process in California that uses a neutral third party to hold funds and documents during a real estate transaction. The escrow company ensures that all terms of the purchase agreement are met before money and property ownership are exchanged.

Benefits of Using Escrow

Neutral Protection

Escrow holds funds and documents without favoring either party.

Secure Handling of Funds

All money is held in regulated escrow trust accounts.

Legal & Contract Compliance

Ensures all terms of the purchase agreement are met before closing.

Clear Transaction Timeline

Keeps the transaction organized, structured, and on schedule.

Why You Need Escrow

Using a licensed escrow company is essential for real estate transactions in California. Escrow protects both buyers and sellers by ensuring no party takes unnecessary risk during the transfer of funds and ownership.
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How Escrow Helps
  • Protects buyers and sellers
  • Holds funds securely
  • Prevents early release of money or documents
  • Keeps the transaction organized
  • Ensures all terms are met before closing

Frequently Asked Questions

We got answers

Is escrow required in California?

Yes. Most real estate transactions in California require escrow to protect buyers, sellers, and lenders.

The escrow company is typically agreed upon by both the buyer and seller as part of the purchase agreement.

Most escrows take 30 to 60 days, depending on the transaction type and conditions.

An escrow company holds funds, manages documents, coordinates with all parties, and ensures contract terms are met before closing.

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Are escrow funds safe?

Yes. Licensed escrow companies are required to hold funds in regulated trust accounts and follow strict compliance rules.

Escrow fees are usually split between the buyer and seller, but this can vary based on the agreement.

No. Escrow only closes after all contractual and legal requirements are satisfied.
Yes. Many refinance, private lending, and business transactions also require escrow services.