What Is Escrow in California Real Estate?
Escrow keeps your home sale safe for both sides. Here's what it means and how it works in California.
Last updated November 2026
Escrow meaning
Escrow is an arrangement where a neutral third party holds money and documents until every condition of the sale is met.
When everything is done, the funds and the deed are released at the same time.
What "in escrow" means on a listing
A home "in escrow" has an accepted offer and an open escrow, but the sale hasn't closed yet.
How escrow works in California
- The offer is accepted and escrow opens.
- The buyer delivers the deposit to escrow.
- The buyer completes inspections and the loan and appraisal, then removes contingencies in writing.
- The title company prepares the preliminary title report.
- Buyer and seller sign, the lender funds and the deed records.
- Escrow disburses the funds.
Who's involved
- Buyer and seller
- Their real estate agents
- The escrow officer, who manages the file
- The title company, which handles title and recording
- The buyer's lender, if there's a loan
Escrow vs. an escrow (impound) account
A mortgage impound account is something your lender keeps after closing to pay property tax and insurance. That's different from a purchase escrow.
How long escrow takes
A typical escrow takes 30 to 45 days. See the escrow timeline.
What escrow costs
Each escrow company sets its own fees. See escrow fees in California.
Escrow FAQ
What is escrow in real estate?
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Escrow is an arrangement where a neutral third party holds money and documents until every condition of the sale is met. Then the funds and the deed are released at the same time.
What does "in escrow" mean on a listing?
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It means the seller accepted an offer and escrow has opened, but the sale hasn't closed yet.
How long does escrow take in California?
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A typical escrow takes 30 to 45 days, but it can range from a few days to several months.
Is escrow the same as an impound account?
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No. An impound account is something your lender keeps after closing to pay property tax and insurance. A purchase escrow ends when the sale closes.
Ready to open escrow?
This guide is general information, not legal or tax advice. Customs vary by county, and every cost is negotiable in your purchase agreement.