Ten Commonly Asked Escrow Questions: Navigating Escrow and Your Title Company

When purchasing a home, understanding the escrow process and working with your title company is key to a smooth closing. Here are ten commonly asked questions to help you better navigate escrow and know what to expect.

1. When will I know the amount of funds needed to close escrow?

Once your loan documents are received and your escrow instructions are prepared, the title company will notify your real estate agent and/or you of the exact amount required to close escrow.

2. Who schedules the signing appointment?

Typically, your real estate agent will call to schedule your signing appointment. In some cases, the title company may reach out directly to make these arrangements.

3. Can I use a personal check for closing?

No. Under California State Law, all closing funds must be in the form of a cashier’s check or transferred via wire transfer. Teller’s checks drawn from a California bank are also acceptable, but it's essential to confirm with your bank beforehand.

4. When do I get the keys to my new home?

Your real estate agent will hand over the keys upon the close of escrow, usually on the possession date specified in your contract.

5. How long will the signing appointment take?

Plan for 35 to 45 minutes for your signing appointment. This allows enough time to review and sign all necessary documents.

6. What will the escrow officer explain during my appointment?

The escrow officer will review and explain all loan documents, the escrow instructions based on your purchase agreement, the estimated escrow statement, and any preliminary reports or required inspections. You’ll also receive a full copy of the documents for your records.

7. What is a Statement of Information?

A Statement of Information helps the title company differentiate between people with similar names, ensuring that any judgments, liens, or other legal matters in public records are correctly attributed to the right individual.

8. When should I shop for homeowners/fire insurance?

Start shopping for homeowners/fire insurance as soon as your offer is accepted. Recent natural disasters in California have impacted the availability of insurance, so it's important to secure a policy early. Make sure to inform your escrow officer once you've made your selection.

9. What do I need to bring to the Title Company for my signing?

Bring a cashier’s check made payable to the title company (if the amount has been provided) and a valid ID (driver’s license, California ID card, passport, or Military ID).

10. When will I receive my deed showing proof of ownership?

The deed is recorded with the county on the day escrow closes, which officially makes you the homeowner. However, it can take 6-10 weeks for the county to mail you the original recorded deed.