Buying or selling in San Francisco and wondering what actually happens in escrow? You are not alone. The process is detail heavy, and local rules can affect your timing and costs if you do not plan ahead. This guide breaks escrow into clear steps, explains typical timelines and contingencies, and highlights San Francisco items that often surprise first‑time buyers and local sellers. Let’s dive in.
Escrow basics and key roles
Escrow is a neutral process that holds money and instructions until the terms of your purchase contract are met. In California, escrow is commonly handled by a title company that also provides title work. Here is who does what:
- Buyer and seller: sign the contract, meet deadlines, and fund or receive proceeds.
- Real estate agents: coordinate timelines, documents, and negotiations. Local agents advise on common San Francisco practices for fees and deadlines.
- Escrow officer: opens escrow, holds funds, tracks conditions, prepares closing statements, and disburses money when the deal is ready to close. Escrow companies in California are regulated by the Department of Financial Protection & Innovation.
- Title officer: runs the title search, issues the preliminary title report, resolves title issues, and issues title insurance.
- Lender team: for financed deals, orders the appraisal, issues conditions, and funds the loan when cleared.
- San Francisco Recorder: records the deed and final documents that make your purchase official.
- Local departments: SF Public Utilities Commission, Treasurer & Tax Collector, and the Rent Board each have rules and documents that can affect closing.
San Francisco escrow timeline
Escrow length depends on financing and negotiation. All‑cash deals can close fast. Financed purchases usually take longer. Below is the typical sequence from acceptance to recording.
Day 0: Contract acceptance
- Escrow opens the same day or next business day.
- Earnest money is due per the contract, often within 24–72 hours.
- Escrow sends wiring or delivery instructions and creates a preliminary settlement estimate.
Days 1–5: Disclosures and title start
- Title search begins and a preliminary title report is ordered.
- Seller delivers required disclosures. If there is an HOA, expect a document package with CC&Rs, bylaws, financials, and rules.
- Buyer schedules inspections quickly within the inspection window.
Common contingency windows
- Inspection: usually 7–17 days from acceptance.
- Loan: usually 17–21 days for underwriting and appraisal.
- Appraisal: typically completed 7–14 days after ordering, often tied to the loan contingency.
- Title review: buyer reviews the preliminary title report and raises objections within the contract’s time frame.
Mid‑escrow: After reviews
- Buyer removes contingencies in writing when satisfied with inspections, loan, appraisal, and title.
- Repairs or credits are finalized, or escrow holdbacks are written if work will continue after close.
- Lender clears final conditions and prepares loan documents.
Closing and recording
- Buyer signs final loan documents and escrow instructions.
- Buyer and lender wire funds to escrow by the stated deadline.
- Escrow disburses funds and records the deed with the San Francisco Recorder. Recording is often the same day or next business day, depending on the calendar and county queue.
- Title insurance policies are issued at closing.
Local rules that affect closing
San Francisco has several local items that often shape escrow timing and cost. Plan for these early.
- Sewer lateral compliance: Many properties require proof of private sewer lateral compliance at sale. Sellers often complete this before listing or arrange an escrow holdback to handle repairs and testing around closing.
- Real Property Transfer Tax: San Francisco charges a local transfer tax. Escrow calculates the tax and collects it at closing. Who pays is negotiated in the contract.
- Tenant protections: For tenant‑occupied properties, local rent ordinances and notice rules can affect logistics, timelines, and any relocation assistance obligations. Make sure your team understands what is required before you set a closing date.
- Seismic retrofit and building notices: Certain multi‑unit properties are subject to retrofit programs or have open notices that must be disclosed and may need action.
- Short‑term rentals, condo conversions, and permits: If relevant, review permits and compliance statements early so there are no surprises at the end.
Earnest money and contingencies
Your earnest money shows good faith and is applied to the price at closing. The contract sets the amount and due date, and Bay Area practice often lands at 24–72 hours after acceptance.
- During contingencies: If you cancel using a valid contingency and follow the notice steps in the contract, your deposit is typically refundable.
- After removing contingencies: The deposit is generally non‑refundable, except for specific contract provisions or seller breach. If the parties disagree, escrow will hold funds until there is a written release or court order.
Always follow the contract’s timing and written notice rules. Your agent and escrow officer will help you track the dates.
Title, recording, and insurance
- Preliminary title report: You review exceptions, liens, easements, and any matters that will remain after closing. Sellers typically clear title issues before or at closing.
- Title insurance: An owner’s policy and a lender’s policy protect against covered title defects. Who pays which policy varies by local custom and negotiation. Premiums are regulated and based on price.
- Recording: The deed is recorded with the San Francisco Recorder, which creates public notice of the change in ownership. Recording fees are handled by escrow.
Buyer checklist
Use this step‑by‑step list to stay ahead of your deadlines.
Right after acceptance
- Confirm the escrow company and officer contact details.
- Send earnest money within the contract’s deadline.
- Schedule home, pest, and any specialty inspections.
- For financing, complete your loan application and submit documents quickly.
Weeks 1–3 of escrow
- Review seller disclosures, the preliminary title report, and HOA documents.
- Decide whether to request repairs, credits, or a price adjustment during the inspection window.
- Ask your escrow officer about sewer lateral compliance and any required certificates.
Before removing contingencies
- Confirm appraisal results and lender underwriting status.
- Verify any title exceptions are resolved or acceptable.
1–3 days before closing
- Complete a final walk‑through.
- Call your escrow officer to verify wiring instructions and the exact cash to close.
- Arrange your final funds transfer early to avoid delays.
Seller checklist
A proactive seller process keeps escrow moving and protects your net.
Before listing or right after acceptance
- Select your preferred escrow/title company.
- Prepare and deliver complete disclosure packages promptly.
- Order or confirm sewer lateral compliance, or plan an escrow holdback if needed.
- If there is an HOA, gather CC&Rs, bylaws, budgets, and meeting minutes.
- Estimate transfer tax with escrow and clarify who pays in the contract.
During escrow
- Resolve title issues and provide payoff statements for any mortgages or liens.
- Coordinate access for inspections and any agreed repair work.
- If tenant‑occupied, confirm required notices and obligations early.
Closing
- Sign seller documents and confirm your preferred proceeds wiring details with escrow by phone.
Common delays and quick fixes
- Sewer lateral certificate not ready: Start early or use a clearly written escrow holdback.
- Tenant logistics: Build in time for notice periods and documentation.
- Title exceptions: Order payoff demands and lien releases as soon as escrow opens.
- HOA documents or estoppel delays: Request full HOA packages at the start of escrow.
- Wire fraud attempts: Confirm all wiring instructions by calling your escrow officer at a known phone number. Do not rely on email links.
Example timelines
- All‑cash, no contingencies: 7–17 days from acceptance to recording, depending on scheduling and county queue.
- Conventional loan with standard contingencies: commonly 30–45 days, with 30 days a frequent target in smoother files.
- Sale‑contingent purchase: 45–60 days or longer, depending on your sale timeline and contract language.
How to read contingencies
Contingencies are your checkpoints. You remove them in writing when satisfied. The most common are inspection, loan, appraisal, and title.
- Inspection: Use this time to understand property condition and negotiate repairs or credits if needed.
- Loan and appraisal: Lender underwriting and the appraisal must support your loan terms.
- Title: Confirm you will receive the ownership and rights you expect without unacceptable encumbrances.
Removing contingencies signals readiness to close. After removal, the deposit is typically at risk if you do not complete the purchase, subject to the contract.
Final thoughts and next steps
Escrow in San Francisco is manageable when you know the sequence, protect your deposit with clear contingency timing, and account early for local items like transfer tax, sewer lateral compliance, and any tenant considerations. With an organized team and proactive communication, you can move from acceptance to recording with confidence.
If you are planning a sale or aiming to buy this season, let a neighborhood‑rooted advisor guide you through the details, timing, and presentation that matter most in San Francisco. Find your San Francisco with Aimee Labagh Tenente.
FAQs
What is escrow in a San Francisco home sale?
- Escrow is a neutral process where a third party holds funds and instructions until all contract conditions are met, then disburses money and records the deed with the county.
How long does escrow take in San Francisco?
- All‑cash deals can close in about 7–17 days, while financed purchases commonly take 30–45 days and sale‑contingent deals can run 45–60 days or more.
When is earnest money refundable in California?
- If you cancel within a valid contingency and follow the contract’s notice rules, your deposit is typically refundable; after contingency removal it is generally not refundable absent seller breach.
Who pays San Francisco transfer tax at closing?
- The payment is negotiable between buyer and seller; escrow calculates the amount and collects and remits the tax at closing based on the final contract.
What local items can delay closing in San Francisco?
- Sewer lateral compliance, tenant protections and notices, HOA documentation, and title defects are frequent causes of delay if not handled early.
Can escrow hold funds for unfinished repairs?
- Yes, escrow holdbacks are common and must include clear written conditions for how and when the funds are released after the work is completed.
How do title and recording work in San Francisco?
- The title company issues a preliminary report and clears issues, then escrow records the deed with the San Francisco Recorder and issues title insurance policies at closing.
What are typical contingency periods in San Francisco?
- Inspection windows often run 7–17 days, loan and appraisal around 17–21 days, and title review occurs in the first couple of weeks per your contract.
