Buying or selling in Corona del Mar and wondering what really happens once your offer is accepted? You are not alone. Escrow can feel mysterious, especially with coastal factors, HOA rules, and high-value transactions in the mix. In this guide, you will learn how escrow works in California, what to expect step by step in Corona del Mar, how costs are typically handled, and the local issues that can affect your timeline. Let’s dive in.
What escrow is and why it matters
Escrow is a neutral third party that holds funds and coordinates every step of your closing. The escrow holder collects documents, orders title work, tracks contingencies, manages payoffs and lender funding, records the deed, and then disburses funds at closing.
Escrow is different from title, your lender, and your agent. The title company researches the property’s ownership and issues title insurance. Your lender sets loan conditions if you are financing. Your real estate agent negotiates and guides strategy. In California, escrow companies are licensed and regulated at the state level.
In Southern California, a typical escrow is about 30 days for financed purchases. Cash can close faster, often 7 to 21 days if title and inspections are clean. Complex transactions like trust or probate sales, 1031 exchanges, or extensive coastal due diligence may run 45 to 90 days or longer.
The Corona del Mar escrow timeline
Below is a practical sequence for most CdM closings. Timing can adjust based on your contract, financing, and property type.
1) Open escrow and deposit funds (Day 0–3)
You and the seller sign the purchase agreement, and you deliver your earnest money to escrow by wire or check per the contract. Escrow opens a file, assigns an escrow number, and shares initial instructions and contacts. You may receive a preliminary closing estimate early in the process.
2) Title search and prelim report (Day 0–7)
The title company searches public records for liens, easements, and restrictions. A preliminary title report is issued to both parties so you can review exceptions or potential issues. Title insurance premiums are estimated, and who pays each policy is determined by your contract.
3) Contingency period and inspections (commonly 7–21 days)
You complete inspections such as a general home inspection, termite or wood-destroying organism report, roof, sewer scope, pool, and HVAC. If you are financing, your lender orders an appraisal and completes underwriting. For condos or townhomes, you review HOA documents once delivered and follow the statutory review and rescission timeline.
4) Disclosures and clearing title (concurrent with contingencies)
Sellers provide required California disclosures, including the Transfer Disclosure Statement, Natural Hazard Disclosure, and other forms. In coastal areas, historical coastal permits or related documents may be included. Any title issues, HOA questions, or permit items are worked through so the file is clear to close.
5) Final approval and prep to close (last 7–10 days)
You wire the balance of your down payment and closing costs to escrow. Escrow coordinates loan funding with your lender, payoffs for any seller mortgages, and prorations for property taxes, HOA dues, and utilities. You receive a final closing statement consistent with lender requirements.
6) Signing, funding, recording, done (closing day)
Both parties sign final documents with escrow. If applicable, the lender funds your loan. Escrow records the deed with the county, issues title insurance, pays off liens and commissions, and disburses seller proceeds.
Local factors that affect CdM escrows
Corona del Mar’s coastal setting and property mix bring unique considerations that can shape your timeline and risk.
Coastal and environmental items
Sea-level rise, bluff stability, erosion, flood zones, and FEMA flood insurance requirements are common review points. Natural Hazard Disclosures and, for waterfront or blufftop homes, optional geotechnical or coastal engineering evaluations can inform risk and future permitting. These items sometimes extend timelines if additional documentation is needed.
Older homes and unpermitted work
Many CdM homes have history and prior remodels. Unpermitted additions or work can surface during inspections or title review. Lenders and insurers may require documentation or resolution before closing, which can add steps or time.
HOA and condo specifics
HOA document delivery triggers a statutory review period. Buyers typically receive CC&Rs, budgets, reserve studies, insurance information, and rules. Financial health, special assessments, and occupancy or rental policies can impact both buyer decisions and loan approval.
Mello-Roos and special tax districts
Some Orange County neighborhoods include Mello-Roos or other special tax districts. Tax obligations are prorated in escrow and should be reviewed early so costs are understood before contingency removal.
Title issues and unique sale types
Mechanics’ liens and HOA liens are not uncommon in renovation-heavy markets. Trust, probate, and estate sales require additional documentation and typically benefit from longer escrows to accommodate legal processes.
What escrow costs and who usually pays
All fees are negotiable in your purchase agreement, and local customs can change. In Southern California, it is common, though not guaranteed, for sellers to pay the owner’s title policy premium and for buyers to pay the lender’s policy. Escrow fees are often split evenly, but one side may agree to cover more to strengthen an offer.
Common closing costs include:
- Escrow company fee for handling the transaction
- Title insurance policies for owner and lender
- County recording fees and any transfer taxes
- Prorations for property taxes, HOA dues, and utilities
- HOA resale document fees and processing charges
- Lender-related fees such as origination, appraisal, credit report, and recording
- Inspection costs and any agreed repairs or credits
Ask your escrow officer for a preliminary settlement estimate early. Reviewing line items upfront helps avoid surprises later.
Wire safety: protect your funds
Wire fraud targets real estate closings nationwide. To reduce risk, follow these steps:
- Confirm wiring instructions by calling your escrow officer using a verified phone number from the official contact sheet, not from an email.
- Never act on last-minute changes to wire instructions. Treat changes as red flags and re-verify by phone.
- Use secure portals provided by escrow or title for document exchange when available.
- Send a small test wire if timing allows, then verify receipt before sending the full balance.
Buyer checklist for Corona del Mar
- Deliver earnest money per the contract within the first days of escrow.
- Schedule inspections immediately to stay within your contingency window.
- Provide lender documents quickly and monitor appraisal timing.
- Read the preliminary title report and ask questions about exceptions or easements.
- Review HOA documents, reserves, and rules for condos and townhomes.
- Review NHDs and consider geotechnical input for waterfront or blufftop properties.
- Verify wiring instructions by phone before sending any funds.
Seller checklist for a smooth close
- Gather permits, manuals, and any recent inspection reports.
- Proactively address termite or WDO with a current report if you want to move quickly.
- Coordinate with the HOA early for timely delivery of resale documents.
- Disclose known material facts, unpermitted work, and any special assessments.
- Request payoff statements for existing loans early so escrow can prepare closing figures.
How to keep escrow on track
- Set realistic timelines. Typical financed escrows run about 30 days. Cash can be faster if due diligence is straightforward.
- Do not over-shorten contingencies without a plan. Tight inspection or loan windows can increase risk if appraisers, inspectors, or HOA docs are delayed.
- Communicate often. Quick responses to escrow, title, and lender requests keep your file moving.
- Plan for coastal nuances. If a property involves flood mapping, bluff stability, or coastal permits, start that review early in the contingency period.
When to bring in specialists
- Real estate attorney for complex title matters, probate or trust sales, 1031 exchanges, or disputes
- Geotechnical or coastal engineer for bluff, erosion, or seawall questions
- Structural engineer for suspected structural concerns
- Insurance broker to evaluate homeowners and potential flood insurance requirements
Ready to navigate escrow with local experts?
Escrow should feel organized and predictable, even in a competitive, design-forward market like Corona del Mar. With the right plan, clear communication, and early attention to coastal and HOA details, you can move from offer to keys with confidence. If you value design, discretion, and hands-on guidance, our boutique team is here to help you prepare, negotiate, and close with precision.
Reach out to bouHAUS for tailored buyer or seller guidance, from escrow planning to valuation and off-market access.
FAQs
How long does escrow take in Corona del Mar?
- Most financed purchases close in about 30 days, cash can be 7 to 21 days, and complex transactions like probate or 1031 exchanges can take 45 to 90 days or more.
Who typically pays title and escrow fees in Orange County?
- Customs vary by deal, but sellers often pay the owner’s title policy, buyers usually pay the lender’s policy, and escrow fees are commonly split, all subject to negotiation.
What inspections should Corona del Mar buyers order?
- Expect a general home inspection and a termite or WDO report, with optional roof, sewer scope, pool, HVAC, and geotechnical or coastal review for waterfront or blufftop properties.
How does HOA document review affect escrow timelines?
- Once HOA documents are delivered, buyers have a short statutory review window, commonly three days, which can impact contingency timing and decisions.
What should Newport Beach sellers prepare before opening escrow?
- Assemble permits, disclosures, HOA contacts or documents, payoff information, and consider obtaining a termite report to expedite buyer review.
How do cash offers change the escrow process in CdM?
- Cash removes loan underwriting and can shorten timelines, but inspections, title review, HOA review, and coastal considerations still set the pace.
