How Escrow Works In Sonoma County

Buying or selling in Sonoma County and not sure what escrow actually does? You’re not alone. Escrow is the bridge between your signed offer and the moment you get keys, and it can feel opaque if no one explains the steps. This guide breaks down how escrow works in California with Sonoma‑specific timelines, costs, and common issues like wildfire insurance and septic systems. You’ll see who does what, when things happen, and how to keep your closing on track. Let’s dive in.

What escrow is in California

Escrow is a neutral third party that holds money, receives documents, and follows written instructions signed by you and the other party. The escrow holder does not give you title. Title transfers only when the deed records at the Sonoma County Recorder’s office.

In California, escrow companies and escrow agents operate under state oversight. Title companies issue title insurance after a title search. While some firms offer both services, escrow and title are different roles. It’s smart to confirm your escrow company is licensed and insured and that your title company explains any exceptions on the preliminary title report.

Sonoma County escrow timeline

Exact timing is set in your purchase agreement, but most financed purchases close in about 30 to 45 days. Cash deals can close faster, often 7 to 14 days, if title clearing and payoffs are simple. Here is a typical flow so you know what to expect.

• Day 0: Offer accepted and escrow opens. You receive an escrow number and wiring instructions and then deposit your earnest money.
• Days 1–3: Escrow sends instructions. Title is ordered. The seller begins delivering required disclosures and any known reports.
• Inspection window: Commonly 7 to 17 days. You schedule a general home inspection, pest inspection, and any needed specialty inspections like septic, well, roof, chimney, or HVAC.
• Loan and appraisal: Loan contingency is often 17 to 30 days, depending on your lender and contract. Your lender orders the appraisal during underwriting; most appraisals complete 7 to 21 days after order.
• Title review: The preliminary title report usually arrives within a few days of opening escrow. You and your lender review liens, easements, and exceptions. Escrow works with title to clear items or obtain demands.
• Contingency decisions: You negotiate repairs or credits based on inspections and remove contingencies in writing by the deadlines. If issues need more time, you request an extension in writing.
• Clear to close: Your lender issues the clear to close. Escrow balances the file, collects your remaining funds, and prepares final statements for signatures.
• Close of escrow: The deed records with Sonoma County. Escrow disburses funds, the seller receives proceeds, and you get keys per the contract.

Always verify the exact dates in your signed agreement. Missing a deadline can affect your rights or your deposit.

Buyer checklist

• Deposit earnest money per contract timelines.
• Book a general home inspection and pest inspection right away; add specialty inspections (septic, well, roof, chimney, HVAC) as needed.
• Get homeowner’s insurance quotes early. Wildfire coverage is a priority in many parts of Sonoma County.
• Provide all lender documents quickly and stay responsive for underwriting conditions.
• Review the preliminary title report and any HOA documents.
• Complete your final walkthrough before closing.
• Remove contingencies or request extensions before deadlines in writing.

Seller checklist

• Deliver required disclosures, including the Transfer Disclosure Statement, Natural Hazard Disclosure, and any known reports.
• Provide access for inspections and appraisals.
• Share HOA documents, septic permits, and maintenance records if requested.
• Respond to repair requests or negotiate credits within agreed timelines.
• Provide payoff information for existing loans and sign closing documents promptly.

Who does what in escrow

• Buyer: Arrange financing, order inspections, secure insurance, deposit funds, remove contingencies, and approve the final figures.
• Seller: Provide full disclosures, keep the property available, and sign the deed and closing documents.
• Buyer’s and seller’s agents: Coordinate inspections, track deadlines, deliver documents to escrow and title, and help negotiate repairs or credits.
• Escrow officer: Hold funds, prepare escrow instructions and settlement statements, obtain payoff demands, coordinate signatures, and manage recording and disbursement.
• Title company: Research the chain of title, issue the preliminary title report, help clear certain title issues, and issue title insurance at closing.
• Lender: Underwrite the loan, order the appraisal, clear conditions, and fund when all requirements are met.
• County offices: The Recorder records deeds and deeds of trust, the Assessor updates the tax roll, and the Tax Collector bills property and supplemental taxes.
• Inspectors and specialists: Home, pest, septic, well, roof, chimney, HVAC, and wildfire mitigation vendors provide reports that inform your decisions.

Sonoma‑specific issues to watch

Wildfire risk and insurance

Wildfire exposure varies across the county, and insurers price and underwrite accordingly. Lenders require property insurance in place before closing. Start quotes early and be ready to discuss construction type, defensible space, and proximity to wildland. In some cases you may need specialized or surplus lines coverage. Build time into your timeline so insurance does not delay funding.

Natural Hazard Disclosure

California sellers must provide a Natural Hazard Disclosure that addresses wildfire zones, flood zones, earthquake fault zones, and other hazards. In Sonoma County, river floodplains, hillside areas, and high fire severity zones are common considerations. Review the report closely so you understand practical implications for insurance, maintenance, and future improvements.

Septic and well systems

Many homes outside city sewer and water rely on septic systems and private wells. You should order a septic inspection and request maintenance records and permits. Verify septic permit status with county departments and confirm system capacity for your planned use. For wells, arrange water quality testing and a yield check. Findings can affect negotiations and may require more time within your inspection period.

HOAs and CC&Rs

If you are buying a condo or a home in a planned development, review HOA documents as a standard contingency. Pay attention to budgets and reserves, any pending or past litigation, rules and use restrictions, and transfer fees. Confirm monthly dues and any special assessments so you can plan your budget.

Title exceptions and rural land

Sonoma County includes agricultural zones and winery‑related operations. Title reports may show easements, private road agreements, or agricultural contracts like the Williamson Act. Read exceptions carefully and ask for clarification before removing contingencies so you understand any use restrictions or tax implications.

Local taxes and assessments

California property taxes are based on Proposition 13 plus local voter‑approved assessments. Some neighborhoods may have special district assessments or Mello‑Roos for roads, flood control, or community facilities. You may also receive supplemental tax bills after closing when the assessor updates the property value. Recording fees and any city or county transfer taxes are part of the settlement and are allocated by local custom or as negotiated in the contract.

Earnest money, fees, and closing costs

Earnest money deposits

Earnest money is the good‑faith deposit you place into escrow after your offer is accepted. In many California markets, it is often 1 to 3 percent of the purchase price, though it can be a flat amount or higher in competitive situations. Escrow holds the deposit and applies it to your funds at closing.

If you cancel within a valid contingency period according to the contract, your deposit is typically returned. If you remove contingencies and then do not perform, the seller may seek the deposit as liquidated damages, depending on the contract and circumstances. Always follow the contract’s written procedures for contingency removal or cancellation.

Who pays which fees

Payment customs vary by county and are negotiable. In many Northern California transactions, the buyer commonly pays the lender’s title insurance policy and the seller often pays the owner’s title policy. Escrow fees are often split. Recording fees and transfer taxes are set by government schedules and assigned by local custom or by agreement in your contract. Your escrow officer will prepare a draft settlement so you can review how costs are allocated.

Common delays and how to avoid them

Delays usually come from a handful of predictable areas. Knowing them helps you build a smooth plan.

• Loan underwriting: Missing documents, income verification issues, or new credit activity can create last‑minute conditions.
• Appraisal hurdles: Low valuations or required appraisal revisions may extend timelines.
• Title issues: Liens, unpaid taxes, or easements that need signatures can take time to clear.
• Insurance: Wildfire underwriting or carrier availability can slow funding if you start too late.
• Septic and well: Required repairs or missing permits can push inspections and approvals.
• Recording: Stale payoff statements or missing signatures can delay the recording appointment.

You can reduce risk by getting pre‑approved early, ordering inspections on day one, starting insurance quotes immediately, and using a local title and escrow team that understands Sonoma County recording and tax requirements. Keep communication open and confirm every deadline in writing.

How Merge Real Estate helps you close

You want a steady process from offer to keys. A local, detail‑oriented team makes that easier. At Merge Real Estate, you get practical help at each step:

• Local vendors: We can refer reputable Sonoma County escrow and title partners, home inspectors, septic and well specialists, pest firms, and insurance brokers who understand wildfire coverage.
• Deadline control: We track inspection, appraisal, loan, and contingency dates and help you submit extensions or removals on time.
• Repair and credit negotiation: We coordinate reports, advise on options, and prepare clean addenda so agreements are clear.
• County and permit navigation: We help gather septic or well permit records and work with county offices when documentation is needed.
• Title and insurance coordination: We liaise with your lender, escrow, and title to clear exceptions and confirm insurance for funding.

If you want a clear, calm path to closing in Sonoma County, talk with our team at Merge Real Estate.

FAQs

What is escrow and when does it start?

• Escrow starts when the seller accepts your offer and a neutral escrow holder opens a file to manage funds, documents, and the path to recording.

How much earnest money is typical in Sonoma County?

• Many buyers deposit about 1 to 3 percent of the purchase price, though the amount is negotiable and set in the offer.

What inspections should I order locally?

• Most buyers start with general home and pest inspections and add septic, well, roof, chimney, and HVAC based on the property’s features and location.

Who pays title and escrow fees here?

• Customs vary, but buyers commonly pay the lender’s title policy and sellers often pay the owner’s policy, with escrow fees often split and all items negotiable.

What are common contingency timeframes?

• Inspection windows often run 7 to 17 days, loan contingencies 17 to 30 days, and appraisals complete about 7 to 21 days after ordered, subject to the contract.

How does wildfire risk affect closing?

• Lenders require insurance, so high wildfire risk can affect availability and price; start quotes early so insurance does not delay funding.

What happens to my deposit if the deal falls through?

• If you cancel within a valid contingency period per the contract, deposits are typically refunded; after removals, the seller may pursue liquidated damages.

How long does closing take with a loan or cash?

• Financed purchases commonly close in 30 to 45 days; cash purchases can close in 7 to 14 days if title and payoffs are clear.

How are property taxes and assessments handled at closing?

• Escrow prorates property taxes and includes any local assessments or transfer taxes per county schedules and your contract.

Where does the deed record and when do I get keys?

• The deed records at the Sonoma County Recorder, and you receive keys per the contract once escrow confirms recording and funds disburse.