Buying or selling in Palo Alto and wondering how long escrow really takes? You’re not alone. With tight timelines and many moving parts, the process can feel fast and complex. This guide walks you through each step, what to expect locally, and how to avoid common delays so you can close with confidence. Let’s dive in.
Palo Alto escrow timeline at a glance
- Offer accepted to escrow open: same day to 1 business day.
- Earnest money deposit: within 1 to 3 business days of acceptance.
- Disclosures and preliminary title: within the first week.
- Inspections: typically 5 to 10 days.
- Appraisal and loan processing: often 14 to 30 days.
- Contingency removals: commonly in days 7 to 21.
- Signing, funding, recording: 1 to 5 business days after clear to close.
- Typical total escrow length: about 17 to 30 days. Cash purchases can close in 7 to 14 days. Complex or financed sales may run 30 to 45+ days.
Step 1: Offer accepted
Your signed purchase agreement starts the clock. It sets the escrow length, deposit amount, contingency windows, and who pays which closing costs. Acceptance triggers instructions to open escrow and share contact details for everyone on the file.
Expect quick coordination between your agent, the listing agent, and the escrow officer. Clear communication in the first 24 hours keeps the timeline intact.
Step 2: Open escrow and deposit
Escrow is a neutral third party that holds funds and coordinates documents. Once open, you receive escrow instructions, wiring information, and a transaction timeline. Your initial deposit is due within 1 to 3 business days, as specified in your contract.
Escrow will confirm receipt of funds and create the official file. Keep your wire instructions secure and verify by phone with the escrow officer to prevent fraud.
Step 3: Title review
The title company searches public records to identify liens, easements, or other encumbrances on the property. You receive a preliminary title report, often within the first week.
If the report shows items like prior loans, tax liens, or HOA assessments, the escrow officer and agents coordinate payoffs or cures before closing. Early review helps prevent last-minute surprises.
Step 4: Seller disclosures
The seller provides required disclosures, which may include a Transfer Disclosure Statement, a Seller Property Questionnaire, a Natural Hazard Disclosure, and a lead-based paint disclosure for homes built before 1978. Local addenda may apply.
You should review these promptly. Your inspection and investigative contingency period is tied to when disclosures are delivered, so quick delivery protects your timeline.
Step 5: Inspections and HOA documents
Inspections are typically scheduled right away. Common options include a general home inspection, roof, HVAC, sewer scope, foundation, and pest or termite assessments. In the Bay Area, the inspection window is often 5 to 10 days, and some offers use 7 days.
If the home is in a common interest community, request the HOA resale packet as soon as possible. Expect governing documents, financials, meeting minutes, insurance, rules, and any pending litigation disclosures. Turnaround can take 5 to 10 business days after the HOA receives the request and fee, and delays here can extend escrow.
Review all findings with your agent. You may ask for repairs or credits, or choose to proceed as is.
Step 6: Loan and appraisal
If you are financing, your lender orders the appraisal early in escrow. Appraisals typically return within 7 to 21 days, depending on availability. Loan processing and underwriting often take 14 to 30 days.
If the appraisal comes in below the purchase price, you and the seller can negotiate a price change, you may bring additional funds, or you might cancel under an appraisal contingency if your contract includes one.
Step 7: Negotiations and contingency removal
Once inspections and appraisal are complete, you and the seller handle any repair or credit discussions. When you are comfortable with the property condition and disclosures, you remove your inspection contingency in writing.
Loan contingencies in local practice often run 17 to 21 days, but this is negotiable. Removing contingencies is a significant milestone, since it narrows your options to cancel.
Step 8: Final approval and signing
Your lender issues clear to close when final conditions are satisfied. Escrow prepares your final settlement figures in the Closing Disclosure, including prorations, payoffs, and closing costs. Review these numbers carefully.
Signing usually occurs a few days before funding. Remote or mobile signing is often available. Coordinate your final funds and any remaining documents with escrow and your lender.
Step 9: Funding, recording, and keys
Once you sign, your lender wires funds to escrow and you send any remaining cash to close. The deed and, if applicable, the deed of trust are then recorded with the Santa Clara County Recorder.
Santa Clara County supports electronic recording, which can shorten turnaround. After confirmation of recording, escrow disburses funds, pays off liens, and your title policy is issued. Keys typically follow recording.
Local customs that affect timing
- Competitive timelines: In Palo Alto, strong offers often target 15 to 21 day escrows. Cash offers can close in 7 to 14 days. Jumbo financing, limited comparable sales, or complex title or HOA issues can extend the process to 30 to 45+ days.
- Contingency windows: Inspection contingencies are commonly 5 to 10 days. Loan contingencies often range from 17 to 21 days. Appraisals typically complete within 7 to 21 days.
- HOA realities: Resale packets commonly take 5 to 10 business days after the HOA receives the request and fee. Fees and timelines vary by HOA. Order immediately to avoid delays.
- Title and payoffs: Expect payoff coordination for existing loans, HELOCs, or liens. Ask the seller to authorize payoff requests early.
- Municipal and assessments: Check for parcel assessments or utility district fees that appear on title and may affect prorations. Confirm any city-specific sale requirements with your escrow officer.
- High-price effects: Jumbo loans and limited comparable sales in higher price tiers can increase underwriting scrutiny and appraisal review time.
Prevent delays with smart coordination
Use this quick checklist during week one to stay ahead:
- Secure a fully executed purchase agreement and open escrow same day to 1 business day.
- Send your earnest money deposit and confirm receipt with escrow.
- Request and review the preliminary title report.
- Receive the seller’s full disclosure packet promptly.
- Submit the HOA resale packet request immediately, if applicable.
- Have your lender order the appraisal and issue initial loan instructions.
Keep the timeline on track with clear ownership:
- Days 0 to 1: Agents confirm escrow open and deposit due. Escrow issues file and instructions.
- Days 1 to 7: Title opens and issues the prelim. Seller delivers disclosures. You schedule inspections.
- Days 3 to 14: Complete inspections, review HOA packet as it arrives, and your lender manages the appraisal.
- Days 10 to 21: Handle negotiations and remove contingencies per contract. Prepare for final approval.
- Final days: Wire final funds, sign closing documents, and coordinate recording.
Watch for common escalation points:
- Slow HOA packet: Ask for expedited service if available and request early.
- Title exceptions: Start payoff and cure discussions as soon as the prelim arrives.
- Appraisal gap: Discuss bridge funds or a negotiation strategy in advance.
- Underwriting delays: Confirm your lender’s document list upfront and check in weekly.
Sample timeline language you can use
- “Typical escrow length in Palo Alto ranges from about 17 to 30 days. Strong cash offers often close in 7 to 14 days. Financed sales commonly take 21 to 30+ days depending on underwriting and appraisal.”
- “Expect seller disclosures and the preliminary title report within the first week after escrow opens. HOA resale packets commonly take about 7 to 10 business days but can take longer, so request them immediately.”
- “Inspection contingencies in local practice often run about 7 to 10 days. Loan contingency periods commonly range 17 to 21 days but are negotiable in the contract.”
Final thoughts: close with confidence
A smooth Palo Alto escrow comes down to timing, clarity, and early coordination. Order HOA documents right away, review the prelim as soon as it posts, complete inspections quickly, and keep your lender looped in with updated documents. When each player knows their role and deadlines, you protect your timeline and reduce stress.
If you want a clear plan from offer to keys, along with hands-on coordination, reach out to Elizabeth Thompson for a personalized escrow roadmap.
FAQs
How long does escrow take in Palo Alto?
- Most escrows close in about 17 to 30 days, with cash purchases often finishing in 7 to 14 days and more complex or financed sales taking 30 to 45+ days.
When is my earnest money due after acceptance?
- Your initial deposit is typically due within 1 to 3 business days of acceptance, as specified in your purchase agreement and escrow instructions.
What inspections are common and how long do they take?
- Buyers often schedule general, roof, HVAC, sewer scope, foundation, and pest inspections, with a typical local window of 5 to 10 days.
What is an HOA resale packet and why does it matter?
- The packet includes HOA rules, financials, insurance, and meeting minutes; it often takes 5 to 10 business days and can delay escrow if requested late.
How do appraisal and loan timelines usually run?
- Appraisals often return within 7 to 21 days, while loan processing and underwriting commonly span 14 to 30 days, affecting loan contingency timing.
How does funding and recording work in Santa Clara County?
- After you and the lender wire funds, escrow submits documents for recording with the county; electronic recording helps many files record within 1 to 5 business days after clear to close.
