What to Expect During the Escrow Process in California and Texas

If you’re buying or selling a home in California or Texas, you’re going to hear a lot about escrow. It’s not just a buzzword—it’s a vital part of the real estate transaction that protects both parties and ensures everything runs smoothly. And with real estate pro Ali Shariat guiding deals from Irvine to Austin, it’s crucial to understand what happens after your offer is accepted.

The escrow process may seem like a maze, especially for first-timers. But knowing what to expect can ease anxiety, prevent delays, and help you make informed decisions at every stage of your transaction.

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TLDR – Quick Guide

Here’s a bite-sized look at the escrow journey in California and Texas:

• Escrow opens once an offer is accepted and earnest money is deposited.
  
• Due diligence begins, including inspections and appraisals.
  
• Loan and financing processes take place behind the scenes.
  
• Title and insurance checks ensure the property is clear for sale.
  
• Final walk-through and signing wrap things up before closing.
  

Detailed Breakdown

1. Opening Escrow

Once the seller accepts the buyer’s offer, the first big step is opening escrow. This involves a neutral third party—usually an escrow company—holding the buyer’s earnest money deposit and managing documentation throughout the deal.

In both California and Texas, the escrow agent ensures compliance with the terms of the purchase agreement and maintains an unbiased role.

2. Inspections and Appraisals

Next comes due diligence. The buyer typically hires a licensed inspector to check the property’s condition. A home appraisal is also required by lenders to verify the home’s market value.

Ali Shariat’s clients often benefit from referrals to trusted inspectors and lenders, helping move this step along smoothly.

3. Title and Disclosure Review

During escrow, a title company performs a title search to confirm there are no ownership disputes, liens, or other encumbrances.

Sellers in California must complete a Transfer Disclosure Statement (TDS). In Texas, a Seller’s Disclosure Notice is standard. Both documents are legal requirements designed to inform the buyer about property conditions.

4. Loan Approval and Final Docs

For financed buyers, loan underwriting kicks into high gear during escrow. This includes document verification, income checks, and risk assessments.

Once everything is greenlit, the buyer receives the Closing Disclosure, summarizing loan terms and closing costs. Reviewing this carefully is key—Ali often steps in here to help clients decode the jargon.

5. Final Walkthrough and Closing

Just before closing, the buyer conducts a final walk-through to ensure the home’s condition hasn’t changed. Once satisfied, both parties sign the final paperwork.

Escrow is officially closed when:

• The buyer’s loan funds.
  
• The county records the deed in the buyer’s name.
  
• The seller receives their proceeds.
  

Expect escrow in California to last 30–45 days on average, while Texas timelines often range between 25–40 days, depending on loan type and inspections.

Key Takeaways

• Escrow is a neutral process that protects both buyer and seller in a real estate deal.
  
• It includes critical steps like inspections, title checks, and financing approvals.
  
• California and Texas share many escrow similarities but have distinct disclosure laws.
  
• Working with a local expert like Ali Shariat streamlines communication between parties.
  
• Being prepared with documents and responsive during escrow avoids costly delays.
  

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