Buying or selling on the Peninsula and wondering what happens after your offer is accepted? Escrow is where the details get handled, from deposits and disclosures to recording your deed. If you are closing in San Mateo County, you will also navigate local transfer taxes, e‑recording, and property tax prorations. In this guide, you will learn how escrow works in California, what is unique in San Mateo, who does what, and how to get to a smooth, on‑time close. Let’s dive in.
Escrow basics in California
Escrow is a neutral process. A third‑party escrow holder manages funds and documents until everyone completes the steps in the purchase contract. It protects you by ensuring money and title move only when agreed conditions are met.
Who regulates escrow
In California, escrow companies are licensed and overseen by the California Department of Financial Protection and Innovation. You can review consumer guidance and licensing information directly with the California Department of Financial Protection and Innovation.
Real estate licensees are regulated by the Department of Real Estate. Your agent helps prepare contracts and disclosures, coordinates inspections, and keeps communication flowing, but the escrow holder is the neutral party that holds funds and follows written instructions.
Title, recording, and insurance
Title companies search the public record, issue preliminary title reports, and provide title insurance policies for buyers and lenders. The California Department of Insurance regulates title insurance rates and licensing. For consumer overviews and regulatory information, visit the California Department of Insurance.
Recording your deed with the county is what transfers legal ownership. In San Mateo County, recording is completed by the Assessor‑County Clerk‑Recorder once escrow submits properly prepared documents.
Required seller disclosures
California requires sellers of most 1–4 unit homes to deliver a Transfer Disclosure Statement and a Natural Hazard Disclosure. If a home was built before 1978, federal lead‑based paint disclosures apply. These are typically delivered during escrow and tied to contingency timelines. For consumer resources and standard forms information, see the California Association of Realtors.
Step‑by‑step escrow in San Mateo
While every transaction is unique, most Peninsula escrows follow the sequence below. Your specific contract controls timelines and responsibilities.
Open escrow and deposit
- After your offer is accepted, the buyer opens escrow and sends the initial deposit. The escrow holder issues a receipt and holds funds per written instructions.
- The escrow file includes the purchase agreement, buyer and seller details, and the property’s legal description.
Title search and preliminary report
- The title company researches recorded liens, easements, and other items and issues a preliminary title report.
- Escrow coordinates clearing any issues that would prevent a clean transfer of title before recording.
Disclosures and inspections
- Sellers deliver required disclosures and, if applicable, HOA documents. Buyers typically conduct inspections during the contingency period.
- Escrow tracks deadlines and receives written notices like contingency removals or requests for repairs.
Loan processing and appraisal
- If financing, your lender orders an appraisal and processes your loan. Once conditions are satisfied, the lender issues a clear‑to‑close and prepares funding conditions.
- If the appraisal comes in low, the parties may renegotiate price or terms, or cancel per the contract.
Settlement statements, prorations, and payoffs
- Escrow prepares final settlement statements showing credits, debits, and cash to close. Expect prorations for property taxes, HOA dues, and sometimes utilities or rents.
- Escrow orders payoff demands for any existing mortgages, liens, or judgments so they can be paid at closing.
Signing, funding, recording, and close
- You sign escrow and loan documents per instructions. After all conditions are met, the lender funds the loan.
- Escrow submits the deed and related documents to the county for recording. Once the deed is recorded, escrow disburses funds, pays off liens, and issues final documents, including title policies.
Typical timeline and key dates
Many California escrows close in about 30 to 45 days. In competitive Bay Area markets, cash or well‑prepared financed offers may close faster. Your contract sets the schedule and controls contingency periods.
- Contingency periods: The purchase agreement sets time frames for inspections, loan, appraisal, and review of disclosures or HOA documents. Missing a deadline can limit your options or risk deposits.
- Recording turnaround: After signing and funding, recording often occurs the same day or within a few business days, depending on county processing and whether e‑recording is used. San Mateo County accepts e‑recording through approved providers, which can shorten turnaround.
A simple way to think about the flow:
- Week 1: Escrow opens, deposit posted, title search starts, disclosures delivered.
- Weeks 1–2: Inspections and appraisal ordered; lender collects documents.
- Weeks 2–3: Contingency removals begin; repair credits or adjustments negotiated if needed.
- Weeks 3–4: Final loan approval, closing figures prepared, signing scheduled.
- Close week: Funds in, documents recorded with the county, keys delivered after confirmation of recording.
Money, fees, and who pays
Escrow collects and disburses funds based on written instructions. Items often handled at closing include:
- Buyer deposits and remaining funds to close
- Loan proceeds from the lender
- Payoff of seller’s mortgage, liens, and judgments
- Title insurance premiums for owner’s and lender’s policies
- Escrow company service fees
- County and city recording fees and documentary transfer taxes
- Prorations for property taxes, HOA dues, utilities, and rents if applicable
- HOA demand or resale fees and any HOA assessment payoffs
Who pays what is negotiable and often influenced by local custom. In the Bay Area, it varies by city and market conditions. Your contract should clearly state who pays escrow fees, title policies, and transfer taxes to avoid last‑minute confusion.
For recording processes and local documentary transfer tax information, use the San Mateo County Assessor‑County Clerk‑Recorder as your official resource.
San Mateo specifics you should know
A few local items can affect your timeline and bottom line in San Mateo County:
- Recording and e‑recording: San Mateo County accepts e‑recording with approved providers, which can speed recording compared to paper submissions. Check current requirements with the Assessor‑County Clerk‑Recorder.
- Property tax calendar: California secured property tax bills are generally due November 1 and February 1, with delinquency dates November 30 and April 10. Escrow usually prorates taxes as of the closing date. For current deadlines and procedures, see the San Mateo County Treasurer‑Tax Collector.
- Transfer taxes: Documentary transfer taxes may be imposed by the county and, in some cases, the city where the property is located. Responsibility for payment is determined by the contract. Confirm current rates through county or city sources linked from the Assessor‑County Clerk‑Recorder.
- HOA and condos: For condos, townhomes, and some planned developments, escrow obtains HOA resale certificates and governing documents. You typically have a limited time to review HOA budgets, rules, and any pending special assessments.
- Title nuances: Local properties can have recorded easements or overlays. Early review of the preliminary title report helps surface these items and keeps your close on track.
What escrow will need from you
Getting documents in early keeps your escrow moving. Here is what each side typically provides.
From the seller
- Executed purchase agreement and all required disclosure forms
- Existing mortgage payoff details and any lien information
- Entity or trust documents if you are selling in a legal entity or trust
- HOA resale documents, if applicable
- Keys, garage remotes, and relevant manuals to transfer at closing
From the buyer
- Signed escrow instructions
- Proof of funds for down payment and closing costs
- Identification for notarized documents
- Loan documentation requested by your lender
From escrow and title
- Preliminary title report and title exceptions
- Settlement statement and, if financed, the lender’s Closing Disclosure
- Deed and any required recording instruments
- Final recorded documents and issued title policies after closing
For consumer education on closing documents and timelines, visit the Consumer Financial Protection Bureau.
Roles and responsibilities
- Escrow holder: Neutral third party that follows written escrow instructions, prepares settlement statements, coordinates title and recording, and disburses funds.
- Title company: Performs the title search, issues the preliminary report, clears title issues, and issues title insurance.
- Lender: Orders the appraisal, sets loan conditions, issues the Closing Disclosure, and funds the loan.
- Buyer and seller: Provide paperwork, meet contingency deadlines, and sign required documents.
- Real estate agents: Advise on strategy and terms, coordinate inspections and disclosures, and keep everyone aligned with the contract.
Risks and how to avoid them
- Missed deadlines: Inspection, loan, or appraisal dates are critical. Put reminders on your calendar and confirm each contingency removal in writing with your agent and escrow.
- Unclear cost allocations: Spell out who pays escrow fees, title insurance, and transfer taxes in the offer and counter. Clear language prevents last‑minute disputes.
- Title issues: Unreleased liens or judgments can delay closing. Review the preliminary title report early and work with escrow to clear exceptions.
- HOA surprises: Budget changes or pending assessments can impact your costs. Read the HOA resale packet promptly and ask for clarification before contingency removal.
Working with a local pro
San Mateo closings move quickly when you have a clear plan, responsive communication, and a team that knows the county’s recording and tax nuances. Whether you are selling a luxury property or relocating to the Peninsula, you deserve a process that protects your interests and gets you confidently to the finish line.
If you want expert guidance tailored to San Mateo, connect with Allison T. Paulino for a calm, organized escrow experience and a successful close.
FAQs
What is escrow in a California home sale?
- Escrow is a neutral process where a licensed escrow holder manages funds and documents and only releases them when all written conditions in the contract are met.
How long does escrow take in San Mateo County?
- Many escrows target 30 to 45 days, but the timeline depends on financing, contingencies, and title clearance, with cash deals sometimes closing faster.
Who chooses the escrow company in San Mateo?
- Either party can propose an escrow company; the selection is negotiable and often guided by agent recommendations or lender and title relationships.
What happens to my earnest money if the deal cancels?
- Your deposit stays in escrow and is disbursed based on the contract; valid cancellations typically return funds to the buyer, while disputes may require mediation.
When do I get keys after recording in San Mateo?
- Keys are usually delivered once the deed is confirmed recorded by the county and escrow has disbursed funds according to instructions.
Do I need owner’s title insurance in California?
- Lenders require a lender’s policy, but an owner’s policy is separate and optional; many buyers choose it to protect against covered title defects.
How are property taxes prorated in San Mateo escrows?
- Escrow typically prorates property taxes as of the closing date using the county’s tax calendar, so each party pays only their share for the period they own the home.
