If you are buying your first home in Gerber, the word “escrow” can feel like a black box. You want your deposit protected, your loan approved, and your keys on time, without surprises. In this guide, you will learn what escrow is, how it works in California, who does what, what it typically costs, and how to keep your Gerber closing on schedule. Let’s dive in.
Escrow basics in California
Escrow is a neutral third‑party process that holds funds and documents until all contract conditions are met and the property can transfer. The escrow holder follows written instructions from both buyer and seller and records documents once conditions are satisfied. This protects your earnest money and ensures you receive clear title only after proper funding and recording.
In California, escrow agents operate under state escrow law. You can and should confirm that your escrow company is properly licensed and ask about complaint history with the state regulator. If you are financing, federal disclosure rules require specific documents and timing that affect when you can sign and close.
Step‑by‑step escrow in Gerber
Here is the typical sequence after your offer is accepted. Steps often overlap.
- Open escrow and deposit earnest money per your contract.
- Escrow receives the contract, opens a file, assigns an officer, and orders a preliminary title report.
- Title search identifies liens, easements, and other encumbrances; a preliminary title report is issued for your review.
- Seller disclosures are delivered, including state forms and any HOA documents if applicable.
- You schedule inspections during your contingency period. Common choices include general home, pest, roof, septic, well, or sewer scope.
- If issues arise, your agent helps negotiate repairs or credits that are documented for escrow.
- If financing, your lender orders an appraisal and collects documents from you to clear loan conditions.
- Title issues and payoff items are resolved so you can receive clear title.
- Escrow prepares final figures, prorations, and closing statements. Your lender must provide your Closing Disclosure at least three business days before closing on financed purchases.
- You sign escrow and loan documents. The lender funds, escrow disburses funds, the county records the deed, and you receive your keys after recording.
Roles and responsibilities
Buyer
- Provide earnest money, identification, and lender documents quickly.
- Order inspections and work through contingencies on time.
- Obtain homeowner’s insurance and review the title report and disclosures.
- Review and sign all escrow and loan documents.
Seller
- Provide required disclosures and documents.
- Resolve title issues per the contract and sign the deed.
- Provide possession as agreed after recording.
Escrow officer
- Acts as a neutral holder of funds and documents.
- Coordinates title work, payoff demands, prorations, and recording.
- Prepares closing statements and disburses funds per instructions.
Title company
- Performs the title search and issues the preliminary title report.
- Provides title insurance policies at closing.
Lender
- Processes your loan, orders the appraisal, sets conditions, and funds at closing.
- Provides required federal disclosures, including the Closing Disclosure.
Real estate agents
- Coordinate deadlines, recommend inspectors and escrow/title partners, and help negotiate repairs and credits.
Timeline and contingencies
Most California escrows run 30 to 45 days for conventional sales with preapproved buyers. Some close faster, and some take longer based on financing and negotiations. Your contract controls the exact deadlines.
Examples of common timeframes, all negotiable:
- Inspection contingency: often 10 to 17 days.
- Loan contingency: commonly around 21 days.
- Appraisal: ordered early and completed before clear to close.
- Closing Disclosure: for financed buyers, must be delivered at least three business days before closing.
30‑day example schedule
- Day 0: Offer accepted, deposit sent, escrow opens.
- Days 1–3: Preliminary title report ordered, disclosures start.
- Days 3–17: Inspections and repair negotiations.
- Days 7–21: Appraisal completed, loan conditions issued.
- Days 17–21: Contingencies removed if satisfied.
- Days 24–28: Final figures and Closing Disclosure sent.
- Days 27–30: Signing, funding, recording, keys.
Local Gerber and Tehama tips
Recording is handled by the Tehama County Recorder. Ask your escrow officer about local recording schedules and whether recording is typically same‑day or next‑day. Check with the Assessor/Recorder regarding tax proration procedures and any supplemental tax steps after closing.
Transfer taxes and who pays certain title fees can vary by county and by contract. In many parts of Northern California, it is common for the seller to pay for the owner’s title policy, but customs vary. Confirm current practice in Tehama County and set the agreement in your offer.
Many Gerber properties are rural. You may see septic systems, private wells, and agricultural or access easements. Consider the following:
- Order septic and well inspections where applicable.
- Verify parcel maps and access easements, especially for private roads.
- Ask about permits for outbuildings, wells, or septic work.
- Review wildfire hazard and defensible space requirements given regional fire risk.
If your property is within an HOA, escrow will gather governing documents for your review. Many rural properties are not in HOAs, so you may not encounter this step.
Costs and title insurance
Escrow and title fees vary by company, price, and local custom. Ask your escrow officer for a detailed fee estimate early. Many costs can be negotiated between buyer and seller in your contract.
There are two common title insurance policies at closing. The lender’s policy is typically required by the lender and protects the lender’s interest. The owner’s policy protects your equity from covered title issues. The cost depends on price and county rate schedules. Confirm in your contract who will pay for the owner’s policy based on local custom.
Property taxes are prorated at closing. In California, you should also expect a supplemental property tax bill after the change in ownership. Budget for this separate bill even if your lender pays regular taxes through an impound account.
Other buyer costs may include recording fees, notary and courier fees, lender underwriting and appraisal, homeowner’s insurance, and any negotiated home warranty or repair credits. Your Closing Disclosure and final settlement statement will summarize all charges and credits.
Paperwork to gather
- Proof of funds for your down payment and closing costs.
- Government photo ID for signing.
- Lender preapproval or commitment letter.
- Homeowner’s insurance information or binder.
- Signed purchase agreement and addenda.
- Contact details for your agent, lender, and escrow/title company.
- Any loan‑specific items for VA, FHA, or alternative financing.
Avoid delays and scams
Wire fraud is real. Before sending any funds, call your escrow officer using a known phone number to confirm wiring instructions. Do not rely on email instructions alone.
Track your contingency dates and make calendar reminders for inspection, loan, and disclosure deadlines. Missing a removal date can limit your rights under the contract. Share your timeline with your agent so everyone stays aligned.
Review the preliminary title report early. If it shows liens, probate issues, or judgments, start clearing them immediately. For rural properties, verify there are no unpaid contractor bills that could create mechanics’ liens.
Provide lender documents quickly to avoid appraisal and loan delays. Ask when your Closing Disclosure will be issued so you can meet the three‑business‑day waiting period.
Plan your signing. Confirm whether you will sign in person or with a mobile notary, and bring proper identification. Review your Closing Disclosure and final statements line by line, and ask questions before you sign.
Quick buyer checklist
Immediately after acceptance:
- Send earnest money and confirm receipt with escrow.
- Share proof of funds and loan preapproval with escrow.
- Request a preliminary closing cost estimate and title report timeline.
Within the first week:
- Schedule general, pest, and any specialty inspections such as septic or well.
- Obtain homeowner’s insurance quotes and select a provider.
During the inspection period:
- Review reports and decide on repairs or credits.
- Document all agreements so escrow can include them in closing figures.
Loan and appraisal phase:
- Send requested documents to your lender immediately.
- Track appraisal scheduling and results.
Final week before closing:
- Review the Closing Disclosure at least three business days before closing.
- Call escrow to confirm wiring instructions.
- Schedule your signing appointment and verify ID requirements.
Day of closing:
- Bring a government photo ID to signing.
- Confirm how and when keys will be released after recording.
Closing day expectations
You will sign your loan and escrow documents, then your lender funds the loan. Escrow disburses funds, pays off any seller liens, and sends documents for recording with the county. After confirmation of recording, you receive your keys and can take possession per your contract.
Ready to take the next step?
If you want a local, hands‑on guide through escrow in Gerber and across Tehama County, reach out to Lori Slade for clear steps, trusted local partners, and on‑time closings.
FAQs
What is escrow in a California home purchase?
- Escrow is a neutral process where a licensed third party holds funds and documents and follows written instructions until all conditions are met and the property can transfer.
How long does escrow take in Gerber, CA?
- Many escrows close in 30 to 45 days with preapproved buyers, though timelines can be shorter or longer based on financing and negotiations.
Who pays for title insurance in Tehama County?
- It depends on local custom and your contract; in many Northern California areas sellers often pay for the owner’s policy, but you should confirm and negotiate in your offer.
What are typical buyer costs at closing?
- Expect prorated taxes, lender fees, appraisal, title and escrow fees, recording and notary charges, homeowner’s insurance, and any agreed warranties or credits.
Do I need an owner’s title insurance policy?
- It is optional but recommended because it protects your equity from covered title issues, separate from the lender’s policy that protects the lender.
When do I get my keys?
- After the lender funds, escrow disburses funds, and the deed is recorded with the county; key delivery usually follows confirmation of recording.
