Buying in Long Beach and hearing the word “escrow” for the first time? You are not alone. It is a standard part of California home sales, but the steps and timing can feel mysterious when you are just getting started. In this guide, you will learn how escrow works in California, what to expect in Long Beach, how long it usually takes, and the key decisions you will make along the way. Let’s dive in.
What escrow means in California
Escrow is a neutral third party that holds funds and instructions until every contract and lender requirement is met. Think of it as the hub that coordinates your deposit, loan papers, title work, and closing. When everything is ready, escrow records the deed with Los Angeles County and disburses the money to the right places.
Escrow vs. title
In California, escrow manages the flow of the transaction. Title handles the title search and issues title insurance. They often work closely together and may even be within the same company, but they are distinct services that serve different roles.
Who selects the company
In many Long Beach deals, the listing side opens escrow and proposes an escrow and title provider. This is negotiable and set in your purchase contract. You can request another provider, and both parties must agree.
How escrow handles money and documents
Your deposit and closing funds
You typically wire your earnest money deposit to escrow within 1 to 3 business days of acceptance, or as your contract states. Escrow holds your deposit in a trust account. If you close, the deposit is applied to your down payment and closing costs. If you cancel within an allowed contingency, escrow follows the contract instructions on return of funds.
Title search and insurance
Escrow orders a preliminary title report to identify liens, easements, or other items that affect ownership. Your lender will require a lender’s title insurance policy. You will also be offered an owner’s title policy. It is optional, but it is strongly recommended since it protects you against covered title defects that existed before closing.
Recording and disbursement
Once all conditions are complete and escrow has your loan funds and cash to close, the deed and any new deed of trust are recorded with the Los Angeles County Recorder. After recording, escrow releases money to the seller, pays off any existing loans, pays agreed fees and commissions, and provides final statements to both sides.
Lender disclosures and timing
If you are financing, your lender must provide a Closing Disclosure at least 3 business days before funding. Escrow cannot close until lender conditions and this timing requirement are satisfied. Your lender will also require proof of homeowners insurance before funding.
Typical Long Beach timeline
Most financed escrows in Long Beach run about 30 to 45 days. All-cash closings can be faster, often 14 to 21 days, if title and inspections move quickly. Your actual timeline depends on your contract, lender speed, appraisal scheduling, HOA document delivery, and any repairs.
Common contingency periods
- Earnest money deposit: usually due within 1 to 3 business days of acceptance
- Inspection period: commonly 10 to 17 days to complete inspections and request repairs
- Loan contingency: often 17 to 21 days to secure underwriting approval
- Appraisal: typically ordered after loan application and often tracked within the loan contingency
- HOA review: timing depends on how quickly the association provides the resale packet
- Title review: begins once you receive the preliminary title report
- Final walkthrough: usually 1 to 3 days before recording
Note that your purchase contract controls these deadlines. Local customs help set expectations, but your contract is the rule.
Key contingencies explained
Home inspection
During your inspection window, you can hire a general home inspector and specialists if needed. You review results and can request repairs or credits. The seller can agree, counter, or decline, and you can cancel within your contingency if you and the seller do not reach agreement.
Termite and pest
Wood-destroying insect inspections are standard in Southern California. A licensed structural pest control operator will provide a report. It separates active infestation from other conditions and recommends treatments or repairs. Who pays for termite treatment or repairs is negotiable. In Long Beach, sellers often address active infestation and related structural repairs, but it depends on market conditions and the agreement you reach.
HOA documents
If the property is in an HOA, expect a resale packet with governing documents, financials, CC&Rs, recent meeting minutes, reserve study summaries, and a status letter. California’s Davis–Stirling Act sets delivery requirements and allows the HOA to charge a fee for the packet. Buyers generally have a short statutory review or cancellation period after receipt, often around 3 days, depending on the statute and your contract.
Title review
Read the preliminary title report. If it shows liens, easements, or exceptions you did not expect, you can object through your agent. The seller may need to clear issues, negotiate a cure, or arrange coverage from title insurance before closing.
Financing and appraisal
A loan contingency protects you if your financing cannot be approved. An appraisal contingency protects you if the property appraises below the agreed price. If the appraisal is low, you can renegotiate, add cash, or cancel if your contingency is still in place.
Long Beach costs and fee customs
Transfer taxes and fees
Escrow calculates and collects Los Angeles County recording fees and any documentary transfer tax. Who pays which items can vary by contract and local practice. Ask escrow for an estimated settlement statement so you can review each line item.
Who pays what
Escrow and title fees, HOA document fees, and transfer taxes are negotiable. Many agents in Long Beach split some fees or allocate costs in the offer based on market conditions. Your purchase agreement will spell out the actual split.
Local tips for Long Beach buyers
Termite norms
Because our climate encourages termite activity, termite inspections and treatment negotiations are routine. If active infestation or structural damage turns up, many sellers agree to treatment or repairs, or to escrow funds for work. The final plan is always case by case and written into your contract or escrow instructions.
Special taxes and permits
Some neighborhoods may have Mello–Roos or special assessments. Seller disclosures and the natural hazard report will flag these. If you see signs of remodel work, ask for a permit history check so you understand what was permitted and finalized.
Final walkthrough and occupancy
Plan a final walkthrough 1 to 3 days before closing to confirm the property is in the same condition and that agreed repairs are complete. Make sure you understand your possession terms, including key handoff and any rent-back.
Your step-by-step escrow checklist
At acceptance
- Send a copy of your ID to escrow and your lender.
- Wire your earnest money deposit on time. Confirm wire instructions directly with escrow before sending funds.
- Apply for your mortgage if financing and begin providing documents to your lender.
During inspections
- Schedule a general home inspection and any specialists you need, such as pest, roof, sewer, or HVAC.
- Review seller disclosures, including the Transfer Disclosure Statement and Natural Hazard Disclosure.
- If applicable, request the HOA resale packet as early as possible.
Before closing
- Read your preliminary title report and raise any questions right away.
- Arrange homeowners insurance and provide the binder to your lender and escrow.
- Review your lender’s Closing Disclosure and escrow’s Estimated Settlement Statement.
- Complete your final walkthrough.
Closing day
- Wire your remaining funds per escrow’s instructions, after confirming details directly with escrow.
- Escrow records the deed with Los Angeles County.
- Get confirmation of recording and pick up keys as agreed in your contract.
What happens on closing day
On the day of closing, escrow confirms all funds and final approvals. The deed and loan documents are recorded with the county. After recording, escrow disburses money to the seller, pays off liens, and issues final statements. You receive confirmation of recording and possession details, then your keys.
Work with a local team
Escrow can be smooth when you know the steps and have a clear plan. You will make better decisions if you understand contingencies, HOA timing, lender rules, and local customs around fees and termite work. A dedicated, process-driven team can keep everyone on timeline and reduce last-minute surprises.
If you want local guidance from offer to keys, including help coordinating escrow, title, inspections, and HOA documents, connect with The Elmer Team. Our Long Beach specialists and transaction management pros will help you move with confidence.
FAQs
How long does escrow take in Long Beach?
- Most financed purchases close in about 30 to 45 days, while some all-cash deals can finish in 14 to 21 days if title and inspections are straightforward.
Who chooses the escrow and title company in California?
- The purchase contract controls selection; in many Long Beach deals the listing side opens escrow and proposes a company, but you can negotiate the provider.
What happens to my earnest money deposit in escrow?
- Your deposit is held in escrow and applied to closing; if you cancel within an allowed contingency, escrow follows the contract instructions regarding return of funds.
Do sellers pay for termite repairs in Long Beach?
- There is no statewide rule; payment is negotiable. Sellers often address active infestation or structural repairs, but outcomes are case by case.
What is the lender Closing Disclosure timing?
- Your lender must provide a Closing Disclosure at least 3 business days before loan funding; escrow cannot close until that timing and all lender conditions are met.
Can I cancel after reviewing HOA documents in California?
- Buyers generally have a short statutory review or cancellation right after receiving required HOA documents, often about 3 days, subject to current law and your contract.
