Buying a home in Sonora and hearing the word “escrow” everywhere? You’re not alone. If you’re a first-time or out-of-area buyer, California’s escrow process can feel unfamiliar at first. In this guide, you’ll learn what escrow is, who does what, how the timeline works, and what to watch for in Tuolumne County so you can move from accepted offer to recorded deed with confidence. Let’s dive in.
What escrow means in California
Escrow is a neutral third-party service that holds funds and documents while you and the seller complete the conditions in your purchase contract. The escrow holder follows written instructions, coordinates lien payoffs, prepares your settlement statement, and arranges recording of the deed before disbursing funds.
In California, escrow may be handled by an independent escrow company or a title company’s escrow department. These services operate under state law and are regulated. Escrow is neutral and does not represent either side unless separately engaged for representation.
Key players and roles
- Buyer: deposits earnest money, completes inspections, obtains financing, removes contingencies, and funds closing.
- Seller: provides disclosures, ensures clear title, signs documents, and delivers possession per the contract.
- Escrow officer: opens escrow, holds funds, coordinates documents, and closes when all instructions are met.
- Title company: runs the title search, issues a preliminary title report, and provides title insurance.
- Lender: underwrites your loan, orders the appraisal, and sends loan documents to escrow.
- Real estate agents: guide negotiations, manage timelines, and coordinate inspections and paperwork.
- County Recorder: records the deed, which makes your ownership official.
Your escrow timeline in Sonora
Escrow officially begins when the seller accepts your offer and the escrow holder receives instructions to open the file. From there, several steps happen at once. Your contract sets the deadlines, but the ranges below are common in California and reflect typical expectations for Sonora.
1) Offer accepted and escrow opened
- You and the seller sign the purchase agreement.
- You place your earnest money into escrow, often within 1–3 business days of acceptance, as specified in the contract.
- Escrow assigns an escrow number and starts the file.
2) Title work and disclosures (days 0–10)
- Escrow orders a title search and a preliminary title report.
- The seller provides required disclosures such as the Transfer Disclosure Statement and Natural Hazard Disclosure. If the home was built before 1978, a lead-based paint disclosure applies.
- Your agent confirms contingency timelines with all parties.
3) Inspections and contingencies (about 7–21 days)
- You schedule a general home inspection and any specialty inspections needed, such as septic, well, roof, pest/wood-destroying organism, chimney, or HVAC.
- You review findings and, within your contingency periods, you may request repairs or credits, proceed as-is, or cancel if allowed by the contract.
4) Loan underwriting and appraisal (often 14–45 days)
- Your lender orders the appraisal and completes underwriting.
- Respond quickly to lender document requests to keep things on schedule.
5) Title review and clearing exceptions (concurrent)
- Review the preliminary title report to understand easements, liens, and exceptions.
- Any liens or issues are addressed so the deed can record with clear title.
6) Final walkthrough and funding (1–5 days before close)
- You do a final walkthrough to confirm the property’s condition.
- Your lender issues final approval to fund. You send your closing funds to escrow by verified wire or cashier’s check.
7) Closing and recording
- You sign your loan and closing documents. The seller signs the deed and related forms.
- Escrow records the deed with the Tuolumne County Recorder.
- Funds are disbursed and you receive your final closing statement.
Typical timing
- Cash purchases: often 7–21 days, if inspections and title are straightforward.
- Financed purchases: commonly 30–45 days, depending on loan type and underwriting.
- Contingencies: inspection periods are often 7–21 days, with loan and appraisal timelines typically aligned around 17–21 days.
Your money in escrow
Earnest money deposit
- Purpose: Your deposit shows good faith and is held in escrow.
- Amount: Often about 1–3 percent of the purchase price, but this varies by property and market conditions.
- Timing: Usually due within 1–3 business days after acceptance, per your contract.
- Refundability: Generally refundable if you cancel within valid contingencies. Once contingencies are removed, the deposit may be at risk if you breach the contract.
Title insurance and escrow fees
- Title insurance: Two policies are common. An owner’s policy helps protect your ownership interest. A lender’s policy protects the lender.
- Who pays: In California, it varies by county and negotiation. Sellers often pay for the owner’s policy and buyers typically pay for the lender’s policy, but your contract controls the final arrangement.
- Other costs: Escrow fees, recording charges, transfer taxes where applicable, prorated property taxes and HOA dues if relevant.
Safe payments and wiring
- Escrow will give you exact funding instructions.
- Always verify wiring instructions by calling your escrow officer at a number you independently confirm. Wire fraud targets real estate closings, so double-check before sending any funds.
Wire safety checklist
- Call your escrow office using a trusted, independently sourced phone number to confirm instructions.
- Verify account name, number, and routing details out loud with the escrow officer.
- Send a small test wire if advised and feasible, then confirm receipt before sending the balance.
- Reconfirm instructions if you receive any change notice by email.
Contingencies and disclosures to know
Contingencies are your contract-defined safety nets and timelines matter. Common ones include inspection, loan, appraisal, and title. If an issue arises and you act within your contingency period, you can often renegotiate or cancel with a return of your deposit.
California requires several disclosures. You will receive a Transfer Disclosure Statement describing known property conditions, a Natural Hazard Disclosure that notes whether the home is in mapped flood, seismic, or wildfire zones, and a lead-based paint disclosure for homes built before 1978. Review these early and ask questions as needed.
Sonora and Tuolumne County specifics
Buying in the Sierra Foothills adds a few local considerations:
- Wildfire risk: Many properties sit in mapped Fire Hazard Severity Zones. Review your Natural Hazard Disclosure and consider insurance implications.
- Rural systems: Properties outside city limits often have wells and septic systems. Order well flow and water quality tests, and schedule septic inspection and pumping.
- Access and roads: Confirm if roads are public or private, winter access patterns, and whether there is a road maintenance agreement for private roads.
- Older homes: Some Sonora-area homes are older. Consider pest/termite inspections and evaluations of electrical and plumbing systems.
- Permits and records: Verify permits for additions or renovations with county departments. Unpermitted work can affect financing, insurance, and resale.
- HOAs and CC&Rs: If the property is in an association, escrow must collect governing documents and fee statements that can impact your timeline and budget.
Out-of-area buyer checklist
- Schedule a thorough general inspection plus septic, well, pest, roof, chimney, and HVAC specialists as needed.
- Ask escrow about remote signing and notarization options if you cannot attend in person.
- Keep a master calendar of contingency deadlines based on your contract.
- Confirm escrow wiring instructions by phone using a verified number before sending funds.
- Ask your agent about typical earnest money ranges and who commonly pays which title and escrow fees in this market.
- Review county property records for permits, easements, and recorded documents that affect the property.
- Read the Natural Hazard Disclosure and consider wildfire preparedness and insurance.
- If financing, reply to lender requests quickly to avoid underwriting delays.
Avoid these pitfalls
- Missing contingency dates by a day. Track deadlines carefully and request extensions in writing if needed.
- Assuming utilities are standard. Verify well, septic, propane, and power service early in escrow.
- Overlooking title exceptions. Read the preliminary title report and address questions promptly.
- Skipping specialized inspections. In rural settings, septic and well inspections are critical.
- Falling for wire fraud. Never rely on emailed wiring changes without verifying by phone with escrow.
Close with confidence
Escrow exists to protect both sides and make sure every condition is met before money changes hands and the deed records. With a clear plan, timely inspections, and strong communication, you can keep your Sonora purchase on track and cross the finish line with confidence. If you want a calm, local guide from offer to keys, connect with Kristin Frankhauser for step-by-step support.
FAQs
How long does escrow take for a Sonora home purchase?
- Cash deals often close in 7–21 days, while financed purchases commonly take 30–45 days, depending on inspections, underwriting, and title.
When is my earnest money deposit refundable in California?
- It is generally refundable if you cancel within valid contingencies and timelines set by your contract; after removing contingencies, refundability is limited.
Who chooses the escrow and title company in Tuolumne County?
- Selection is negotiable; in many California transactions the seller proposes a company, and both parties agree during contract negotiations.
What happens if the appraisal comes in low on my Sonora purchase?
- You can renegotiate price, add cash to cover the gap, adjust loan terms with your lender, or cancel if your appraisal contingency allows.
Can we extend escrow if inspections or loan processing take longer?
- Yes, extensions are possible with mutual written agreement; new dates should be documented in a signed addendum.
