Selling a home
What Happens at Closing in California
How a California escrow closes, from signing to funding to recording, and when sellers get paid and buyers get keys.
What does closing mean in California?
In California, closing is called close of escrow. It isn't one meeting around a table. It's a series of steps that ends when the deed is recorded with the county. Once the deed records, the buyer owns the home and the seller's money is released.
Buyer and seller usually sign on different days, in different places. Nobody has to sit in the same room. This guide walks through each step from both sides. It's general information, not legal advice.
What does escrow do?
Escrow is a neutral third party. It holds the buyer's deposit, the loan money and the signed documents. It releases them only when every condition in the escrow instructions is met.
The California Department of Financial Protection and Innovation explains that escrow in California is either licensed or controlled (checked October 22, 2026). An independent escrow company is licensed by the DFPI. A controlled escrow is run by a title company, a broker, an attorney or a bank and is overseen by that business's own regulator. You can look up an independent escrow company on the DFPI's licensee list.
Over the weeks of escrow, the escrow officer:
- Holds the buyer's earnest money deposit
- Orders the title report and the seller's loan payoffs
- Collects HOA documents and any other required papers
- Prepares the closing statements for both sides
- Gathers signatures and the lender's funds
- Sends the deed to be recorded and pays everyone
What is title insurance, and why does the title report matter?
Soon after escrow opens, the title company sends a preliminary report. It lists who owns the home and anything recorded against it. That can include loans, liens, easements and judgments.
Read it early. A forgotten equity line, an old lien or a name that doesn't match can take weeks to clear. Finding it in week one keeps it from delaying closing.
The California Department of Insurance explains (title insurance brochure, June 2023) that there are two kinds of policy. A lender's policy protects the lender's loan, not you. An owner's policy protects the buyer against covered title problems that were unknown at closing. Who pays the premium is set by local custom, not law. The premium is paid once, at the close of escrow.
What happens in the last week before closing?
For the buyer. The CFPB says your lender must give you a Closing Disclosure at least three business days before you close on the loan (page modified September 6, 2024). It shows your final loan terms and costs. Compare it with your Loan Estimate. Our page on the Loan Estimate and Closing Disclosure shows what to check.
The buyer also does a final walk-through. It confirms the home is in the condition agreed on and that any agreed repairs were done.
For the seller. You'll get an estimated settlement statement. Check the price, the commission, the payoff and every credit. Finish any agreed repairs and keep the receipts. Plan your move for before the possession date in your contract.
For both. Answer escrow and the lender the same day they ask. A document sitting in someone's inbox is a common cause of last-week delays.
What do you bring to sign closing papers?
Signing usually happens at the escrow office, or with a mobile notary at your home. Documents that get recorded, like the deed, have to be notarized.
Bring:
- A current government photo ID that matches the name on title or the loan
- Any documents escrow asked for, such as a trust certification or power of attorney
- Your wire or payout instructions, confirmed by phone with escrow
- For buyers, proof that your cash to close was sent, if it went ahead of time
Out of town? Escrow can arrange a mobile notary where you live. Ask early so the signed papers make it back in time. Our guide on selling a parent's home from out of town covers that. If someone signs for a parent, see selling with a power of attorney or conservatorship.
Protect your money from wire fraud
Scammers send fake emails that look like they came from escrow, with new wiring instructions. Money wired to the wrong account can be very hard to get back.
- Get escrow's phone number from your contract or our office. Never from an email.
- Call that number to confirm wiring instructions before you send a dollar.
- Treat any change in instructions as a warning sign. Escrow companies rarely change them.
- Sellers, confirm your own payout instructions by phone the same way.
If you think you've sent money to the wrong place, call your bank and escrow right away.
What are funding and recording?
These are the last two steps, and they happen close together.
- Funding. After everyone signs, the buyer's lender reviews the signed package and sends the loan money to escrow. A cash buyer's funds are already there.
- Recording. Escrow sends the deed and the new loan documents to the county recorder. In Sacramento County that's the Clerk-Recorder. Transfer tax is paid at this step. Once the deed records, the sale is closed.
Your purchase contract names the closing date. A loan that doesn't fund in time is a common reason that date slips.
When does the seller get paid after closing?
After recording, escrow pays off your loan and the other costs on your statement. Then it sends you what's left. Your closing statement shows every line.
How and when the money arrives depends on the escrow company and how you asked to be paid. A wire is usually faster than a check. Ask your escrow officer before you sign: "When and how will you send my funds after recording?" Get the answer in writing if you're counting on the money to buy your next home.
Buying and selling at once? We line up both escrows so the money from the sale is ready for the purchase. Our guide on selling first or buying first lays out the options.
When does the buyer get the keys?
The purchase contract says when the buyer takes possession. Often that's on the day escrow closes, at a set time. Sometimes it's a few days later.
If the seller needs to stay after closing, that should be written as a separate agreement. Our guide to rent-backs after the sale explains how that works.
Sellers, leave every key, garage remote, gate fob and mailbox key. A short note on how the sprinklers and the thermostat work is a kind touch.
What can delay closing?
- The loan. A late appraisal, a low appraisal or a missing document can push funding back.
- Title. An old lien, an equity line that wasn't closed or a name mix-up.
- Authority to sign. A trust, an estate or a power of attorney that title hasn't approved. Our trust sale guide and probate and trust page cover what title asks for.
- Repairs. Agreed work that isn't finished, or receipts that weren't provided.
- Insurance. A buyer who can't get a homeowner's policy in time. See our guide on homeowners insurance, the FAIR Plan and wildfire.
- HOA documents that arrive late.
Most of these can be found in the first week if someone looks. We check the title report, the loan file and the HOA order right away.
How do you get started on a closing that stays on schedule?
Because Maggie is a mortgage broker as well as a real estate broker, we read the buyer's loan before you accept an offer. That protects the closing date. You're free to use any lender you like. If you want us for the loan too, the offer and the financing come from one plan.
Send us a note or call Maggie at (916) 549-3131. Our pages on how selling works and how buying works show the whole timeline. The Home Seller's Guide and Home Buyer's Guide are free.
Frequently Asked Questions
Do buyers and sellers sign at the same time in California?
Usually not. In California escrow, each side signs separately, often on different days. The sale closes when the deed records with the county.
What is close of escrow?
It's the moment the deed is recorded with the county. After that, the buyer owns the home and escrow pays the seller and everyone else on the closing statement.
How soon before closing do buyers get the Closing Disclosure?
The CFPB says the lender must give it to you at least three business days before you close on the loan.
When does the seller get the money?
After the deed records and escrow pays the loan and costs. Timing depends on the escrow company and whether you're paid by wire or check, so ask your escrow officer before you sign.
What should I bring to sign closing documents?
A current government photo ID, any papers escrow requested, such as a trust certification, and payout or wire instructions you've confirmed by phone.
Can I sign closing papers if I live out of state?
Yes. Escrow can arrange a mobile notary where you are. Set it up early so the originals get back in time.
Who pays for title insurance in California?
The California Department of Insurance says it's set by local custom, not by law. It can be the buyer, the seller or both. Your purchase contract says who pays in your sale.
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