Key Points

  • Earnest money deposit (typically 3%) must be wired into escrow within 3 business days.
  • California standard inspection contingency window defaults to 17 calendar days.
  • Contingencies must be removed in writing; they do not expire automatically.

Entering escrow on a Southern California home is an exciting milestone, but the legal deadlines can seem daunting. Here is what happens from contract acceptance to receiving your keys.

Day 1–3: Escrow Opening & Earnest Money Deposit

Upon mutual contract acceptance, escrow is officially opened. The buyer must wire their Earnest Money Deposit (EMD)—normally 3% of the purchase price—to the neutral third-party escrow officer within 3 business days.

Day 4–17: Inspections & Seller Disclosures

This is the most critical due-diligence period. The buyer hires licensed inspectors (general home, sewer scope, chimney, roof) and reviews all statutory California disclosures (TDS, SPQ, Natural Hazard Report). If major structural or safety issues arise, the buyer can request repairs, negotiate a credit, or cancel with their full deposit returned.

Day 18–25: Loan Approval & Appraisal

The lender's independent appraiser evaluates the property's market value. Once underwriting verifies income, assets, and appraisal, full loan approval is issued.

Day 26–30: Final Walkthrough, Signing & Recording

The buyer performs a final verification of property condition to ensure agreed repairs are completed. Loan documents are signed before a notary, closing funds are wired, and the grant deed records with the Los Angeles County Recorder's Office.