Buying in Pasadena and hearing the word “escrow” tossed around? You’re not alone. Escrow can feel mysterious until you see how each step fits together. With the right plan, it becomes a clear, secure path from offer to keys. In this guide, you’ll learn what escrow is, how timelines typically play out in Pasadena, what you’ll deposit and sign, and how to avoid common pitfalls so you can close with confidence. Let’s dive in.
What escrow is in California
Escrow in California is a neutral, third-party process that holds funds and documents, coordinates payoffs and recording, and closes your purchase only after all contract conditions are met. Your escrow officer works alongside a title company to deliver clear title and transfer ownership at recording.
Here’s who does what:
- Your real estate agents negotiate terms, oversee deadlines, and guide you through inspections, disclosures, and contingency removals.
- The escrow officer opens the file, holds your earnest money, prepares closing statements, manages payoffs, and makes sure contract conditions are satisfied before closing.
- The title officer searches public records, issues the preliminary title report, helps resolve title issues, and provides title insurance.
- Your lender, if you are financing, handles appraisal, underwriting, and funding.
- The Los Angeles County Registrar-Recorder/County Clerk records the deed and other documents. Recording is what officially transfers ownership.
Escrow companies in California are regulated at the state level. You should verify that your escrow company is properly licensed and ask about consumer protections.
Pasadena escrow timeline at a glance
While every contract is negotiable, financed escrows in Pasadena and greater Los Angeles commonly take about 30–45 days. Cash purchases can move faster. Here is the high-level flow you can expect:
- Offer accepted → escrow opened (Day 0)
- Earnest money deposited (often within 1–3 days)
- Seller disclosures and preliminary title ordered (Day 0–3)
- Inspections and document review (commonly within the first 7–17 days)
- Loan underwriting and appraisal (often Day 7–21, if financing)
- Contingencies removed by agreed deadlines
- Final signing and lender disclosures (loan disclosures at least 3 business days before consummation)
- Funding and recording → keys released (often Day 30–45 for financed deals)
Step-by-step: from offer to keys
Day 0: Offer accepted and escrow opens
Once your offer is accepted, your agent instructs escrow and title to open the file. You will see escrow instructions soon after. Your initial deposit, called earnest money, is due per your contract, commonly within 1–3 business days.
Days 0–3: First documents and title work
The escrow officer confirms receipt of your deposit and issues instructions. The title company begins the record search and orders the preliminary title report. The seller typically starts delivering required disclosures such as the Transfer Disclosure Statement and the Natural Hazard Disclosure.
Days 0–7 to 17: Inspections and review
You schedule a general home inspection and any specialists needed, such as termite, roof, sewer scope, foundation, or HVAC. You also review all seller disclosures and the preliminary title report. In Pasadena, inspection contingency windows are often negotiated in the 7–17 day range.
Days 7–21: Loan and appraisal if financing
You complete your loan application and provide documents to your lender. The lender orders an appraisal, which usually takes 7–14 days. The underwriter may issue conditions that you work through with your lender.
Concurrent tasks you may not see
Escrow orders payoff statements for any existing liens and coordinates with title on clearing exceptions. If you are buying a condo or a home in a planned development, escrow requests HOA documents. These can take several business days to 2–3 weeks, so early requests are helpful.
Contingency decisions
Based on inspections and appraisal, you may request repairs or credits, or accept the property as is. You will remove contingencies by the deadlines in your contract once you are satisfied with condition, title, appraisal, and loan.
Final week: Closing figures and signing
Escrow prepares your final settlement statement. If you have a loan, your lender issues the Closing Disclosure with a required delivery period that is typically at least 3 business days before consummation. You sign loan and escrow documents and wire your final funds to escrow.
Closing day: Funding, recording, and keys
When your lender funds, escrow sends the deed and deed of trust for recording with Los Angeles County. The county supports electronic recording, which speeds up processing, but final timing can vary by funding schedules and county workload. Keys are released per the contract, often on or after confirmation of recording.
Typical length
- Cash purchase: often 7–14 days, depending on title clearances and document readiness.
- Financed purchase: commonly 30–45 days in Pasadena and Los Angeles County, though timelines can be shorter or longer based on contingencies, underwriting, appraisal results, and HOA document delivery.
What you will deposit and sign
Earnest money
Your initial earnest money is a good-faith deposit typically around 1%–3% of the purchase price in many California transactions, though amounts can be higher in competitive situations. The contract sets the exact amount and timing.
Common contingencies
- Loan contingency: protects you if financing cannot be obtained as agreed.
- Inspection contingency: gives you time to complete general and specialty inspections.
- Appraisal contingency: allows renegotiation or cancellation if the appraisal is low, when included.
- Title contingency: lets you review the preliminary title report and address issues.
- Sale-of-home contingency: sometimes used if you need to sell a current home first.
Documents and disclosures
Expect to review and sign escrow instructions, contract addenda, and, if financing, your loan documents. Common California disclosures include the Transfer Disclosure Statement, Natural Hazard Disclosure, lead-based paint disclosures for pre-1978 homes, and any local tax or assessment notices such as Mello-Roos. Condo and HOA properties include a disclosure packet with CC&Rs, financials, and rules.
Pasadena and LA County specifics to know
Recording and e-recording
Los Angeles County records the grant deed and deed of trust. E-recording is widely used and helps speed the process, but recording is not always instantaneous. Ask escrow about expected timing near your closing date.
Who pays which fees
Payment of escrow and title fees is negotiable and can follow local custom. In many Southern California deals, parties often split escrow fees, and sellers may pay for the owner’s title policy while buyers pay for the lender’s policy. Confirm what your contract specifies.
HOA documents and timing
For condos and planned communities in Pasadena, HOA packets and estoppels are often required. Delivery can range from several business days to 2–3 weeks, and delays are a common reason for escrow extensions. Request these early.
Mello-Roos and special assessments
Parts of Los Angeles County include special tax districts and assessments that affect your ongoing property tax bill. You will see these in the tax and natural hazard disclosures. Review them closely to understand monthly or annual obligations.
Natural hazards and insurance
Some Pasadena neighborhoods, especially near foothill and wildland interface areas, may be in identified fire hazard zones. Lenders require hazard insurance at closing. If you have concerns about coverage or cost, get quotes early in your escrow.
Utilities and permits
Pasadena relies on local and county utilities and departments. If needed, verify sewer connection, permit history, or open permits through the City of Pasadena or Los Angeles County records as part of your due diligence.
Common pitfalls and how to avoid them
Wire fraud risk
Wire fraud is a growing threat. Treat any emailed wiring instructions with extreme caution. Always verify wire details by phone with your escrow officer using a phone number you obtain directly from a trusted source, not from the email that delivered the instructions.
Underestimating closing costs
Plan for buyer closing costs that commonly range around 2%–4% of the purchase price when you have a mortgage, depending on your loan terms and any credits in the contract. Ask your lender and escrow for tailored estimates.
HOA document delays
HOA packets can slow an otherwise smooth escrow. Request them as soon as escrow opens and follow up until complete.
Appraisal shortfalls
If the appraisal comes in below the purchase price, you may need to contribute more cash, renegotiate price or credits, or cancel if your appraisal contingency allows. Discuss strategy with your agent early.
Title issues
Unreleased liens or title exceptions can surprise buyers late in escrow. Review the preliminary title report promptly and ask the title officer to explain any exceptions or steps needed to clear them.
Unclear repairs or credits
If you request repairs or credits, get everything in writing and make sure escrow receives clear instructions. Ambiguity causes delays.
Insurance availability
If the home is in a high fire-risk area, insurance can be more expensive or require special terms. Start quotes early so coverage is in place before closing.
Buyer checklist
Use this quick list to keep your escrow on track:
- Deliver earnest money promptly and request receipt from escrow.
- Book inspections right away and complete them within your contingency window.
- Submit a full loan package immediately and respond to lender conditions quickly.
- Track all contingency removal deadlines and set calendar reminders.
- Confirm HOA document timing early for condos and planned developments.
- Verify all wiring instructions by phone using a trusted number.
- Review the preliminary title report and ask questions about exceptions.
- Get homeowner’s insurance quotes early and confirm lender requirements.
- Budget for closing costs, prepaids, and prorations.
- Keep communication open among your agent, lender, and escrow officer.
Who does what during escrow
Understanding roles helps you know who to contact for each issue:
- Agents: Guide negotiations, manage timelines, coordinate inspections and repairs, and support you through contingency decisions.
- Escrow: Neutral coordinator that holds funds, prepares statements, and closes only when the contract conditions are met.
- Title: Research and resolve record issues, issue the preliminary title report, and provide title insurance.
- Lender: Handle appraisal, underwriting, disclosures, and funding.
- County Recorder: Record the deed and deed of trust, which officially transfers ownership.
Ready to move confidently in Pasadena
Escrow does not need to be stressful. With a clear plan, a realistic timeline, and the right team, you can move from acceptance to recording with confidence. If you want hands-on guidance, from inspections to HOA packets to final signing, reach out to The Bono Group for a personalized, step-by-step strategy for your Pasadena purchase.
FAQs
How much earnest money is typical for a Pasadena home purchase?
- Many California buyers deposit about 1%–3% of the purchase price as earnest money, with exact terms set by your contract and market conditions.
How long does escrow usually take in Pasadena if I have a mortgage?
- Financed purchases commonly close in about 30–45 days, depending on underwriting, appraisal, contingency timelines, and HOA document delivery.
What happens if the appraisal comes in low during escrow?
- You can bring more cash, renegotiate price or credits with the seller, or cancel if your appraisal contingency allows. Your agent will help plan the best path.
Who typically pays for title insurance and escrow fees in Los Angeles County?
- It is negotiable. Local custom often has parties split escrow fees, sellers cover the owner’s title policy, and buyers cover the lender’s policy, but your contract controls.
When do I get the keys after closing in Pasadena?
- Keys are usually released on or after confirmation of recording with Los Angeles County, per your contract terms.
Are HOA documents a common cause of delay for Pasadena condos?
- Yes. HOA packet and estoppel delivery can take several business days to 2–3 weeks. Request them early to avoid extensions.
How do I protect myself from wire fraud during escrow?
- Always verify wiring instructions by calling your escrow officer using a trusted phone number you source independently. Do not rely on email alone.
