Wondering what actually happens after your offer is accepted in Paso Robles? You are not alone. Escrow can feel like a black box, especially with rural properties, wells, and vineyard details in the mix. In this guide, you will get a clear, step-by-step look at the local process, what to expect on timing, and how to keep your closing on track. Let’s dive in.
Escrow basics in California explained
Escrow is a neutral service that manages money, documents, and deadlines so a home can legally change hands. The escrow officer follows your signed purchase agreement and written instructions from you, the other party, and any lender. Their job is administrative and neutral.
In California, escrow is typically handled by licensed escrow officers at title companies or independent escrow firms. They hold your earnest money, gather disclosures and reports, coordinate with the lender and title, prepare documents for recording, and disburse funds at closing once all conditions are met.
What escrow does for you
- Holds and accounts for deposits and closing funds.
- Collects required disclosures and reports for review.
- Tracks contingency deadlines and written approvals.
- Coordinates appraisal, loan documents, and payoff figures.
- Arranges recording with the county and releases funds when closing conditions are complete.
California rules that shape escrow
- Sellers must provide state-required disclosures early in escrow. Buyers review these during the investigation period under California Civil Code requirements.
- If you have a lender, federal rules require your lender to deliver a Closing Disclosure at least 3 business days before closing. This affects when you can sign and fund.
- Fee splits are negotiable. Some costs, such as owner’s title policy or escrow fees, often follow local custom but the contract controls the final allocation.
The Paso Robles twist: local factors
Paso Robles follows California practice, but local property types often add steps. Many homes outside city limits rely on private wells and septic systems. Buyers commonly order a well yield and water quality test, plus a septic inspection or percolation test. County environmental health requirements can influence timelines if repairs or permits are needed.
Agricultural features also matter. Vineyard leases, water rights, and farm equipment can require separate review and add title details that take time to clarify. Some parcels may be enrolled in the Williamson Act or have agricultural easements. These should appear on the preliminary title report and should be reviewed early.
Inside city limits, utility providers and permitting differ from county areas. Confirm the water district, sewer or septic, and any assessment districts early. Also expect standard California disclosures, including a Natural Hazard Disclosure that covers items like flood, fire, and seismic zones.
Finally, plan around local recording practices. Escrow prepares documents for recording with the San Luis Obispo County Recorder. Recording times can vary by volume or holiday schedule, so leave room for 1 to 3 business days after funding.
Your 30-day escrow roadmap
A 30-day escrow is common for well-prepared buyers using conventional financing. The exact schedule depends on your contract and lender.
| Timing | Buyer and Seller Milestones |
|---|---|
| Day 0 to 3 | Offer accepted, escrow opened, earnest money delivered. Buyer applies for loan and orders inspections. |
| Days 7 to 14 | Inspections completed. Repair requests or credits discussed. Lender orders and receives appraisal. |
| Days 14 to 21 | Negotiate and sign any repair or credit amendments. Appraisal and underwriting continue. |
| Days 21 to 28 | Remove contingencies per contract once satisfied. Lender issues clear to close. |
| Days 28 to 30 | Final walkthrough, signing, funding, and recording. Keys released at recording. |
Tip: Contingency dates are strict. Put them on a shared calendar and confirm reminders with your agent and escrow.
When 45 days makes sense
Some transactions need more time. VA or USDA loans, complex title issues on rural parcels, or appraisals with unique property features can stretch timelines. A 45-day escrow follows the same steps with more room for underwriting, appraisal scheduling, and any third-party approvals.
Key contingencies and deadlines
- Inspection contingency: often 10 to 17 days, depending on your offer.
- Loan contingency: commonly 21 to 30 days, based on your lender.
- Appraisal: typically returns 1 to 2 weeks after ordering and is often tied to the loan contingency.
Your signed purchase agreement sets exact timing. If dates need adjustment, use a written addendum before a deadline expires.
Buyer checklist: what to do and when
Day 0 to 3
- Deliver your earnest money to escrow as the contract requires.
- Submit your full loan application and documents to your lender.
- Order a general inspection and any specialty inspections like pest, roof, or HVAC.
- For rural properties, order well yield and water quality testing, plus a septic inspection or percolation test.
Within the inspection period
- Review inspection reports and seller disclosures. Ask questions early.
- Decide on repair requests or credits and send them in writing within your deadline.
Appraisal and underwriting
- Respond quickly to lender requests for income or asset documents.
- Track the appraisal progress and be ready to discuss options if the value comes in low.
Pre-closing
- Review your Closing Disclosure when it arrives. You must receive it at least 3 business days before closing if you have a lender.
- Arrange homeowner’s insurance for your closing date.
- Complete the final walkthrough 1 to 3 days before closing.
- Wire remaining funds per escrow’s secure instructions or bring certified funds as directed.
Seller checklist: what to do and when
After acceptance
- Deliver required disclosures promptly, including the Transfer Disclosure Statement and any local items.
- Provide open access for inspections and the appraisal.
- Contact your mortgage servicer to obtain payoff figures and any required statements.
During the inspection period
- Review and respond to buyer repair requests. Document any agreements in writing.
- Gather records for repairs, permits, and warranties that buyers may request.
Pre-closing
- Complete agreed repairs and keep receipts for verification.
- Prepare keys, remotes, codes, and manuals for the buyer.
- Sign your closing documents with escrow and confirm your net proceeds statement.
- Move out per the possession date in the contract.
Day of closing
- Confirm escrow recorded the deed and disbursed funds.
Common hiccups and how to avoid them
- Low appraisal: Options include a price adjustment, buyer cash to bridge a gap, or a reconsideration of value by the lender. If your contract includes an appraisal contingency, you may also have a termination option.
- Incomplete lender file: Delays often come from missing income or asset documents. Send requested items right away and keep communication open.
- Title surprises: Old liens, easements, or unresolved permits can slow closing. Review the preliminary title report early and address flagged items quickly.
- Well or septic issues: Order tests and inspections immediately for rural parcels. If repairs are required, get estimates fast to keep timelines on track.
- Last-minute repairs: Schedule contractors early and complete work before the walkthrough. Share receipts and photos with the other party and escrow.
Who pays what in California
Many line items are negotiable. Sellers commonly pay real estate commissions and often the owner’s title policy. Buyers typically cover lender fees, some escrow charges, and recording fees for the loan. Transfer taxes and other costs vary by local practice and the contract. Always rely on your purchase agreement and the escrow closing statement for the final allocations.
Closing day in San Luis Obispo County
Expect a final walkthrough just before closing to confirm agreed repairs and property condition. Signing typically happens near the end of escrow once your lender issues clear to close. After signing, the lender funds and escrow submits documents to the county for recording. Local recording times can vary, so plan for 1 to 3 business days in normal conditions. Ownership transfers at recording, and keys are released when escrow confirms recordation.
Work with a local, high-touch team
A smooth escrow starts with clear expectations, on-time documents, and strong local relationships. That is where a boutique, consultative approach makes a real difference. With deep Central Coast experience, proactive timeline management, and a trusted network of local inspectors, lenders, and escrow officers, you can reduce surprises and close with confidence. If you are planning a sale or purchase in Paso Robles, connect with the team at Joshua Farris Real Estate Advisors for a tailored plan and concierge-level guidance through escrow.
FAQs
What is escrow in California real estate?
- It is a neutral process where a licensed escrow officer holds funds, tracks documents and contingencies, and coordinates recording and disbursement according to the signed contract.
How long does escrow take in Paso Robles?
- Many transactions close in 30 to 45 days, with shorter timelines for cash and longer timelines for complex loans or rural property issues.
What inspections are common for rural Paso Robles homes?
- Buyers often order general, pest, roof, and HVAC inspections plus well yield and water quality testing and a septic inspection or percolation test.
What happens to my earnest money if I cancel?
- If you cancel within a valid contingency period and follow notice rules, deposits are typically refundable; after removing contingencies without legal basis, you risk losing the deposit.
When will I receive the Closing Disclosure?
- If you have a lender, you must receive the Closing Disclosure at least 3 business days before your closing appointment.
Who pays which closing costs in California?
- It depends on your contract; sellers often cover commissions and an owner’s title policy, while buyers typically pay lender fees and some escrow and recording charges.
What if the appraisal comes in low?
- You can renegotiate price, add cash, request a reconsideration of value from the lender, or cancel if your appraisal contingency allows it.
