What Is Escrow? A Marin Buyer’s Guide

Buying in Marin can move fast, and the word escrow pops up the moment your offer is accepted. If you have ever wondered where your deposit goes, who handles the paperwork, or what happens between signing and getting the keys, you are not alone. Escrow is designed to protect you and keep the closing on track, but it helps to know how it works here in Marin County. In this guide, you will learn what escrow is, the typical Marin timeline, common costs, and smart local tips to avoid delays and protect your funds. Let’s dive in.

What escrow means in California

Escrow is a neutral third party that holds money and documents until everyone completes their part of the contract. The escrow holder follows written instructions and only releases funds when those instructions are met. This keeps your earnest money secure and makes sure the sale closes correctly.

Escrow is not the same as title insurance or your lender’s servicing escrow for taxes and insurance. Title companies insure ownership, while the lender’s servicing escrow manages future tax and insurance payments after you own the home. The escrow company coordinates the exchange of money and documents for your purchase.

In California, escrow is typically handled by licensed escrow companies or banks. The California Department of Financial Protection & Innovation oversees escrow licensing, and California Association of REALTORS forms are commonly used to set timelines and responsibilities.

Marin escrow timeline, step by step

Every escrow follows the purchase contract, but most Marin deals move through similar stages. Your timing may adjust based on negotiations, lender speed, and property type.

1) Open escrow

Your offer is accepted and your earnest money deposit goes to the escrow holder. You receive a receipt, and escrow opens a file with formal instructions for both sides.

2) Contingency period

You complete inspections, the appraisal happens if you are financing, and your lender begins underwriting. You either remove contingencies or negotiate repairs or credits. The contract sets these deadlines.

3) Title and document clearance

Escrow coordinates the preliminary title report, checks for liens, and requests payoff statements from the seller’s lender. Any issues must be cleared before closing.

4) Final loan approval

If you have a loan, your lender issues final approval and the Closing Disclosure with your final terms and costs. Lenders must provide this document at least three business days before you sign your loan note.

5) Sign and fund

You sign your closing documents, then wire your remaining funds or deliver certified funds as instructed. Your lender wires loan proceeds after all conditions are satisfied.

6) Recording and keys

Escrow submits the deed and loan documents to the Marin County Recorder. Once recorded, escrow disburses funds per the instructions and you receive the keys.

Typical timeframes

• Cash closings: often 5 to 14 business days once contingencies are cleared.
• Financed closings: commonly 30 to 45 days, depending on lender and loan type.
• Contingencies: negotiated in the contract and can be shorter or longer based on market conditions.

Key documents you will see

• Executed purchase agreement and escrow instructions
• Earnest money receipt and deposit confirmation
• Preliminary title report and any exceptions
• Seller disclosures, including the Transfer Disclosure Statement and Natural Hazard Disclosure
• Lender package and the final Closing Disclosure for financed purchases
• Grant deed, notarized, and any loan documents
• Recorded deed and mortgage documents after closing

What escrow costs cover

Your final numbers depend on price, property type, city taxes, and loan terms. Who pays each line item is negotiable and set in your purchase agreement. In Marin, buyers and sellers often split certain fees, but customs vary by town and deal.

Escrow fee

This is the escrow company’s charge for managing the closing. Payment is negotiable between buyer and seller.

Title insurance

Buyers typically purchase an owner’s title policy, and lenders require a lender’s policy if you are financing. Premiums are based on purchase price. Request estimates early so you can budget accurately.

Recording fees

These are charged by the county when your deed and loan documents are recorded. Escrow will include these in your closing statement.

Transfer taxes

County and city transfer taxes may apply and can vary by location in Marin. Who pays is negotiated in the purchase contract. Confirm city-specific tax details early to avoid surprises.

Prorations and adjustments

Property taxes, HOA dues, and some utilities are prorated between buyer and seller based on the closing date. Escrow will show these prorations on your statement.

Lender and buyer closing costs

These may include loan origination fees, appraisal, credit report, homeowners insurance premium, and other settlement charges. Your lender and escrow will provide estimates and final figures.

How funds move and how to stay safe

Your earnest money goes to the escrow holder, who issues a receipt. Near closing, you will wire the rest of your funds or deliver a cashier’s check per the instructions. Escrow then pays off the seller’s mortgage and any liens and disburses remaining proceeds and fees.

Wiring safety matters. Email fraud targeting real estate closings is real. Always verify wiring instructions by calling the escrow company using a known phone number, not one from an email message. If anything changes in wiring instructions, stop and verify again by phone.

Before you sign, ask for an updated settlement statement from escrow. If you have a loan, your lender must provide the Closing Disclosure at least three business days before you sign your note. Review both carefully and ask questions about any differences between earlier estimates and the final figures.

Marin‑specific factors that can affect escrow

Escrow in Marin looks familiar to most California buyers, but a few local factors can change timing, costs, or insurance.

Transfer taxes vary by city

Marin includes multiple cities and special districts. Some municipalities may apply additional documentary transfer taxes or fees. These taxes are often negotiable between buyer and seller. Confirm current rates through official county or city sources during your contingency period.

Septic and well properties

Rural areas and some coastal pockets use septic and well systems. You should verify inspection requirements and any county permits needed for transfer. Repairs or replacements can require approvals from county environmental health and may extend timelines.

Coastal zone and permits

Homes in the coastal zone can have extra disclosure or permitting steps related to the California Coastal Act. If a property is subject to coastal regulations, build in time to review permits and any conditions that could affect your plans.

Wildfire risk and insurance

Many Marin properties sit in higher wildfire hazard zones. Sellers must provide hazard disclosures, and you should review wildfire risk maps, defensible space guidance, and insurance options early. Insurance availability and cost can affect loan approval timing.

HOA documents and estoppels

If you are buying a condo or townhouse, escrow will request HOA documents and estoppel information. These packages can take time to compile and review, so start early to meet your contingency dates.

Unique homes and appraisals

View lots, acreage, and nonstandard structures are part of Marin’s charm. They can also make appraisals more complex. Appraisal reviews are a common reason for extensions or renegotiations when financing is involved.

County recording logistics

Escrow submits documents to the Marin County Recorder for recording. Processing times can affect the day you receive keys. If your move is tight, ask your escrow officer about current recording timelines.

Buyer checklist for a smooth escrow

• Confirm the escrow company’s name and phone number and verify wiring instructions by phone before sending any funds.
• Calendar your contingency deadlines and inspection dates on day one.
• Order a general home inspection promptly; add termite, roof, structural, and septic inspections based on the property.
• Share requested documents with your lender quickly to keep underwriting on track.
• Request insurance quotes early, including wildfire, flood, and earthquake if relevant for your area.
• Review the preliminary title report carefully and ask questions about any exceptions.
• For septic, well, or coastal properties, confirm required permits or approvals with county departments and plan for extra time if repairs are needed.
• Ask escrow for a sample closing statement early and a final statement before signing.
• Bring a valid government ID to signing and have your bank’s wire limits ready if you will wire funds.

Common pitfalls and how to avoid them

• Wiring fraud: Never rely on emailed instructions without voice verification. Call your escrow officer at a known number.
• Misreading “as‑is”: Even if a sale is as‑is, you still have inspection rights and sellers still have disclosure duties in California.
• Tight timelines: Appraisals, HOA documents, payoff demands, and septic repairs can push closing. Build in buffer time for movers and deliveries.
• Unpermitted work: Older Marin homes sometimes include additions without permits. Title exceptions or permit questions can require extra steps, so review disclosures and title early.

How your escrow team supports you

A good escrow officer keeps the details organized, communicates clearly, and coordinates with your agent and lender to meet deadlines. The neutral nature of escrow protects your money until conditions are satisfied and gives you a clear, documented path to closing.

If questions come up, lean on your agent for guidance. Local experience with Marin’s city taxes, septic rules, wildfire considerations, HOA practices, and recording timelines can make the difference between a stressful closing and a smooth one.

Ready for a smooth closing?

You deserve a calm, confident path from offer to keys. If you are planning a Marin purchase and want clear steps, tight timelines, and hands‑on support, reach out to Home in Marin for buyer representation grounded in local expertise.

FAQs

What is escrow in a Marin home purchase?

• Escrow is a neutral third party that holds funds and documents and releases them only when the purchase contract’s written instructions are met.

Who holds my earnest money deposit?

• The escrow holder receives and receipts your deposit, then keeps it secure until you close or cancel per the contract.

How long does escrow take in Marin?

• Cash deals can close in 5 to 14 business days after contingencies, while financed closings typically take 30 to 45 days, depending on lender timing.

Who pays escrow fees and transfer taxes?

• It is negotiable and set in the contract. Local custom sometimes splits certain fees, but buyers and sellers may allocate them differently by deal and city.

What happens if I cannot remove contingencies on time?

• The contract outlines remedies, which can include extensions, cancellations within your rights, or potential deposit risk if you breach. Talk with your agent right away.

Is wiring money safe for closing?

• Yes, when you verify instructions by phone using a trusted number for the escrow company and watch for red flags like last‑minute changes.

What documents will I sign at closing?

• You will sign escrow instructions, loan documents if financing, and transfer documents such as the grant deed, then receive a final settlement statement after disbursement.

When do I get the keys to my Marin home?

• After the Marin County Recorder confirms the deed is recorded, escrow disburses funds and you receive keys as set in your contract.