Getting an offer accepted on a home is a big milestone. After searching, touring properties, comparing options, and negotiating with the seller, you finally have an agreement. But acceptance is not the finish line. It's the beginning of the next phase: escrow.
For many buyers, especially those purchasing their first home, the process that follows can feel like a lot happens at once. There are documents to review, money to deposit, inspections to schedule, lender requests to answer, and deadlines to keep track of. Several different people and companies are also working behind the scenes to get the transaction to closing.
The good news is that the process becomes much easier to understand when you know what each step is for and when it generally happens.
In California, the exact timeline depends on the purchase agreement, the type of property, the financing involved, and the terms negotiated between the buyer and seller. A transaction with a short escrow period may move quickly, while another may need additional time for financing, inspections, title work, or other requirements.
Here is what buyers can generally expect after their offer is accepted on a home in California.
1. The Purchase Agreement Is Fully Executed
Once the seller accepts your offer, the first important step is making sure the purchase agreement has been signed by all required parties and that the final terms are clear.
The purchase agreement is the contract that outlines the terms of the sale. It generally identifies:
The agreed-upon purchase price
The amount of the buyer's initial deposit
The planned closing date
The amount and type of financing
Any seller credits or agreed-upon contributions
Included appliances, fixtures, or other personal property
Contingencies and their deadlines
Any additional terms negotiated by the parties
The date the agreement becomes fully accepted is particularly important because many contract deadlines are calculated from that date.
For example, the agreement may establish deadlines for delivering the deposit, completing inspections, reviewing disclosures, obtaining loan approval, and removing contingencies.
Your agent should help you understand which dates apply to your transaction and keep you aware of upcoming deadlines. Do not assume every California purchase follows the same schedule. The dates written into your signed agreement are what matter.
2. Escrow Is Opened
After the agreement is fully executed, escrow is opened and the transaction begins moving toward completion.
Escrow is a process in which a neutral third party holds and coordinates certain funds and documents until the conditions of the purchase agreement have been satisfied.
In Southern California, escrow is commonly handled by an independent escrow company. The escrow officer helps coordinate the transaction between the buyer, seller, agents, lender, and title company.
The escrow company generally helps with:
Receiving and holding the buyer's deposit
Preparing escrow instructions
Coordinating required documents and signatures
Working with the title company
Receiving funds needed to complete the purchase
Preparing the final settlement statement
Coordinating the transfer of funds and closing process
The escrow officer is not the buyer's personal advisor or the seller's representative. The role is to carry out the transaction according to the applicable instructions and contract terms.
At this stage, you may receive an escrow introduction with contact information, instructions for depositing funds, and documents to review and sign.
Take the time to confirm that the escrow company's information is legitimate before sending money. Never rely solely on wiring instructions received by email. Real estate transactions are targets for wire fraud, and criminals sometimes impersonate agents, escrow officers, or other parties.
Before wiring funds, independently verify the instructions using a trusted phone number you already have or one you obtain through a verified source. If wiring instructions change unexpectedly, stop and confirm them directly.
3. You Deposit Your Initial Deposit Into Escrow
One of the first financial steps after acceptance is delivering your initial deposit, sometimes referred to as the earnest money deposit.
This deposit shows that you are moving forward with the purchase under the terms of the agreement. It is generally held in the escrow account and credited toward the amount you owe at closing.
The purchase agreement specifies the deposit amount, the deadline, and how it must be delivered.
In many California transactions, the initial deposit is a percentage of the purchase price, but the amount is negotiable. It should never be assumed that every buyer must put down the same percentage.
For example, a buyer purchasing a $1 million home with a $30,000 initial deposit would generally have that deposit credited toward the buyer's funds due at closing, subject to the final settlement statement.
The deposit is not an additional fee on top of the purchase price. It is part of the money being applied toward the purchase.
Is the deposit refundable?
This is one of the most important questions buyers should understand.
The deposit is not automatically refundable simply because you change your mind. Whether you can cancel and receive your deposit back depends on the contract, the status of your contingencies, the reason for cancellation, and any applicable legal requirements.
Contingencies can provide contractual protections when a buyer needs to investigate the property, obtain financing, or satisfy other agreed-upon conditions.
If you are considering canceling a purchase, speak with your agent promptly and review the contract before taking action. Missing a deadline or sending a cancellation notice incorrectly can create serious problems.
4. You Schedule Inspections and Investigate the Property
Once escrow is underway, one of the most important things a buyer can do is learn as much as possible about the property's condition.
A home inspection gives you a closer look at the physical condition of the property. It is an opportunity to identify potential concerns that may not have been obvious during a showing.
A general home inspection commonly reviews areas such as:
Roof and visible roofing components
Foundation and visible structural elements
Electrical systems
Plumbing
Heating and air conditioning
Windows and doors
Attic and accessible insulation
Interior and exterior conditions
Visible signs of moisture or water intrusion
Depending on the property, you may also want specialized inspections.
For example, a home with an older roof may warrant additional roofing evaluation. A property with a pool may need a pool inspection. A house with visible signs of past water damage may require further investigation by an appropriate specialist.
Pest and termite inspections
In Southern California, pest inspections are common during the home-buying process.
A licensed pest control company can inspect for evidence of wood-destroying organisms and conditions that may contribute to damage. The report may identify active infestation, damage, or areas that require further attention.
Buyers should understand that a pest report and a general home inspection serve different purposes. One does not necessarily replace the other.
Inspections are an opportunity to understand the home
An inspection report can be lengthy, and it may identify a number of items. Not every observation means the home has a major problem.
Some findings may involve routine maintenance, while others may require additional evaluation or repair. The important part is understanding which items deserve attention and what they could mean for the property.
If an inspector identifies something outside the scope of a general inspection, the buyer may want to consult a qualified specialist.
The inspection period is also an opportunity to ask questions about the home's systems, maintenance history, and any areas that need further review.
5. You Review the Seller's Disclosures
In California, sellers are generally required to provide certain disclosures about the property. These documents help buyers learn about known conditions, past issues, and other information that could affect the property's value or desirability.
The exact disclosure package depends on the property and transaction, but buyers may receive documents such as:
Transfer Disclosure Statement (TDS): A seller disclosure covering the property's condition and known issues, subject to applicable requirements and exemptions.
Seller Property Questionnaire (SPQ): A questionnaire that may provide additional information about the property's history, condition, and other matters.
Natural Hazard Disclosure (NHD): A report identifying whether the property is located in certain mapped hazard areas, such as designated flood, fire, or seismic hazard zones.
Preliminary Title Report: A report showing information about ownership and recorded matters affecting the property, such as liens, easements, and other exceptions.
Homeowners Association documents: If the property is part of an HOA, buyers may receive governing documents, financial information, meeting records, rules, and other association materials.
Permits and improvement records: Depending on the property, buyers may review available information about additions, renovations, or other work completed on the home.
The goal is not simply to collect signatures. Buyers should actually read these documents and ask questions about anything they do not understand.
For example, if a disclosure mentions a previous roof leak, you may want to ask whether it was repaired and whether documentation is available. If an addition is described in the seller's documents, you may want to investigate permit history and whether the work was completed according to applicable requirements.
A disclosure does not guarantee that a property has no problems. It provides information that buyers should consider alongside inspections and their own investigation.
6. Your Lender Continues the Loan Approval Process
If you are purchasing with a mortgage, your lender will continue working on your loan after the offer is accepted.
Being preapproved is an important first step, but it does not mean the loan is fully approved. The lender still needs to review your financial documents, verify information, evaluate the property, and satisfy underwriting requirements.
This stage is often called underwriting.
Your lender may request:
Recent pay stubs
Bank statements
Tax returns
Employment verification
Explanations for certain deposits or transfers
Documentation related to other debts
Updated financial information
Additional documents specific to your loan
Responding quickly can help keep the transaction on schedule.
Avoid making major financial changes
One of the most important things buyers can do during escrow is keep their finances as stable as possible.
Until your loan has funded and the purchase is complete, avoid making major financial decisions without first speaking with your lender.
That means being cautious about:
Opening new credit cards
Financing a vehicle
Taking out a personal loan
Making large unexplained deposits
Changing jobs or employment arrangements
Moving large amounts of money between accounts without documentation
Even if you believe you can afford the additional expense, a lender may need to reevaluate your financial situation. A change in debt, income, or available funds can affect loan approval.
If something changes financially, tell your lender rather than waiting for it to appear during underwriting.
7. The Property Is Appraised
If you are using a mortgage, the lender will generally order an appraisal to help determine the property's market value.
An appraisal is different from a home inspection.
A home inspector evaluates the physical condition of the property. An appraiser evaluates its market value, generally using comparable sales and other relevant information.
The appraiser may consider:
Recent comparable property sales
The home's location
Square footage and layout
Lot size
Overall condition
Property features and improvements
Current market conditions
The appraisal helps the lender determine whether the property provides sufficient collateral for the loan.
What happens if the appraisal comes in low?
Imagine that a buyer agrees to purchase a home for $1 million, but the appraisal comes in at $950,000.
That does not automatically mean the transaction is canceled. It does mean the buyer, seller, and lender may need to evaluate the situation.
Possible paths forward may include:
The seller agreeing to reduce the purchase price
The buyer bringing additional funds, if financially appropriate
The parties negotiating another solution
The buyer exercising an applicable appraisal contingency, if available and properly handled under the contract
The actual options depend on the loan, contract terms, available funds, and negotiations.
This is one reason buyers should understand their appraisal contingency before removing it.
8. You Review the Preliminary Title Report
The title company researches the property's recorded ownership and other matters that may affect title.
The preliminary title report gives the buyer information about the property's ownership and recorded exceptions. It may identify items such as:
Existing deeds of trust or mortgages
Recorded liens
Easements
Covenants, conditions, and restrictions
Other recorded matters affecting the property
An easement, for example, may give another party certain rights to use a portion of the property. HOA restrictions may affect what an owner can do with the home or land.
Not every item in a preliminary title report is necessarily a problem. However, buyers should understand what is being disclosed and ask questions about anything that could affect their ownership or intended use of the property.
The title company also works toward issuing the appropriate title insurance policies. Title insurance is designed to protect against certain covered title-related risks, subject to the policy's terms, exclusions, and exceptions.
9. You Review and Decide Whether to Remove Contingencies
Contingencies are among the most important parts of a California purchase agreement.
A contingency is a contractual condition that gives a buyer a specified period or opportunity to investigate or satisfy a requirement before proceeding without that particular protection.
Common contingencies may include:
Inspection or investigation contingency: Gives the buyer time to investigate the property's condition and review relevant information.
Appraisal contingency: Addresses the property's appraised value in relation to the agreed purchase price and financing.
Loan contingency: Provides a contractual framework for the buyer to obtain the financing described in the agreement.
Review of seller documents: Allows the buyer to review disclosures and other documents provided by the seller.
Title contingency: Allows the buyer to review the preliminary title report and applicable title matters.
HOA document review: May apply when purchasing a condominium or another property governed by a homeowners association.
The exact contingencies and deadlines depend on the signed purchase agreement. Some transactions have shorter periods, some have longer periods, and some buyers may negotiate offers with certain contingencies removed or modified.
Why contingency removal matters
Removing a contingency is a meaningful contractual step. It generally means the buyer is proceeding without that particular contractual protection, subject to the agreement and applicable law.
Buyers should not remove contingencies simply because a deadline is approaching or because someone says it is standard practice.
Before signing a contingency removal, make sure you understand what you have reviewed, what remains unresolved, and what protection you are giving up.
If there is an issue with the inspection, appraisal, financing, or disclosures, discuss it with your agent before making a decision.
10. You Prepare for Closing
As the transaction moves toward its closing date, the lender and escrow company begin preparing the final documents and figures.
Your lender will provide a Closing Disclosure for most mortgage transactions covered by the applicable federal disclosure rules. This document outlines the final loan terms and closing costs.
Review it carefully and compare it with the earlier Loan Estimate. Pay attention to:
Loan amount
Interest rate
Monthly payment
Closing costs
Prepaid taxes and insurance
Cash needed to close
Any credits or adjustments
For most covered mortgage loans, the lender must provide the Closing Disclosure at least three business days before consummation. Your lender should explain how this timing applies to your particular loan.
The escrow company will also prepare a final settlement statement showing the financial details of the transaction.
Your final amount due may include your down payment balance, closing costs, prepaid items, and adjustments for items such as property taxes or HOA dues. Your initial deposit is generally credited toward the amount owed.
Make sure you understand the final amount and how the funds must be delivered. As with the initial deposit, independently verify any wiring instructions before sending money.
11. You Complete the Final Walkthrough
Before closing, buyers generally complete a final walkthrough of the property.
This is an opportunity to confirm that the home is in the condition agreed upon in the contract and that any negotiated repairs or other obligations have been addressed.
During the walkthrough, buyers commonly check:
That the property is still in the expected condition
That agreed-upon repairs have been completed
That items included in the sale remain at the property
That appliances or fixtures agreed to stay are present
That the seller has moved out, if required by the agreement
That there are no new visible issues since the last visit
The final walkthrough is not necessarily another full home inspection. It is a final opportunity to confirm that the property and the seller's obligations align with the purchase agreement.
If something is missing or appears different, bring it to your agent's attention immediately. Do not assume that an issue will automatically be resolved after closing.
12. You Sign the Closing Documents
Once the lender and escrow company are ready, you will be scheduled to sign the documents needed to complete the purchase.
If you are financing the home, these documents may include your promissory note, deed of trust, and other loan documents. You will also sign escrow and title-related paperwork.
Take your time reviewing the documents. Confirm that the names, loan terms, and financial information are accurate. Ask questions if something does not match what you expected.
Depending on the transaction, signing may take place at an escrow office or through another approved signing arrangement.
Signing does not always mean you immediately receive the keys. The lender may still need to fund the loan, escrow must complete its requirements, and the deed must be recorded.
13. The Loan Funds, the Deed Records, and Escrow Closes
The final steps are funding and recording.
Once all required documents and funds are in place, the lender sends the loan proceeds to escrow. Escrow coordinates the remaining funds and documents needed to complete the sale.
The deed is then submitted for recording with the county recorder's office. For a Huntington Beach property, recording takes place through the Orange County Clerk-Recorder.
When the transaction has met the requirements for closing and the deed has been recorded, ownership transfers to the buyer.
The timing of recording and possession depends on the contract and the actual closing process. Your agent and escrow officer should confirm when the transaction is officially closed and when you are entitled to possession.
Once everything is complete, you can receive the keys and begin moving into your new home.
How Long Does Escrow Take in California?
There is no single escrow timeline that applies to every California purchase.
Many financed transactions are structured around a period of several weeks, but the actual closing date is negotiated and written into the purchase agreement.
A cash transaction may be able to close more quickly because it does not require mortgage underwriting. However, inspections, title work, disclosures, and other contractual requirements still need attention.
A transaction may take longer if:
The lender needs additional documentation
The appraisal is delayed
The property requires additional inspections
The buyer or seller needs more time
Title issues need to be resolved
HOA documents take time to obtain or review
The parties agree to extend the closing date
The most useful way to think about escrow is not as a fixed number of days, but as a series of deadlines that need to be met. Your purchase agreement establishes the schedule, and the people involved in the transaction work together to keep it moving.
What Can Buyers Do to Keep Escrow on Track?
Buyers can help prevent unnecessary delays by staying organized and responding quickly.
A few practical habits can make a difference:
Read documents as they arrive. Do not let disclosures, escrow instructions, or lender requests sit unopened. If something is unclear, ask questions early.
Keep communication moving. Respond to your lender, escrow officer, and agent promptly. If you are going to be unavailable, let the appropriate people know.
Schedule inspections early. Inspection appointments can fill up, especially when multiple parties are coordinating access to the property.
Keep your finances stable. Avoid major purchases, new credit, or unexplained financial activity while your loan is being processed.
Track your deadlines. Know when your deposit is due, when inspections need to be completed, and when contingency decisions must be made.
Do not ignore unexpected requests. If your lender or escrow officer asks for something, find out what is needed and when it is due.
Verify all money transfers. Confirm wiring instructions directly through a trusted contact before sending funds.
Frequently Asked Questions
What is the first thing I do after my offer is accepted?
After the purchase agreement is fully accepted, the transaction typically moves into escrow. You should review the contract deadlines, coordinate with your agent and escrow officer, and prepare to deliver your initial deposit according to the agreement.
When do I pay my deposit after an offer is accepted?
Your purchase agreement specifies the deposit amount, delivery method, and deadline. Do not assume the deadline is the same for every transaction. Follow the signed agreement and confirm delivery instructions with escrow.
Can I back out after my offer is accepted in California?
Possibly, but the consequences depend on the purchase agreement, applicable contingencies, deadlines, and reason for cancellation. Canceling outside the protections available under the contract may put your deposit at risk or create other legal consequences. Get professional guidance before taking action.
Do I have to get a home inspection?
A buyer should carefully consider obtaining a professional inspection, even if the purchase agreement does not require one. An inspection can reveal conditions that may not be obvious during a showing. Whether an inspection contingency is included is a separate contractual question.
What happens if the home inspection finds problems?
The buyer can review the findings, ask follow-up questions, and determine whether additional inspections are appropriate. Depending on the contract and negotiations, the parties may discuss repairs, credits, a price adjustment, or another solution. The seller is not automatically required to make every repair requested by the buyer.
What happens if the appraisal is lower than the purchase price?
The buyer and seller may negotiate a solution, the buyer may consider bringing additional funds, or the buyer may have rights under an appraisal contingency if one applies. The lender's loan terms and the purchase agreement determine what options are available.
When do I get the keys to my new home?
Keys are generally provided after the transaction has closed and possession is due under the purchase agreement. In a typical purchase, this follows funding and recording, but the exact timing depends on the contract and closing arrangements.
Does the seller have to make repairs before closing?
Only if the seller has agreed to do so or another contractual or legal obligation applies. A buyer should review any repair agreement and confirm the work is completed as required before closing.
Can my closing date change?
Yes. The buyer and seller may agree to extend the closing date, and certain circumstances may require additional time. Any change should be properly documented rather than relying on a verbal understanding.
The Bottom Line
Having an offer accepted is an exciting step, but there is still important work to do before the home officially becomes yours.
The escrow period is when the buyer investigates the property, reviews disclosures, completes financing requirements, works through title and appraisal matters, and prepares for closing. Each step has a purpose, and the deadlines in the purchase agreement help keep the transaction organized.
The most important thing is to understand your contract, stay on top of deadlines, communicate with the people involved, and ask questions before making decisions that affect your purchase.
At Hennessee Real Estate, we believe buyers should understand what is happening throughout the process—not just hear that everything is moving along. A well-managed transaction means helping buyers stay informed, understand their options, and know what to expect from the accepted offer through closing day.