Is escrow a mystery box to you? You are not alone. In California, and especially along the Coastside, escrow has moving parts that can feel complex while you are trying to buy a home you love. This guide breaks it down in plain language, with Half Moon Bay specifics, so you know what to expect from offer to keys.
By the end, you will understand timelines, contingencies, local coastal checks, closing costs, and simple steps to keep your purchase on track. Let’s dive in.
What escrow is in California
Escrow is a neutral process where a licensed escrow holder safeguards funds and key documents while everyone completes their responsibilities. The escrow holder follows written instructions from you, the seller, and your lender, then coordinates the transfer of the deed and money at closing.
Escrow closes when the deed is recorded and funds are disbursed according to the instructions. Escrow officers act as impartial administrators and do not provide legal advice. If you need legal guidance, you can involve an attorney.
If you are financing, federal rules require your lender to provide early loan disclosures and a Final Closing Disclosure at least three business days before closing. That timeline is important because it affects when you can sign and fund.
Who is involved in your Half Moon Bay escrow
Several professionals work together to complete your purchase:
- You, the buyer, deposit earnest money, complete inspections and loan steps, and sign closing documents.
- The seller provides required disclosures, delivers clear title, and signs the deed and closing documents.
- The escrow holder opens escrow, holds deposits, prepares settlement statements, coordinates funding and recording, and disburses proceeds.
- The title company researches the title history and issues title insurance to you and your lender.
- Your lender orders an appraisal, approves your loan, and wires funds at closing.
- Your real estate agent manages timelines, paperwork, and negotiations so you stay on track.
- Inspectors and specialists complete any inspections you order or your lender requires.
- The San Mateo County Recorder’s Office records the deed, which makes the transfer official.
Timeline: what to expect in San Mateo County
Every deal is unique, but most follow a similar rhythm.
- Pre-offer: you arrange a loan pre-approval if financing.
- Offer accepted: escrow opens right away or within a few business days.
- Earnest money: you deposit your initial funds into escrow by the contract deadline.
- Contingencies: you complete inspections, review title, and work through loan and appraisal milestones.
- Final steps: you sign documents, your lender funds, the deed records, and you receive keys per the contract.
Typical time frames:
- Cash purchases often close in 7 to 15 days when title is clear and everyone moves quickly.
- Financed purchases commonly take 30 to 45 days in the Bay Area. Some close faster in 21 to 30 days when the appraisal, underwriting, and disclosures stay on schedule.
- Inspection contingency windows are often 10 to 17 days. Loan contingencies are often 21 to 30 days. All dates are negotiable in your contract.
Coastside timing factors
Half Moon Bay properties can require specialized due diligence that affects your calendar:
- Bluff or shoreline locations may call for geotechnical reports that take extra time.
- Homes with septic systems or wells need specialist inspections and possible permits for repairs.
- Condo or HOA properties require an estoppel statement and document package. Smaller coastal HOAs sometimes take longer to deliver.
- Working with lenders, title, and escrow teams who know the Coastside can help keep coordination tight.
Deposits and contingencies that protect you
Your earnest money deposit goes into escrow shortly after acceptance. The amount is negotiable and often expressed as a flat figure or a percentage of the price. Whether your deposit is refundable depends on your contingencies and the deadlines in your contract.
Common contingencies include:
- Financing contingency: protects you if your loan cannot be approved by the deadline.
- Inspection contingency: lets you investigate the home with general and specialist inspections and negotiate repairs or credits, or cancel if needed.
- Appraisal contingency: gives you options if the appraised value comes in low.
- Title contingency: allows you to review the preliminary title report and request resolution of title issues.
- HOA review contingency: for condos or planned communities, you can review governing documents and financials.
Coastside-specific checks
Half Moon Bay adds a few smart checkpoints to your list:
- Septic vs. sewer: confirm connection status and order septic inspections if applicable.
- Geotechnical and bluff stability: evaluate erosion or slope considerations for coastal or hillside homes.
- Flood and coastal hazard risk: review maps and elevation for storm surge or inundation exposure that could affect insurance and lending.
- Insurance planning: factor in potential coastal premiums for homeowner, flood, and consider earthquake coverage. Availability and cost can vary.
- Permits and code: verify permit history and any unpermitted work. If the home is in the coastal zone, confirm coastal development permits and recorded conditions.
Required disclosures in California
Sellers provide statutory disclosures that help you understand the property. These often include the Transfer Disclosure Statement and Seller Property Questionnaire, a Natural Hazard Disclosure that notes if the home is in a hazard area, and a lead-based paint disclosure for homes built before 1978. Local disclosures or permit histories may also be relevant, especially for coastal properties.
Closing day: how it all comes together
As you near the finish line, escrow prepares your final settlement statement while your lender sends a Closing Disclosure at least three business days before closing. You will sign loan and escrow documents in person or with approved electronic signing. You then wire your remaining funds to escrow following the wire instructions they provide.
Once your lender funds, escrow submits the deed for recording with the San Mateo County Recorder’s Office. When recording confirms, escrow disburses funds and your purchase is official. Keys are delivered according to your contract.
Possession and occupancy
Your contract sets the possession date. Sometimes sellers stay a short time after closing with a rent-back agreement. If the property has tenants, lease terms and local tenant protections govern possession and must be reviewed carefully.
Closing costs in San Mateo County
Closing costs vary by property and loan type, but common items include:
- Escrow and closing fees
- Title insurance premiums for owner and lender policies
- Recording fees and any city or county transfer taxes
- Lender charges, appraisal, and credit report fees
- Wiring or courier fees
- Prorated property taxes and any HOA dues
Who pays which line items is negotiable and shaped by local custom and your contract. Your escrow holder will prepare a final statement that shows every credit and debit to both sides.
Utilities and services to set up in Half Moon Bay
To make move-in smooth, set up utilities to start on your possession date:
- Water: Coastside County Water District serves much of Half Moon Bay and nearby communities. Confirm connection status and account transfer steps.
- Electricity and gas: Pacific Gas and Electric is the typical provider on the Peninsula. Plan ahead for account setup.
- Solid waste: local haulers such as Recology serve different areas. Verify service and container delivery.
- Internet and cable: availability varies by street. Check options early for coastal or more remote addresses.
Common delays and how to avoid them
Delays can happen, but you can reduce risk with early planning.
- Appraisal shortfalls or scheduling lags: order quickly and communicate access info to speed things up.
- Title issues or old liens: review the preliminary title report early and authorize fixes promptly.
- HOA document delays: request the package at once and follow up on the estoppel.
- Coastal inspections: schedule septic, geotechnical, pest, chimney, and roof inspections as soon as contingencies open.
- Lender conditions: submit documents fast and track the Closing Disclosure timeline so you meet the three-business-day rule before signing.
Step-by-step checklist
Follow this simple path after your offer is accepted:
- Open escrow and deliver your earnest money within 1 to 3 business days.
- Receive statutory disclosures from the seller within the first few days and start your review.
- During the inspection period, order a general inspection and any needed specialists such as septic, pest, chimney, roof, or geotechnical.
- Work through loan underwriting and appraisal during your loan contingency window.
- Review the preliminary title report and raise any concerns with your agent and escrow.
- When satisfied, remove contingencies in writing or cancel within your rights if issues cannot be resolved.
- Three to seven days before closing, confirm insurance coverage, review your Closing Disclosure, and schedule your final walk-through.
- Sign loan and escrow documents and wire your closing funds to escrow.
- After funding, escrow records the deed, disburses funds, and you receive keys per the contract.
Local checks for Half Moon Bay buyers
A few Coastside-specific verifications add confidence:
- Confirm sewer connection versus a private septic system through city records and inspections.
- Verify water service and any assessments with Coastside County Water District.
- Check coastal permit history with local planning resources and review any recorded conditions.
- Review flood and coastal hazard maps for elevation and exposure.
- Gather insurance quotes early for homeowner, flood, and optional earthquake coverage.
Buying on the Coastside should feel exciting, not confusing. With a clear plan, the right contingencies, and a local team that understands Half Moon Bay’s coastal nuances, you can move from offer to keys with confidence.
If you would like a local, high-touch guide for your Coastside purchase, reach out to Real Estate by Shanti. We will map your escrow timeline, line up the right inspections, and keep your closing calm and on schedule.
FAQs
What is escrow in California home buying?
- Escrow is a neutral process where a licensed holder manages funds, documents, and instructions until the deed records and money is disbursed according to the contract.
How long does escrow take in Half Moon Bay?
- Cash deals can close in 7 to 15 days and financed purchases commonly take 30 to 45 days, with faster 21 to 30 day timelines possible when all parties stay on schedule.
Which contingencies should Half Moon Bay buyers include?
- Typical protections are financing, appraisal, inspection, title, and HOA review plus Coastside-specific checks like septic, geotechnical, and coastal permit verification.
Is my earnest money deposit refundable?
- Refundability depends on your contingencies and deadlines; if you cancel within your rights, escrow can return funds, but missed dates or waived contingencies can risk the deposit.
Who pays closing costs in San Mateo County?
- Many items are negotiable and shaped by local custom; escrow and title fees, transfer taxes, lender charges, recording, and prorations are typically split or assigned per the purchase contract.
When do I get keys after closing?
- You receive keys per your contract after the deed records with the San Mateo County Recorder’s Office and escrow confirms funding and disbursements.
Do coastal permits affect escrow timing?
- Yes, verifying coastal development permits and any conditions can add time, especially for bluff or shoreline homes, so start that review early in your inspection window.
