The Escrow Process

In California, the execution of the purchase documents defining all of the necessary actions for both the buyer and seller will be coordinated by an Escrow Officer assigned to your specific transaction, not a lawyer as is done in some other parts of the US. The actual escrow instructions are part of the purchase agreement you signed when making your initial offer. It is called the California Residential Purchase Agreement and Joint Escrow Instructions (RPA-CA). The Escrow Officer is licensed and employed by a licensed Escrow company or Title company to ensure the timely execution by both parties of the agreed upon real estate transaction.

The Escrow Officer represents the buyer and the seller equally in the transaction, taking specific written instructions from the RPA-CA form. The fully signed offer to purchase (which means that both parties are in agreement as to the price and conditions of sale) gives these specific instructions. Any changes required to those instructions must be in writing and signed by both the seller and the buyer, in the form of amendments to the original document.

All parties are protected because the escrow holder will retain funds and documents until all the escrow instructions are fulfilled.

Tasks which may be required of the Escrow Officer:

1. Prepare and/or receive documents relating to the escrow.


2. Receive and deposit earnest money.


3. Calculate and/or prorate taxes, liens, interest, rents, and insurance policies.


4. Order title search information for payoff of any existing liens.


5. Make arrangements for title insurance protection for the buyer, and lender if any.


6. When conditions have been satisfied, request and receive funding from the new lender or receive a transfer of cash funds, as spelled out in the purchase agreement.


7. Arrange for recording of the conveyance documents and any other legal instruments required to transfer title of the property to buyer, according to the terms of the purchase agreement.


8. Close the escrow, disburse funds as agreed upon in the instructions, and prepare a closing statement for both parties showing disposition of funds.