Buying or selling a home in San Rafael comes with one big question: what actually happens in escrow? If you are like most Marin clients, you want a clear roadmap and a steady hand guiding each step. In this guide, you will learn how escrow works in California, what to expect in San Rafael, and how to keep your closing moving with confidence. Let’s dive in.
Escrow basics in California
Escrow is a neutral third party that holds funds and documents while the buyer and seller complete all terms of the contract. The escrow holder follows written instructions from both sides and coordinates the transfer once conditions are met. In California, escrow companies are supervised by the state’s financial regulator. You can review oversight details through the California Department of Financial Protection and Innovation.
Title is handled alongside escrow. A title company researches the property’s ownership and issues title insurance policies to protect the buyer and lender after closing. For an easy primer on why title insurance matters, the American Land Title Association explains the basics.
Who does what in a San Rafael escrow
- Buyer: Deposits earnest money, orders inspections, secures financing, reviews disclosures, and removes contingencies by the contract deadlines.
- Seller: Provides required disclosures and documents, completes agreed repairs or credits, and signs closing documents.
- Escrow officer: Receives and holds funds, prepares settlement statements, coordinates payoffs and recording, and disburses money at closing.
- Title company: Issues the preliminary title report, resolves title defects, and issues final title insurance policies at close.
- Lender: Orders the appraisal, clears underwriting conditions, and funds the loan at closing.
- Agents: Help you track deadlines, review reports, negotiate repairs or credits, and keep communication clear.
For consumer rules and licensing related to real estate transactions, the California Department of Real Estate provides helpful guidance on disclosures and practice standards.
Earnest money in Marin County
Your earnest money deposit shows commitment and is held in escrow while contingencies are active. In many California markets, a typical range is 1% to 3% of the purchase price. In Marin’s competitive segments, buyers sometimes offer larger deposits, but the amount is always negotiable.
- Timing: The purchase agreement usually sets a deadline for the deposit, often within 24 to 72 hours after acceptance.
- Handling: Escrow issues a receipt once funds arrive by check or wire. Follow the escrow officer’s written instructions carefully.
- Refunds and disputes: If you cancel within an active contingency, the deposit is typically returned per the contract. If a buyer defaults without contingency protection, the seller may seek the deposit as liquidated damages or pursue other remedies. Escrow will not release disputed funds without mutual written instructions or a court order.
- Wire safety: Always verify wiring instructions by calling your escrow officer using a verified phone number. This is the most effective way to avoid wire-fraud scams.
Typical escrow timeline in San Rafael
Every transaction is unique, but common ranges in Marin are useful benchmarks.
- Financed purchases: About 30 to 45 days is common.
- All-cash or very competitive: Often 7 to 21 days, if documents and due diligence are ready.
Here is a straightforward example for a 30 to 45 day escrow:
- Day 0: Offer accepted and escrow opened. Earnest money due per contract.
- Days 0–3: Escrow opens file and orders a preliminary title report.
- Days 3–10: Buyer orders inspections and applies for the loan.
- Days 7–17: Inspection period wraps up. Disclosures are reviewed. Repairs or credits are negotiated if needed.
- Days 10–21: Appraisal is completed. Title issues, if any, are addressed. Underwriting reviews buyer documents.
- Days 21–30 (or up to Day 45): Loan conditions are cleared. Final walk-through is scheduled. Escrow prepares closing statements. Buyer signs loan documents and wires funds.
- Closing: Lender funds, escrow disburses, and the deed records at the Marin County Recorder. Keys are released after confirmation of recording.
Delays can occur due to appraisal timing, HOA document delivery, or repair coordination. Getting ahead of these items early often keeps the calendar on track.
Contingencies and disclosures to expect
Most California purchase agreements include contingency periods, which protect the buyer while they verify key items.
- Inspection contingency: Covers general home, roof, and wood-destroying pest inspections. You can cancel or negotiate repairs and credits within the agreed window.
- Loan contingency: Lets you cancel if you cannot secure financing by the deadline.
- Appraisal contingency: If the appraisal is below the purchase price, you can renegotiate or cancel if protected by this contingency.
- Title contingency: You have time to review the preliminary title report and require any issues to be resolved.
- HOA review: For condos or planned communities, you review CC&Rs, budgets, and any special assessments.
California sellers also provide required disclosures, such as the Transfer Disclosure Statement, Seller Property Questionnaire, Natural Hazard Disclosure, and the federal lead-based paint disclosure for homes built before 1978. For background on forms and disclosure practices, visit the California Association of REALTORS.
Local San Rafael considerations
San Rafael and greater Marin have a few local items that often come up during escrow:
- Sewer or septic: Confirm the sewer connection and any sewer lateral requirements or local ordinances. City resources are available on the City of San Rafael site.
- Wildfire risk: Marin includes areas with higher wildfire risk. You will review the Natural Hazard Disclosure and may encounter insurance or lender documentation related to fire risk.
- Flood zones: Low-lying or coastal properties may require flood insurance. Verify flood zone status and any needed elevation certificates.
- HOA timelines: If the property is in an HOA, plan for the time it takes to deliver and review resale documents.
- Title items in older homes: Easements, prior liens, or old permits may appear and should be resolved early when possible.
Closing in Marin: funding, recording, and costs
Closing is a series of final checks and confirmations.
- Title search and insurance: The title company issues a preliminary title report early and then final title insurance at closing, covering past claims that could affect ownership. See an overview from the American Land Title Association.
- Final walk-through: Usually 24 to 72 hours before funding to confirm property condition and agreed repairs.
- Funding and recording: The lender sends funds to escrow after underwriting clears conditions. Once escrow confirms funds and signed documents, the deed is recorded at the Marin County Recorder’s Office, which is the legal transfer.
- Costs: Who pays what can vary by contract and local custom. Buyers often pay lender-related fees, appraisal, and portions of title and escrow fees. Sellers often pay broker commissions, the owner’s title policy in many California markets, and any agreed credits or repairs. Always review the final settlement statement line by line.
- Transfer taxes: Confirm city or county transfer taxes with the Marin County Recorder and the City of San Rafael, since rates and rules can change. The Recorder’s Office posts current recording procedures and fees.
For a clear explanation of closing timelines and documents, the Consumer Financial Protection Bureau’s guide to closing is a useful reference.
How to keep escrow on track
A little preparation goes a long way in Marin’s market.
If you are buying:
- Get lender pre-approval early and respond quickly to any underwriting requests.
- Schedule inspections as soon as escrow opens and review results promptly.
- Confirm wiring instructions by phone with your escrow officer before sending funds.
If you are selling:
- Provide complete disclosures and gather reports early. If you expect repair requests, get bids to keep negotiations efficient.
- If the home is in an HOA, order the resale package promptly and allow time for buyer review.
For everyone:
- Keep a shared calendar of contingency and loan milestones. Ask your agent to confirm due dates in writing.
- Read the preliminary title report early and start clearing any known title items at the outset.
How Brannan Palmer Group supports your escrow
You deserve a calm, organized process from acceptance to recording. As a boutique Compass team with deep Marin roots, we focus on clear communication, careful deadline management, and hands-on coordination.
- Timeline leadership: We map your contingency calendar and keep all parties aligned so nothing slips.
- Disclosure and document readiness: We help you assemble complete files to reduce surprises.
- Repair and prep coordination: With Compass resources, we coordinate repairs and pre-sale improvements to support cleaner negotiations and stronger outcomes.
- Specialized support: We handle estate and trustee sales, 1031 exchange logistics, and property management considerations with care.
Our goal is simple: a smooth escrow and a confident close for your San Rafael move.
Ready to move in San Rafael?
If you are thinking about buying or selling, let’s talk through your timeline and next steps for escrow. Contact Brannan Palmer Group to walk your specific plan, from deposit to recording, and to review a tailored calendar for your property. Request your complimentary home valuation, and we will outline a clear path to closing in Marin.
FAQs
How does escrow work for San Rafael homes?
- Escrow holds funds and documents while both sides complete contract terms, then coordinates recording at the Marin County Recorder once conditions are met.
How much earnest money is typical in Marin County?
- Many California transactions use 1% to 3% of the purchase price, but the amount is negotiable and can vary with market conditions in San Rafael.
What are common California contingencies for buyers?
- Inspection, loan, appraisal, title, and HOA review are common. These allow you to investigate and, if needed, cancel within the agreed periods.
Who pays closing costs in San Rafael?
- It depends on the contract and local custom. Buyers often cover lender fees and some title and escrow costs. Sellers often pay commissions and the owner’s title policy in many markets.
How is the deed recorded in Marin County?
- After funds are confirmed and documents are signed, escrow submits for recording at the Marin County Recorder’s Office. Recording makes the transfer official.
