You have accepted an offer on your Bay Area home. Congratulations. But the sale is not complete until escrow closes and the deed transfers. The closing process involves several critical steps, and understanding them in advance helps ensure a smooth path to the finish line.
Opening Escrow
Once you accept an offer, escrow is opened with a neutral third-party escrow company. In the Bay Area, the choice of escrow officer is often negotiated as part of the offer. The escrow company holds all funds and documents, acting as a neutral intermediary between buyer and seller until all conditions are met.
The buyer deposits their earnest money, typically one to three percent of the purchase price, into the escrow account within three business days. On a two-million-dollar Peninsula home, that is twenty to sixty thousand dollars demonstrating the buyer's commitment.
The Contingency Period
Most offers include contingencies that must be satisfied before closing. The most common are:
- Inspection contingency. The buyer has a specified number of days to conduct inspections and request repairs or credits. In competitive Bay Area markets, many buyers waive this contingency or complete inspections before submitting their offer.
- Appraisal contingency. If the buyer is financing, their lender will order an appraisal. If the home appraises below the purchase price, the buyer may renegotiate or walk away unless this contingency is waived.
- Loan contingency. The buyer's financing must be formally approved. This contingency protects the buyer if their loan falls through.
As each contingency is removed, the transaction becomes more secure. Your agent tracks these deadlines carefully and keeps you informed of progress.
Title and Document Review
The title company conducts a title search to confirm you have clear ownership and that there are no liens, easements, or encumbrances that could complicate the transfer. Any title issues must be resolved before closing. In most cases on the Peninsula, title is clean, but older properties sometimes surface historical easements or boundary questions that need attention.
Signing Closing Documents
A few days before the scheduled close, you will sign the closing documents. These include the grant deed transferring ownership, closing statements itemizing all debits and credits, and any remaining disclosures. A mobile notary can come to your home or office, making this step convenient even on a busy schedule.
Final Walkthrough and Funding
The buyer conducts a final walkthrough, typically the day before or the morning of closing, to confirm the property is in the agreed-upon condition. Once the walkthrough is complete and all documents are signed, the buyer's lender funds the loan, and the escrow company records the deed with the county.
Recording typically happens by early afternoon. Once the deed is recorded, the sale is official, and funds are disbursed to you, usually via wire transfer.
What Sellers Should Prepare For
Plan your move-out timeline carefully. The purchase agreement specifies when you must vacate, which is typically on the day of closing. Ensure all personal property is removed, the home is clean, and all keys, garage remotes, and alarm codes are ready to hand over.
Throughout this process, I manage every detail and deadline so you can focus on your next chapter. If you are preparing to sell, I would welcome the opportunity to guide you through every step from listing to closing.