Buying or selling in Santa Clara County and wondering what actually happens after your offer is accepted? Escrow can feel like a black box, especially when timelines are tight and multiple parties are involved. You want a smooth, on-time close without surprises. In this guide, you’ll see what escrow is, how each step works in Santa Clara County, and how to keep your closing on track. Let’s dive in.
What escrow means in Santa Clara County
Escrow is a neutral third party that holds funds and documents, follows the contract, and disburses money when every condition is met. In California, escrow is often handled by a title company acting as the escrow holder.
Escrow opens once both parties sign the purchase agreement and the buyer delivers the initial deposit as the contract states. The deal closes when the deed is recorded with the Santa Clara County Recorder and funds are disbursed. Your contract’s contingency dates and your lender’s process shape most of the timeline.
The step-by-step escrow timeline
Day 0: Open escrow and deposit
- Buyer and seller sign the purchase agreement.
- Buyer delivers the earnest money deposit to escrow as the contract specifies, often within 24 to 72 hours of acceptance.
- Short deposit deadlines are common in competitive Silicon Valley offers.
Days 1–3: Escrow intake and prelim title
- Escrow opens the file, confirms the contract, and receives the deposit.
- You receive escrow instructions and authorizations to sign.
- Title orders the Preliminary Title Report, which usually arrives within a few business days and shows liens, easements, and exceptions.
Days 1–7: Disclosures and inspections
- Seller disclosures are delivered: Transfer Disclosure Statement, Seller Property Questionnaire, Natural Hazard Disclosure, plus any HOA documents if the home is in an association.
- The inspection contingency is commonly 5 to 17 days in Santa Clara County. In competitive situations, 5 to 7 days is typical. Schedule your general home inspection and any specialists early.
- If needed, a wood-destroying pest inspection is ordered. Lenders may require a report and repairs prior to close.
- Buyers provide any requested documents to the lender and confirm homeowners insurance plans.
Days 7–14: Appraisal and underwriting
- The lender orders an appraisal soon after escrow opens. Turnaround is often 7 to 14 days depending on property complexity and appraiser availability.
- The lender’s underwriter reviews your file and may request conditions to clear. Title items from the prelim are also reviewed and any issues are addressed.
Days 14–21: Loan approval and contingency removal
- Once conditions are satisfied, the lender issues loan approval or “clear to close.”
- Buyers remove inspection and loan contingencies by the contract deadlines, or negotiate credits or repairs.
- For financed purchases, the lender must deliver the Closing Disclosure at least 3 business days before closing. This sets a hard minimum lead time before you can sign and fund.
Days 18–30: Final walkthrough, signing, funding, recording
- The buyer’s final walkthrough usually happens 24 to 48 hours before closing.
- Buyer and seller sign closing documents, either at the escrow/title office or via a remote signing option where allowed.
- After loan funding, escrow confirms clear title and instructs the county to record the deed. Recording may be the same day or within a few business days. Once recorded, funds are disbursed and the transaction is complete.
Typical Santa Clara timelines
21-day escrow (fast and common in multiple-offer settings):
- Day 0: Acceptance and deposit
- Days 1–3: Prelim title ordered, disclosures delivered, inspections scheduled
- Days 3–7: Inspections and pest report; buyer submits lender documents
- Days 7–14: Appraisal and underwriting; negotiate and clear contingencies
- Days 15–20: Final loan conditions cleared; Closing Disclosure delivered
- Day 21: Final walkthrough, sign, fund, record, close
30-day escrow (standard with typical contingencies):
- Follows the same steps with longer windows for inspections, appraisal, and underwriting. This allows extra time to respond to lender conditions.
Many financed transactions in Santa Clara County close in 21 to 30 days. All-cash deals can close faster, sometimes in 7 to 14 days, if title and inspections are clear.
What speeds up or slows down closing
- Inspection findings and repair talks: Small items resolve quickly; structural or pest work can add weeks.
- Low appraisal: Parties may renegotiate price, the buyer may add funds, or the lender may require changes. This can take days to a couple of weeks.
- Title issues: Unreleased liens or clerical errors must be cleared before funding. Timing ranges from a few days to several weeks depending on what is needed.
- Loan conditions: The most common delay. Fast responses to lender document requests help avoid hold-ups.
- HOA documents: Slow delivery can push timelines, so sellers should order the HOA packet right away.
- Wire verification: Always confirm wiring instructions by phone with your escrow officer to avoid fraud. Delays in verified funds can postpone recording.
Local practices to know
- Short escrows: In Silicon Valley, 21-day closes and short inspection windows are common when competition is high.
- E-recording: Santa Clara County supports electronic recording through many title and escrow companies, which can speed recording once funds are in.
- Fees and transfer taxes: Local recording and transfer taxes apply. Who pays is negotiated in the contract. Confirm current figures with your escrow officer.
Your role by week: simple checklists
Buyer checklist
- Deliver earnest money within the contract timeline, often 24 to 72 hours.
- Schedule inspections immediately and review all disclosures.
- Send lender documents promptly and respond to any conditions right away.
- Review the Closing Disclosure as soon as it arrives and ask questions within the 3-day window.
- Arrange homeowners insurance and send proof to escrow.
- Verify wiring instructions by calling your escrow officer before sending funds.
Seller checklist
- Provide all required disclosures and any HOA documents right after acceptance.
- Address agreed repairs or obtain estimates quickly to stay on schedule.
- Share payoff information for existing loans so escrow can prepare accurate figures.
- Prepare keys, codes, and service records for handoff at closing.
What escrow and title do
- Hold deposits, prepare settlement statements, and coordinate payoffs and liens.
- Order the Preliminary Title Report, manage signing, and arrange recording.
- Disburse funds and issue title insurance after recording.
Key deadlines to track
- Initial deposit due date in the contract.
- Inspection contingency deadline and any repair request timelines.
- Appraisal and loan contingency deadlines.
- Closing Disclosure delivery at least 3 business days before closing for financed loans.
- Final walkthrough within 24 to 48 hours before close.
- Signing, funding, and recording target dates.
Final thoughts
Escrow in Santa Clara County follows a clear sequence. Most financed closings land in the 21 to 30 day range, with all-cash purchases often faster. Your fastest path to a smooth close is simple: set realistic contingency windows, respond quickly to lender and escrow requests, and stay proactive on repairs and documents. If you keep each milestone in view, you can move from acceptance to keys with confidence.
Ready for a clear, data-driven plan for your escrow? Connect with Jill Chen & Oliver Huang for step-by-step guidance tailored to your goals.
FAQs
How long does escrow take in Santa Clara County?
- Many financed transactions close in 21 to 30 days, while all-cash purchases can close in 7 to 14 days if title and inspections are clear.
When is my earnest money deposit due after offer acceptance?
- The purchase contract sets this deadline, and it is often 24 to 72 hours after acceptance. Always follow the exact contract language.
When should I schedule home inspections during escrow?
- Schedule immediately after opening escrow. The inspection contingency window is commonly 5 to 17 days depending on your contract.
What is the Closing Disclosure timing for my loan?
- For financed purchases, your lender must deliver the Closing Disclosure at least 3 business days before closing, which creates a minimum lead time to fund.
Who records the deed and when does recording happen?
- The escrow or title company coordinates recording with Santa Clara County. Recording typically occurs once funds are confirmed and all conditions are met.
What are the most common causes of closing delays?
- Loan underwriting conditions, low appraisals, title issues, late HOA packets, and unverified wires are frequent causes. Fast responses and early document prep help avoid delays.
