Buying in Los Gatos and not sure what happens after your offer is accepted? You are not alone. Escrow can feel like a maze the first time you go through it, especially with timelines, deposits, and lender steps to track. This guide walks you through each stage in plain language so you know what to expect, what to do, and how to avoid delays. Let’s dive in.
What escrow means here
Escrow is a neutral third party that holds funds and follows the contract until all conditions are met and the deed is recorded. In California, a title company often provides both title and escrow services. The title side researches ownership and issues title insurance, while escrow coordinates funds, documents, and recording.
In the South Bay, escrow length depends on your financing and contract. Typical financed escrows in Los Gatos: 30 to 45 days. Cash deals can close faster, but your lender, HOA timelines, and title items can affect the schedule.
Who does what
- Buyer and seller: handle contract tasks like disclosures, inspections, and possession.
- Buyer’s and listing agents: negotiate, coordinate inspections, share disclosures, and track deadlines.
- Escrow officer: opens escrow, holds money, prepares statements, coordinates signing, and arranges recording.
- Title officer: issues the Preliminary Title Report, clears title issues, and provides title insurance.
- Lender: orders appraisal, underwrites the loan, issues the Closing Disclosure, and funds when cleared.
- HOA manager (if applicable): provides the resale package and HOA disclosures that buyers must review.
Step-by-step timeline
1) Offer accepted
Your agent delivers the ratified contract to escrow. Escrow opens the file and shares instructions and an escrow number.
2) Deposit your earnest money
Within a few business days, you wire or deliver your good-faith deposit to escrow. Escrow issues a receipt and holds funds in a trust account until closing.
3) Title search and Prelim
The title company searches county records and issues a Preliminary Title Report listing easements, liens, and other exceptions. You and your lender review it and request any needed fixes.
4) Seller disclosures arrive
You receive required California disclosures, including the Transfer Disclosure Statement, natural hazard info, and lead-based paint if applicable. Review them promptly and ask questions.
5) Inspection, loan, and appraisal contingencies
- Inspection window is commonly 7 to 17 days, depending on your contract. Order general and pest inspections early.
- Loan contingency is often 17 to 21 days. Stay responsive to lender requests.
- The appraisal is usually completed within 1 to 2 weeks after it is ordered.
6) Negotiate repairs or credits
If inspections reveal issues, you may request repairs or a credit. Any agreement is written and sent to escrow.
7) Loan underwriting
Your lender clears conditions and issues a “clear to close.” Escrow coordinates final numbers with the lender.
8) Final walk-through
About 24 to 48 hours before funding, you confirm the property’s condition and any agreed repairs.
9) Signing and funding
Escrow prepares documents like the Grant Deed, Deed of Trust, and settlement statement. You and the seller sign. The lender wires funds to escrow once all conditions are satisfied.
10) Recording and keys
Escrow submits the deed to the Santa Clara County Recorder. Many files are e-recorded, which can mean same-day or next-day recording. After recording, escrow disburses funds and keys are released based on the contract.
Deposits and contingencies
- Earnest money (depósito de buena fe): often 1 to 3 percent of the purchase price, depending on the contract and market. The deposit is credited toward your purchase at closing.
- Additional deposits: sometimes added when you remove contingencies, if negotiated.
- Common contingencies: inspection, loan, appraisal, title, and HOA review. You remove contingencies in writing by the deadlines in your contract to move forward.
Tip: Keep digital copies of income and asset documents ready for your lender. Quick responses keep underwriting on track.
Documents you will sign
- Purchase Agreement, addenda, and escrow instructions
- Preliminary Title Report and final title policy
- Grant Deed transferring ownership to you
- Deed of Trust if you finance the purchase
- Closing Disclosure for loan terms and costs
- Settlement statement with prorations and fees
- Transfer tax declarations and recording forms
- HOA resale documents for condos or PUDs
Santa Clara County specifics
- Property taxes and prorations: Taxes are prorated at closing for the county’s fiscal year, which runs July 1 to June 30. After your purchase, the county reassesses the property and may issue a separate supplemental tax bill. Budget for this additional bill so it does not surprise you.
- Transfer taxes and fees: County or city transfer taxes and recording fees may apply. Escrow calculates these in your estimated closing statement.
- Recording: The Santa Clara County Clerk-Recorder processes deeds and loan documents. Many title companies use e-recording, which can speed up recording, but timing depends on the file and county workload.
- HOA packages: Los Gatos condos and townhomes often require a resale package. Delivery timing varies by HOA and can be a frequent source of delay. Start early.
Keep escrow on track
- Send your deposit immediately as instructed in the contract.
- Schedule inspections within the first few days and confirm availability for any specialists you may need.
- Respond to lender and escrow requests the same day when possible.
- Ask escrow for an early estimate of closing costs, including transfer taxes, title and escrow fees, and prorations.
- Do not make large purchases or change jobs during escrow. It can affect loan approval.
- Verify all wiring instructions by phone using a known phone number. Do not rely on last-minute emails for wire info.
- Clarify possession terms in your contract, including any leaseback or post-closing occupancy.
Spanish quick glossary
- Escrow / escrow account = cuenta de depósito en garantía
- Earnest money = depósito de buena fe
- Contingency = contingencia
- Title insurance = seguro de título
- Grant deed = escritura de transferencia
- Recording = registro
- Preliminary Title Report = informe preliminar de título
Ready to move forward
With a clear plan, escrow becomes manageable. If you want a steady guide who understands both the paperwork and the local process, you are in the right place. With a title and escrow background since 2004 and deep South Bay market knowledge, I can help you move through escrow with confidence, in English or Spanish. Connect with Elsa Garza to get started.
FAQs
How long does escrow take in Los Gatos?
- Financed transactions commonly close in 30 to 45 days, while cash purchases can close sooner depending on title, HOA timing, and other contract items.
How much earnest money is typical in the South Bay?
- Buyers often deposit about 1 to 3 percent of the purchase price as earnest money, with amounts set by the contract and market conditions.
What is a supplemental property tax bill in Santa Clara County?
- After a change of ownership, the county may reassess and issue a separate supplemental bill that is in addition to regular annual taxes.
How does e-recording affect my closing day?
- Many Santa Clara County documents are e-recorded, which can allow same-day or next-day recording, but timing depends on the file and county processing.
What can delay a Los Gatos condo closing?
- HOA resale documents can take time to arrive, so requesting the package early and following up on status helps avoid delays.
How can I avoid wire fraud during escrow?
- Always confirm wiring instructions by calling your escrow officer at a known phone number and never rely on emailed changes to wiring details.
