How Escrow Works on the Westside

Buying or selling on the Westside is exciting, but the escrow process can feel opaque if you don’t work with it every day. You want a smooth closing, clear deadlines, and zero last‑minute surprises. This guide breaks down how escrow works in West Los Angeles so you know what to expect, what to negotiate, and how to protect your money. Let’s dive in.

What escrow is in California

Escrow is a neutral third party that holds funds and documents and follows written instructions from both buyer and seller. In California, independent escrow companies and title companies commonly handle escrow. They coordinate with your agent and lender to make sure every requirement is met before the deed records.

Here is the standard flow many Westside transactions follow:

1. Offer accepted and escrow opened.
2. Buyer wires the earnest money deposit to escrow.
3. Contingencies begin, including inspections, appraisal, loan approval, and title review.
4. Buyer completes inspections and negotiates repairs or credits if allowed by the contract.
5. Lender underwrites the loan and orders the appraisal if financing.
6. Title clears issues and escrow prepares final settlement statements.
7. Signing appointments for loan and transfer documents.
8. Funding and recording with the county, then escrow closes.
9. Keys and possession delivered per the contract.

Escrow is not the title to the property. Title transfers only when the deed records with the county. Escrow’s job is to make sure that recording can happen safely and on time.

Typical Westside timelines

Your purchase contract sets the actual dates. Local norms help you gauge what is reasonable and what might stand out in negotiations.

Standard escrow length

• Financed deals often close in 30 to 45 days.
• Cash deals can close in roughly 7 to 14 days if both sides are ready.
• Some sellers on the Westside ask for shorter escrows, such as 17 to 21 days, to favor a stronger offer.

Common contingencies and ranges

• Earnest money deposit (EMD): Typically due within 24 to 72 hours of acceptance.
• Inspection contingency: Often 7 to 10 days from opening escrow. Buyers may book general, termite, roof, HVAC, pool, or other specialty inspections.
• Loan contingency: Commonly 17 to 21 days, sometimes 21 to 24, depending on lender needs.
• Appraisal contingency: Often mirrors the loan contingency timeline, with appraisals returning in about 7 to 14 days based on appraiser availability.
• Title and disclosures: Buyers usually have a few days to a week to review the preliminary title report and seller disclosures after receipt.
• HOA review: For condos, buyers often request 3 to 5 business days to review HOA documents after delivery.
• Final walk‑through: Usually 24 to 72 hours before closing.

What can speed up or slow down

• Cash shortens timelines, while financing adds steps.
• Jumbo loans common on the Westside can require extra underwriting.
• Appraisals can take longer for unique architect or view homes with few comparable sales.
• Negotiations over repairs or title items can extend contingency periods.

Money in escrow on the Westside

Understanding where funds go and who pays for what keeps everyone aligned and avoids surprises at signing.

Earnest money basics and timing

The EMD shows good faith and is held in escrow. In California, a typical range is 1 to 3 percent of the purchase price. On the Westside, larger deposits are common due to higher prices and competitive offers. Always verify wiring instructions directly with the escrow officer before you send any funds and ask for a written receipt.

Refundability and risk

The purchase contract sets the rules. If you cancel within an active contingency period according to the contract, you are generally entitled to a return of your EMD. Once you remove contingencies, the risk to your deposit increases if you default later. If timelines are tight, request extensions in writing before a deadline passes.

Who pays what in LA closings

Customs vary by deal and by city. In many local transactions, sellers pay for the owner’s title insurance policy, and buyers pay for the lender’s policy if there is financing. Escrow fees are often split, recording fees are commonly a buyer cost, and transfer taxes depend on the jurisdiction and what you negotiate. HOA transfer or estoppel fees and any agreed repair credits are also negotiated and spelled out in the contract.

Local practices that shape negotiations

Westside market dynamics can influence how you structure contingencies, deposits, and timelines.

Competitive offer strategies

Multiple offers are common. Buyers often respond by shortening the inspection and loan timelines, increasing the EMD, or writing above list price. Some buyers write as‑is offers or waive certain contingencies to stand out. That can improve your odds, but it increases risk if issues surface later, so weigh the tradeoffs carefully.

Appraisal and unique homes

Architectural and one‑of‑a‑kind properties are a Westside staple. Appraisals can be more complex and may take longer if comparable sales are limited. If a shortfall occurs, options include renegotiating price, bringing in additional cash, or canceling within the appraisal or loan contingency period if your contract allows.

HOA and condo specifics

For condos and properties in HOAs, expect a document package with CC&Rs, rules, budgets, reserves, and meeting notes. Review these quickly. Pay special attention to reserves, pending special assessments, and any rental restrictions, which can affect loan approval and future marketability. Lenders often require an HOA estoppel or comparable verification as a condition to fund.

How to move through escrow with confidence

A little preparation goes a long way in keeping your deal on track.

Buyer checklist

• Get a written preapproval, not just a prequalification, and have proof of funds ready for your EMD and down payment.
• Decide early how aggressive you want to be with inspection and loan contingencies based on market conditions and your risk tolerance.
• Schedule inspectors immediately after opening escrow. Popular inspectors book quickly on the Westside.
• Verify wire instructions by calling your escrow officer at a known phone number before sending any funds.

Seller checklist

• Request proof of funds and solid preapproval letters with offers. Set clear EMD deposit timing in your counter.
• Decide in advance how you will handle repair requests and whether you prefer credits, specific repairs, or as‑is terms.
• Choose an experienced local escrow and title team that understands LA transfer taxes and HOA timelines.

For both parties

• Track every contingency date. Clarify whether deadlines are calendar or business days.
• Use escrow holdbacks when needed for specific repairs or permit items. Spell out the amount, deadline, and release conditions in writing.
• Confirm who pays each closing cost early so settlement statements match expectations.

What closing day looks like

When conditions are cleared, you will sign final documents. If you have a loan, expect to sign lender disclosures and the note and deed of trust, often with a mobile notary. The lender will fund once its conditions are satisfied and escrow has the signed package. Escrow then releases funds, records the deed with the county, and confirms closing. Keys and possession transfer according to your contract, which may be immediate on recordation or at a set time.

Protect yourself from wire fraud

Wire fraud attempts have increased. Scammers can spoof emails and try to redirect your deposit or closing funds. Protect yourself with these steps:

• Call your escrow officer at a verified phone number to confirm wiring instructions before you send funds.
• Do not rely on emailed changes to wiring details. Confirm any change by phone with a known contact.
• Send a small test wire if time allows, then confirm receipt before sending the full amount.

Final thoughts

Escrow is where every promise in your contract becomes final. With clear dates, smart contingency planning, and strong coordination among your agent, lender, and escrow officer, you can move from acceptance to keys with confidence. If you want a plan tailored to your timeline and property type, we are here to help.

Ready to navigate escrow on the Westside with clarity and speed? Connect with Sam Araghi to map your strategy and Schedule a Private Consultation.

FAQs

Westside LA earnest money refund rules

• Earnest money is typically refundable if you cancel within active contract contingencies according to the agreement. After contingency removal, your deposit is at greater risk if you default.

Typical escrow length in West Los Angeles

• Financed purchases often run 30 to 45 days. Cash deals can finish in about 7 to 14 days if everyone is ready and responsive.

Who opens escrow and who chooses the company

• The seller commonly chooses the escrow company in California, though it is negotiable and must be agreed to in the contract.

If loan approval takes longer than the contingency

• Request a written extension before the deadline. If the date passes without an extension, you risk default and loss of deposit.

Can escrow close early or get extended

• Yes. If all conditions are met early, you can close sooner. If processes take longer, both parties can sign a written extension. Fees or interest may apply.

Who pays title, escrow, and transfer taxes in LA

• Customs vary. Sellers often pay the owner’s title policy, buyers usually pay the lender’s policy and recording, escrow fees are often split, and transfer taxes are negotiated based on jurisdiction.

Biggest escrow risks on the Westside

• The main risks include losing your EMD after removing contingencies, appraisal shortfalls on unique or high‑value homes, wire fraud if instructions are not verified, and delays due to HOA or permit issues.