Buying in Huntington Beach and wondering what really happens after your offer is accepted? You are not alone. Escrow can feel mysterious the first time you go through it, especially with coastal rules and HOA details in the mix. In this guide, you will learn what escrow is, how the timeline works in Orange County, what costs to expect, and the exact steps you and the other party take to close with confidence. Let’s dive in.
Escrow basics: who does what
Escrow is a neutral third party that holds money and documents and coordinates the steps needed to close your purchase or sale. The escrow officer follows the contract and lender instructions, collects signatures, handles payoffs, prorates costs, and arranges recording with the county.
Escrow is different from title. Title companies search public records to confirm ownership, find liens or easements, clear issues, and issue title insurance policies. In many California closings, escrow and title teams work closely to move your file to the finish line.
California regulates escrow and title operations to protect consumers. Most Huntington Beach contracts use standardized forms from the California Association of Realtors. Your deadlines and duties are set by your specific agreement.
Huntington Beach escrow timeline
Every contract is unique, but here is a typical sequence for Orange County. Cash deals can close in 7 to 14 days. Financed purchases commonly take 30 to 45 days.
1) Contract acceptance and opening escrow
Once both parties sign, escrow is opened and assigned a file number. The buyer submits the earnest money deposit within the time in the contract, often 1 to 3 business days. In our area, earnest money is often 1 to 3 percent of the price. For a 1,000,000 dollar home, 1 percent equals 10,000 dollars.
2) Preliminary title report
Escrow orders a preliminary title report. The title search checks for liens, judgments, easements, vesting issues, or other items that must be cleared before closing. If a seller has a mortgage, escrow requests payoff statements.
3) Contingency periods
- Inspection or investigation: Buyers usually have about 17 days in common California forms to complete general and specialized inspections. You can negotiate repairs, credits, or cancel within this window as allowed by your contract.
- Loan: Buyers work through underwriting. Loan contingencies are often 17 to 21 days. Lenders also order the appraisal.
- Appraisal: If the appraisal is low, the parties can negotiate price or credits, the buyer can increase cash to close, or the buyer can cancel if the contract provides that option.
- HOA review: For condos or planned communities, the buyer reviews the HOA resale packet, including CC&Rs, budgets, reserves, and rules. There is often a short review and possible cancellation period tied to those documents.
- Other contingencies: Some contracts include the sale of the buyer’s home. All contingencies must be removed in writing by their deadlines to move forward.
4) Clearing title exceptions
The title company identifies any items that must be addressed, such as liens or old loans that need reconveyance. Escrow coordinates with the parties and lienholders to obtain the needed releases and documents.
5) Final loan approval and disclosures
Once underwriting conditions are met, the lender issues a clear to close. For financed purchases, the lender delivers the final Closing Disclosure at least three business days before signing. Review this for accuracy and ask questions early.
6) Final walkthrough and settlement figures
The buyer completes a final walkthrough, often within 24 to 48 hours of closing, to confirm the property’s condition and agreed repairs. Escrow prepares your final settlement statements so both sides understand credits, prorations, and total funds needed.
7) Signing, funding, and recording
The parties sign the closing documents. The buyer wires the balance of funds per escrow instructions. Always confirm wiring details by calling your escrow officer at a known phone number you already have. The lender wires loan funds, escrow disburses payoffs and fees, then submits the deed to the Orange County Recorder for recording. Keys and possession follow the terms in your contract.
8) After closing
The title company issues the owner’s title policy after recordation. The seller’s loans are paid off and releases are recorded. In California, expect a supplemental property tax bill after a change of ownership. Escrow prorates the standard taxes at closing, but the county issues supplemental bills later.
Local norms and costs in Huntington Beach
- Earnest money: In Orange County, buyers often deposit 1 to 3 percent of the purchase price. In competitive Huntington Beach neighborhoods, buyers may increase deposits or shorten contingency periods to strengthen an offer. Match your strategy to your comfort with risk.
- Who pays what: It is common for the seller to pay for the owner’s title policy and for the buyer to pay for the lender’s title policy. Escrow fees are often split, and other fees are negotiable. Check your contract for the exact allocation.
- Disclosures: Sellers provide the Transfer Disclosure Statement, Natural Hazard Disclosure, lead-based paint disclosure for homes built before 1978, and other required California forms. Coastal homes often involve flood, tsunami, seismic, or liquefaction considerations. Lenders may require flood insurance if a property is in a flood zone.
- HOAs and coastal items: If the property is in an HOA, the seller typically orders the resale packet. Buyers should review CC&Rs, budgets, and rules during the HOA review period. Properties with coastal development permits or local conditions should have those documents disclosed and reviewed.
- Taxes: Proposition 13 limits annual increases to assessed values, but a change of ownership often triggers a supplemental assessment. Budget for a supplemental property tax bill after closing.
What closing costs include
Closing costs vary by deal and are negotiable. Expect items like escrow fees, title insurance policies, county recording charges, and city or county transfer taxes when applicable. Buyers with loans will have lender fees, appraisal, and prepaid items like insurance and property taxes. HOA dues and taxes are prorated to the closing date. Utilities may be settled after final meter reads.
Wire fraud safety checklist
Wire fraud attempts are on the rise. Protect yourself with a few simple steps:
- Call your escrow officer at a known phone number to confirm wiring instructions before sending any funds.
- Never rely only on email for wiring details. Do not use phone numbers provided in an email to verify instructions.
- Use your bank’s two-factor authentication for transfers and keep your email accounts secured with strong passwords.
Buyer checklist: from offer to keys
- Confirm your earnest money amount and deposit deadline. Send the deposit on time.
- Order inspections immediately: general home, pest, and any specialized inspections needed.
- Provide your lender with updated documents right away to keep underwriting on track.
- Review the preliminary title report and ask questions about any exceptions.
- If applicable, review HOA documents, budgets, and rules within the allowed time.
- Verify wiring instructions by phone before sending any money.
- Schedule your final walkthrough 24 to 48 hours before closing.
- Plan for supplemental property taxes after closing and set aside funds.
Seller checklist: smooth closing steps
- Complete and deliver required disclosures promptly, including TDS and NHD.
- Request payoff statements for existing loans and prepare HOA resale documents if needed.
- Resolve known liens or assessments early, or notify escrow so they can coordinate.
- Be ready to respond to repair requests with either repairs or credits.
- Confirm who pays for owner’s title insurance and escrow fees per your contract.
- Arrange to remove personal property and deliver keys based on possession terms.
Common issues and how escrow responds
- Low appraisal: The parties can adjust price, the buyer can add cash, or the buyer can cancel if protected by an appraisal contingency.
- Title exceptions: Escrow and title work together to obtain payoffs and clearances. Unresolved items can delay closing until they are resolved.
- HOA packet delays: If the HOA is slow to deliver documents, the parties may agree to extend deadlines so the buyer has time to review.
- Financing delays: Underwriting conditions, verifications, or missing documents can push timelines. Quick responses from the buyer and lender help keep things moving.
- Contingency disputes: If there is a disagreement about repairs or timelines, escrow holds the deposit while the parties follow the contract process.
Choosing escrow and title
Either side can propose the escrow and title company in negotiations. Work with local, experienced providers who understand Huntington Beach practices. Your agent can recommend trusted teams that communicate well and keep your file on schedule.
Keys, possession, and move-in
Most contracts provide possession at recordation or after funding. Confirm your possession date early so you can coordinate movers, utilities, and any repair crews. The final walkthrough helps confirm the property is in the expected condition before transfer.
Buying or selling in Surf City can move quickly, but a clear plan and the right guidance make the process smooth. If you want a steady advisor who understands Huntington Beach, can explain the process in English or Vietnamese, and keeps you on schedule, connect with The AceEstate Team. We are here to help you close with confidence.
FAQs
How long does escrow take in Huntington Beach?
- Financed purchases commonly take 30 to 45 days, while cash deals can close in 7 to 14 days depending on contract terms and lender needs.
How much earnest money is typical in Orange County?
- Buyers often deposit 1 to 3 percent of the purchase price. In competitive situations, some buyers offer more to strengthen their offer.
When is earnest money refundable during escrow?
- Earnest money is typically refundable while contingencies remain active. After you remove contingencies in writing, the deposit becomes nonrefundable unless your contract provides specific protections.
Who pays for escrow and title in Southern California?
- It is common for the seller to pay for the owner’s title policy, the buyer to pay for the lender’s policy, and for escrow fees to be split. All costs are negotiable in the contract.
What inspections should I order for a Huntington Beach home?
- Common inspections include general home and pest. Depending on the property, you may add roof, sewer, pool, or other specialized inspections within your inspection period.
What happens if the appraisal is lower than the price?
- The parties can renegotiate, the buyer can add cash, or the buyer may cancel if an appraisal contingency is in place and used within the deadline.
When do I get the keys in an Orange County closing?
- Keys and possession are set by your contract. Often, possession is at recordation or after funding, as coordinated through escrow.
