Young couple reviewing paperwork at kitchen table

When your offer gets accepted in Los Angeles, there’s a brief moment of celebration.

And then reality sets in.

You are now officially “in escrow.” The clock is ticking. Deadlines are real. Your deposit is about to move. Inspections must be scheduled. The lender starts verifying everything again. The appraisal can impact leverage. Contingencies expire.

For buyers — especially in competitive Los Angeles markets — escrow is where the transaction becomes real.

This guide walks you step-by-step through what happens between accepted offer and recording, from a buyer’s perspective, so you understand:

What you control
What creates risk
Where leverage shifts
How to protect yourself

Escrow is structured. It is procedural. And when understood properly and with the help of an experienced real estate agent, it is manageable.

What “Escrow” Actually Means as a Buyer

Escrow is the neutral holding period between contract acceptance and closing.

A third-party escrow company holds:

Your earnest money deposit
The signed purchase agreement
Instructions from both parties
The lender’s funds (once approved)

No one gets paid and ownership does not transfer until every contractual condition has been satisfied.

In Los Angeles, escrow typically lasts 21 to 30 days, though shorter timelines are common in competitive scenarios.

Step 1: Your Offer Is Accepted — Escrow Opens

The moment both parties sign the purchase agreement, escrow opens.

Within the first few days, you will:

Wire your Earnest Money Deposit
Receive escrow instructions
Begin your contingency countdown

Those first 3–5 days matter. Organization at this stage reduces stress later.

Step 2: Your Earnest Money Deposit (EMD)

In Los Angeles, the deposit is typically 3% of the purchase price.

This deposit:

Demonstrates seriousness
Is held by escrow
Applies toward your down payment

During your contingency period, that deposit is protected. Once contingencies are removed, your deposit becomes at risk if you default.

Understanding this shift is critical.

Step 3: Seller Disclosures Arrive

California is disclosure-heavy. Within the first week of escrow, you will receive documents such as:

Transfer Disclosure Statement (TDS)
Seller Property Questionnaire (SPQ)
Natural Hazard Disclosure
HOA documents (if applicable)
Lead-based paint disclosure (if applicable)

These are not boilerplate forms. They can materially impact your risk profile.

Strong sellers who prepare properly before listing often create smoother escrows. You can see how preparation reduces friction in
Preparing Your Los Angeles Home for Today’s Buyers

Your job as a buyer is to read everything — slowly.

Step 4: Inspections — Your Investigation Window

This is your primary due diligence phase.

Common inspections in Los Angeles include:

General home inspection
Termite inspection
Sewer line inspection
Roof inspection
Foundation inspection (especially for older homes)
Pool inspection (if applicable)

In hillside neighborhoods, additional structural or geological review may be prudent.

You typically have 7–14 days to complete inspections, depending on your negotiated timeline.

After inspections, you can:

Accept the property as-is
Request repairs
Request credits
Cancel within your inspection contingency

This is where leverage still exists. If the home was strategically priced from the beginning, sellers are often more disciplined during inspection negotiations. That pricing dynamic is discussed in Pricing Your Los Angeles Home Correctly in 2026

Step 5: The Appraisal — A Quiet but Important Moment

If you’re financing, your lender orders an appraisal.

The appraiser evaluates:

Comparable recent sales
Condition
Location
Market trends
Property features

If the appraisal comes in:

At value → Smooth continuation
Above value → Instant equity
Below value → Negotiation moment

Low appraisals can trigger:

Price reduction
Buyer covering the gap
Deal cancellation (if appraisal contingency remains)

This is another reason pre-approval strength and pricing alignment matter. For a closer look on pre-approval see Mortgage Prep for First-Time Buyers in LA: What to Do Before You Talk to a Lender

Step 6: Loan Underwriting — Stay Financially Boring

Even if you were pre-approved, underwriting now verifies everything:

Income
Employment
Assets
Debt ratios
Credit profile

This is not the time to:

Open new credit cards
Change jobs
Finance a car
Move money without documentation

Underwriters may request documents at the last minute. Quick response keeps timelines intact.

Step 7: Contingency Removal — The Leverage Shift

Most Los Angeles area contracts include:

Inspection contingency
Appraisal contingency
Loan contingency

Each has a deadline.

When you remove contingencies:

Your deposit becomes non-refundable (absent seller breach)
The contract becomes firm
Your leverage decreases

This is the psychological pivot point in escrow.

Before removing contingencies, ask yourself:

Have inspections been completed?
Are you comfortable with risk?
Is financing fully solid?

Contingency removal should be intentional — not rushed.

Step 8: Title Review — Quiet Protection

Behind the scenes, escrow and title confirm:

Legal ownership
No undisclosed liens
Clear transferability

You will receive preliminary title documents. Title insurance protects you from unknown claims after closing.

Most buyers don’t think about this stage — but it’s fundamental.

Step 9: The Final Walkthrough (Verification of Property)

The final walkthrough typically happens within 5 days of closing and after contingencies have been removed.

This is not another inspection.

It is strictly to verify:

Property remains in substantially the same condition
Agreed repairs were completed
Included items remain
No new material damage occurred

You cannot reopen negotiations over cosmetic concerns.

However, if there is material damage or a failure to perform agreed repairs, that may constitute breach and must be addressed before recording. The key is leverage: Recording has not happened yet. Escrow still controls funds.

This is your final checkpoint.

Step 10: Signing Loan Documents

Usually 3–5 days before recording, you will sign:

Loan documents
Closing Disclosure
Escrow documents

At signing, escrow provides your final “cash to close” figure.

Step 11: Wiring Funds

In most Los Angeles escrows, you wire your remaining down payment and closing costs a few days before recording, not on the actual recording day.

Escrow confirms:

Your funds are received
Lender funds are received
All conditions are met

Only then can recording occur.

Never wire funds without verbally confirming instructions directly with escrow to prevent wire fraud.

Step 12: Recording — The Actual Moment of Closing

In California, the transaction closes when:

The deed records with the county

Not when you sign. Not when you wire. Not when the lender funds.

When recording is confirmed:

Ownership transfers
Funds are disbursed
Keys are released

In Los Angeles County, recording typically happens in the afternoon. That is the true closing moment.

Common Buyer Mistakes During Escrow

Making financial changes
Ignoring disclosure details
Rushing contingency removal
Treating the walkthrough like a new negotiation
Wiring funds without verification

Escrow rewards discipline.

What You Actually Control as a Buyer

You cannot control:

Appraisal outcomes
Underwriting conditions
Seller emotional reactions
Market shifts

You can control:

Your preparation
Your inspection thoroughness
Your communication speed
Your risk tolerance
Your contingency decisions

The buyers who move through escrow smoothly are not lucky. They are organized.

The Psychology of Escrow

Escrow compresses uncertainty into a short timeline.

You may feel:

Excited
Nervous
Protective
Overwhelmed

That’s normal. The structure of escrow is designed to manage risk — not eliminate it. Understanding the sequence reduces emotional reaction.

A Realistic 30-Day Buyer Timeline

Days 1–3: Deposit wired
Days 3–10: Inspections + disclosure review
Days 10–17: Appraisal
Days 14–21: Loan underwriting
Day 17–21: Contingency removal
Days 23–28: Final loan approval
Days 27–29: Final walkthrough
Day 30: Recording

Every transaction varies, but this is typical in Los Angeles.

Final Thoughts

Escrow is not a mysterious waiting period.

It is a structured, deadline-driven risk management process. As a buyer, your leverage is strongest during contingencies.
It shifts after removal.
It narrows after signing.
It ends at recording.

The key is not eliminating risk — it is understanding where it lives. When you understand escrow mechanics, you move with clarity.

And in Los Angeles real estate, clarity is power.