Heard someone say “we’re in escrow” and wondered what that really means for you as a first-time buyer in Oakland? You’re not alone. Escrow can feel mysterious until you see how the pieces fit together. In this guide, you’ll learn what escrow is, who does what, how long it takes in the East Bay, what happens to your deposit, and how to protect your money from wire fraud. Let’s dive in.
What escrow means in California
Escrow is a neutral third-party process that coordinates your closing. The escrow holder follows written instructions from you, the seller, and your lender, holds your deposit in trust, collects and disburses funds, and arranges for recording of the deed and any loan.
In the East Bay, escrow services are provided by escrow companies, often within or alongside a title company. Many firms here offer both services under one roof, but escrow and title play different roles.
- Escrow officer: manages the closing, holds funds, prepares settlement statements, coordinates signing, and releases money at recording.
- Title department: researches the property’s history, issues a preliminary title report, clears liens or title issues, and issues title insurance policies.
When you finance your purchase, your lender adds specific instructions for escrow, requires an appraisal, and typically requires a lender’s title insurance policy.
Who does what in an East Bay closing
Your escrow officer
Your escrow officer is the hub for documents and money. They open the file, track deadlines, collect payoffs, coordinate your signing, and send the deed and loan to the county for recording.
Your title team
Title reviews the chain of ownership and flags issues such as liens, vesting discrepancies, or easements. They work with escrow to clear items so you can receive clean title.
Your lender
If you are getting a mortgage, your lender orders the appraisal, underwrites your file, sets conditions, and coordinates with escrow on funding and final numbers.
You and your agent
You schedule inspections, review disclosures, respond to lender requests, decide on repairs or credits, and remove contingencies by your contract deadlines. Your agent helps you set realistic timelines and negotiate terms.
Typical escrow timeline in Oakland
Most financed purchases in the East Bay close in about 30 to 45 days from acceptance to recording. Shorter 21-day escrows are possible when everyone moves quickly. Cash deals can close in 7 to 14 days if title is clear and the seller is ready. Your contract sets the exact timing.
Sample 30-day financed timeline
- Days 0–2: Offer accepted; you deliver your earnest money deposit to escrow and escrow opens the file. Title orders the preliminary report.
- Days 3–7: General, pest, and any specialty inspections. You launch your loan application and the lender orders the appraisal. Preliminary title report typically arrives within the first two weeks.
- Days 7–14: Review inspection reports and negotiate repairs or credits. Lender reviews the appraisal and requests conditions.
- Days 14–21: You remove contingencies per your contract once issues are resolved. Title clears any liens or vesting questions.
- Days 21–30: Final loan conditions are met. Escrow prepares your final settlement statement. You sign closing documents, the lender funds, the county records the deed, and funds are disbursed.
If you are buying a condo in Oakland or Berkeley, give extra time for HOA resale documents. Associations often need 7 to 14 days or more to deliver full disclosure packages, which can push contingency or closing dates.
Your money during escrow
Earnest money deposit (EMD)
Your initial deposit shows good faith and is held by escrow. In competitive East Bay markets, deposits often range from a few thousand dollars to a few percent of the purchase price. Your contract will state the amount and due date, often within 1 to 3 business days of acceptance.
You can typically deliver funds by wire transfer or cashier’s check. Personal checks may be accepted but can slow things until they clear. Some offers include an additional deposit later, such as at contingency removal.
Closing costs
Closing costs include escrow and title fees, recording fees, transfer taxes, prorated property taxes, possible HOA transfer fees, and lender costs when applicable. Who pays which items varies by contract and local custom, so you will negotiate this in your offer.
Title insurance basics
- Lender’s policy: usually required when you finance and protects the lender’s lien position.
- Owner’s policy: optional but strongly recommended to protect you from covered title defects not found during the search. It is a one-time premium paid at closing.
Who pays for these policies is negotiable and can follow local custom. Your agent and escrow officer can explain the norm for your specific deal.
Contingencies that shape your deal
- Inspection contingency: You get time to inspect, review reports, and negotiate repairs or credits. In our area, windows of 7 to 17 days are common but negotiable.
- Loan contingency: Protects you if financing does not come through. Timelines often run 17, 21, or 30 days, tied to lender milestones.
- Appraisal contingency: Lets you address a low appraisal through negotiation, adding cash, or canceling per the contract terms.
- Title review: You review the preliminary title report and raise objections. Issues must be resolved before closing.
- Sale-of-home contingency: Gives you time to sell your current home. This often lengthens escrow and can be less competitive in multiple-offer situations.
In hot Oakland and Berkeley markets, sellers often favor shorter contingency periods and larger deposits. If you want more protection or time, you may offset with price or other terms.
How closing day works
Once your lender gives the clear to close, escrow prepares your final settlement statement. You sign loan and title documents and arrange to send in any remaining funds. Your lender funds the loan, escrow records the deed and loan with the county, and then releases funds.
After recording, you receive keys per your contract. Title insurance policies are issued shortly after recording.
Wire safety checklist
Wire fraud is a real risk in real estate. Protect yourself with a few simple habits:
- Call your escrow officer at a trusted phone number you already have to verify wiring instructions before sending money.
- Do not rely on phone numbers or links in an unexpected email about wiring.
- Ask for written confirmation of any change to wiring instructions and verify it by phone.
- Send a small test wire if time allows and confirm receipt before sending the full amount.
- Notify your bank and escrow immediately if you suspect anything unusual.
Common escrow delays and how to avoid them
- Appraisal or underwriting backlogs. Respond to lender requests quickly and sign disclosures right away.
- Title issues like tax or judgment liens, or complex vesting. Review the preliminary title report early and address items fast.
- Slow HOA document delivery for condos. Request HOA resale packages immediately after acceptance and track delivery.
- Seller logistics, such as needing extra time to move. Build realistic timelines into the contract.
- Prolonged repair negotiations. Decide early which items matter most and consider credits instead of repairs when time is tight.
- Funding or wire delays around bank holidays. Plan your final wire a day early when possible.
Quick buyer checklist
- Get a strong preapproval and ask your lender about appraisal timing.
- Decide how much you can deposit now and whether you can add an additional deposit later.
- Set realistic contingency periods that match lender and HOA timelines.
- Deliver your EMD on time and keep the receipt.
- Schedule inspections immediately.
- Review the preliminary title report early and ask questions.
- If you are buying a condo, request HOA documents right away and review them carefully.
- Verify all wiring by phone before sending funds.
- Plan your final walk-through 1 to 3 days before closing.
- Review your final settlement statement carefully before wiring funds.
Partner with a local guide
You deserve a smooth, transparent escrow with no surprises. As a family team rooted in the East Bay, we simplify each step, set realistic timelines, and keep everyone moving so you can get the keys on time. If you are planning a purchase in Oakland or nearby, let’s talk about your goals and build a plan that fits your timeline and comfort level.
Have questions or want a quick strategy session? Reach out to Amanda Lesser to get started.
FAQs
How long does escrow take for Oakland buyers?
- Most financed purchases close in about 30 to 45 days. Cash deals can close in 7 to 14 days if title is clear and the seller is ready.
How much earnest money will I need?
- Deposits vary by deal and market, commonly from a few thousand dollars to a few percent of the price, and are usually due within 1 to 3 business days of acceptance.
What is a preliminary title report?
- It is a document from the title company that shows ownership, liens, easements, and other recorded items that must be reviewed and cleared before closing.
Do I need owner’s title insurance?
- It is optional but strongly recommended because it protects you against covered title defects that were not found during the title search.
What happens if the appraisal is low?
- You can renegotiate, add more down payment, or cancel based on your appraisal contingency and contract terms.
When do I get the keys?
- After the county records your deed and the transaction funds, you receive keys based on the possession terms in your contract.
Can HOA documents slow down my condo purchase?
- Yes. HOA resale packages can take 7 to 14 days or longer to arrive, which may affect contingency and closing dates if not requested early.