controlled holding period until everyone does what they agreed to do.
THE ESCROW PERIOD
In California, escrow refers to the time between:
1. Acceptance of the purchase offer, and 2. Recording of the deed transferring legal title from seller to buyer During this period, the escrow officer follows written instructions from both parties, collects required funds, coordinates documents, and ensures all conditions—such as contingencies, disclosures, and lender requirements—are satisfied.
EARNEST MONEY EXPLAINED
The earnest money deposit is placed into escrow shortly after offer acceptance (typically within 3 business days, unless otherwise negotiated). Important legal points: • Earnest money does not automatically belong to the seller • If the buyer cancels the contract within contingency periods, the deposit is generally refundable • Once contingencies are removed, the deposit may be at risk if the buyer fails to perform At closing, the earnest money is credited toward the buyer’s costs, such as the down payment and closing expenses—it is not an extra fee.
THE ESCROW OFFICER'S ROLE
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