Ever hear someone say they are “in escrow” and wonder what that really means? If you are buying or selling in Crescent City or anywhere in Del Norte County, escrow is the neutral middle that keeps money, documents, and deadlines on track. It can feel complex the first time. This guide explains the steps, local filings, timing, and how to avoid delays so you can close with confidence. Let’s dive in.
Escrow basics in California
Escrow is a neutral third party that holds funds and documents until all contract conditions are met. It follows written instructions from you, the other party, and your lender if you have one. When everything is complete, escrow releases money, records the documents, and closes the file.
In California, licensed escrow companies or title companies act as the escrow holder. Escrow must stay neutral and does not give legal advice. Its job is to follow the signed instructions and make sure all conditions are satisfied before money changes hands.
Escrow services are regulated in California through state oversight. Title companies also have their own regulatory and insurance frameworks. It helps to remember the difference between the two services you may see in one office: title insurance protects against certain past title defects, while escrow is the process that manages funds and paperwork. Early in escrow you will receive a preliminary title report, which is a snapshot of recorded liens, easements, and exceptions that must be reviewed and cleared if needed.
Who does what in a Crescent City closing
- Escrow officer: holds funds, coordinates signatures, balances the closing statement, and manages recording and disbursement.
- Title officer: researches the chain of title, issues the preliminary title report, and provides title insurance at closing.
- Lender and loan officer: orders the appraisal, underwrites the loan, and funds at closing for financed buyers.
- Buyer’s and seller’s agents: guide negotiations, inspections, timelines, and deliverables to escrow.
- Del Norte County Recorder and Assessor: handle recording after closing and property tax filings.
The escrow timeline in Del Norte County
Day 0 to opening
- Offer is accepted and a contract is signed. The buyer typically deposits earnest money.
- Escrow is opened within 1 to 2 days. You get an escrow number, initial instructions, and wire or delivery directions for your deposit.
- Title begins the search and prepares the preliminary title report.
The contingency period
- Typical inspection windows are about 7 to 17 days for general inspections. If you have a loan, your lender orders an appraisal.
- You complete inspections such as home, pest, and for some properties on septic or well. You may negotiate repairs or credits.
- If needed, you can agree to an escrow holdback with clear written rules for how and when funds are released after repair work.
Underwriting and loan approval
- Your lender reviews the appraisal and your file, then clears conditions. Underwriting and appraisal often take 1 to 3 weeks based on workload and property specifics.
Final escrow prep
- Escrow drafts your final settlement figures. Financed buyers receive a Closing Disclosure, which must be delivered at least 3 business days before the loan is finalized.
- You wire your funds or bring certified funds. The lender wires loan proceeds to escrow.
- Escrow confirms the seller’s payoff amounts, collects signatures, and verifies all contract conditions are complete.
Recording and disbursement
- Escrow submits the signed deed and, if applicable, the deed of trust for recording with the Del Norte County Recorder.
- After recording, escrow disburses funds. This includes paying off liens, paying the seller, and paying closing costs.
- Title insurance policies are issued after recording.
How long it takes locally
- Cash purchases with clear title can close in about 7 to 14 days if everyone is ready.
- With a loan, most escrows close in about 30 to 45 days. Some close sooner around 21 days, while others need more time.
- Recording timing depends on county volume and staffing. Plan for same day to a few business days once escrow delivers documents, and confirm the current turnaround early.
Local filings and fees to expect
- Recording of deed and deed of trust: handled with the Del Norte County Recorder after closing.
- Preliminary Change of Ownership Report: known as a PCOR, this form accompanies the deed so the Assessor can determine property tax reassessment. Escrow usually prepares and files this with you.
- Transfer taxes and fees: documentary transfer taxes and recording fees vary by county and city. Your escrow officer will calculate and collect any amounts due. Ask for an estimate and current exemptions.
- Local timing: ask escrow to estimate recording turnaround so you can plan key exchange and move dates.
Property factors that can change timing
Crescent City is coastal, and parts of Del Norte County are rural. That means a few property features can add steps or affect underwriting and title review.
- Coastal conditions: standard California disclosures cover natural hazards and potential inundation or erosion. Review any coastal permits or bluff setbacks.
- Flood zones and insurance: if a property sits in a FEMA flood zone, lenders may require flood insurance before closing.
- Rural systems: septic systems, private wells, timberland designations, mineral rights, or access and easement questions can lead to extra inspections and title work.
- Homeowners associations: if there is an HOA, escrow must collect key documents. Waiting on HOA packets can slow closing, so request them early.
Common issues that delay escrow
- Undisclosed liens, UCC filings, mechanics’ liens, or judgment liens that need payoff or releases.
- Slow or incorrect mortgage payoff statements from lenders.
- Title vesting differences between how the seller holds title and how the contract is written.
- Missing signatures, notary errors, or wrong deed forms.
- Property tax proration questions or reassessment concerns related to the PCOR.
Wire transfers and safety checklist
Wire fraud is a real risk. Protect yourself with simple habits.
- Call to confirm wiring instructions using a phone number you trust, not just an email.
- Do not rely only on emailed instructions or last minute changes. Verify every time.
- Double check the bank name, routing number, and account number with your escrow officer.
- Ask whether your escrow company uses a secure portal or additional verification steps.
What buyers and sellers should have ready
Buyer checklist
- Government ID that matches your escrow instructions.
- Earnest money funds and the final closing amount by wire or certified funds. Confirm exact amounts with escrow.
- Lender paperwork, a homeowner’s insurance binder, and your lender’s contact for escrow.
- Power of attorney if you cannot sign in person, arranged and approved early.
- If there is an HOA, be ready for any document or transfer fees.
Seller checklist
- Mortgage payoff information and your lender’s contact.
- Signed deed and required seller disclosures as applicable in California.
- Keys, remotes, and any HOA documents you hold.
- Forwarding address and taxpayer ID information for reporting.
For both parties
- Confirm wire instructions by phone before sending money.
- Ask escrow which PCOR details they need and how you will sign.
- Provide any special signing needs if you are out of the area so escrow can schedule notaries.
Holdbacks, repairs, and credits
Sometimes work cannot be finished before closing or you prefer to manage it after you receive the keys. An escrow holdback can set aside funds and release them when work is complete.
- Put the terms in writing. The instructions should list the repair, cost, who verifies completion, and the release date.
- For specialized items like septic or coastal work, attach a contractor estimate to the instructions.
- If you agree to a credit instead, escrow will show it on the final settlement statement.
When to involve the Green Pacific team
- Right after offer acceptance: we help confirm the escrow and title company and guide you on delivering the earnest money safely.
- Before wiring any funds: we confirm the correct escrow officer and secure wiring steps.
- When inspections arrive or repairs are requested: we coordinate with escrow on holdbacks, credits, or prorations.
- Before you remove loan contingencies and at the final walk through: we check that escrow has what it needs and confirm the estimated closing date and funds.
- One to three business days before closing: we verify recording and payment timelines and explain where and how you will sign.
- If you are out of the area: we arrange remote signing, notarization, and delivery to the Del Norte County Recorder as needed.
A smooth escrow comes down to clear instructions, on time deliverables, and proactive communication. With local coordination and the right preparation, closing in Crescent City can feel simple and stress free. If you want a clear plan from offer to keys, the Green Pacific Real Estate Team is ready to help.
FAQs
What is escrow in a California home purchase?
- Escrow is a neutral third party that holds money and documents, follows your signed instructions, and records the deed when all conditions are met.
How long does escrow take in Crescent City?
- Cash deals can close in about 7 to 14 days with clear title, while most financed purchases finish in about 30 to 45 days depending on underwriting.
What is the PCOR in Del Norte County?
- The Preliminary Change of Ownership Report is filed with the deed at recording so the Assessor can determine any property tax reassessment.
Do I need title insurance if I pay cash?
- Lenders require a lender’s policy when there is a loan, and buyers paying cash should consider an owner’s policy to protect against certain past title defects.
What happens on recording day in Del Norte County?
- Escrow submits the deed for recording with the County Recorder, then disburses funds, pays off liens, and issues title policies once recording is confirmed.
How can I avoid wire fraud during escrow?
- Always confirm wiring instructions by phone using a trusted number, and never rely only on email or late changes without verification.
