Buying or selling in Sonoma and wondering what actually happens in escrow? You are not alone. Escrow is where all the money, documents, and deadlines come together, and small missteps can cause delays. In this guide, you will learn how escrow works in Sonoma County, what you are responsible for, and how to keep your closing on track. Let’s dive in.
Escrow basics in Sonoma County
Escrow is a neutral, regulated process that holds funds and documents until your contract instructions are met. In California, escrow companies and title companies must follow state rules designed to protect you as a consumer. You will see a licensed escrow holder manage deposits, coordinate lender and title requirements, and direct recording at closing. For an overview of consumer protections, review the California Department of Financial Protection and Innovation’s page on escrow services and licensing.
Local practice in Sonoma County generally follows California Association of Realtors contract norms. Market conditions in the North Bay can influence how large deposits are, how fast contingency timelines run, and which party pays specific closing costs. These items are negotiable, so your exact terms may differ from a nearby sale.
Who is involved
You will work with several parties throughout escrow:
- You and the other party to the contract
- Your real estate agents
- Escrow officer or title company escrow officer
- Your lender if you are financing
- Title company underwriting and insurance
- Sonoma County Recorder’s Office for recording at close
Each party has defined tasks, but the escrow officer coordinates the moving parts so funds and documents are correct before anyone closes.
Step-by-step timeline
While every deal is unique, most Sonoma transactions follow a predictable order:
- Offer accepted and escrow opened. The signed purchase agreement goes to the escrow holder.
- Earnest money deposit. You deliver funds to escrow per the contract, usually within a few business days.
- Contingency periods start. Inspection, loan, appraisal, and HOA review clocks begin based on your contract.
- Title search. The title company issues a preliminary title report with recorded liens, easements, and exceptions.
- Disclosures and inspections. You review seller disclosures, order inspections, and assess findings.
- Lender underwriting. If financed, the lender orders an appraisal and processes your loan.
- Contingency removal or negotiation. You remove contingencies, request repairs or credits, or cancel within the deadlines.
- Final figures and signing. Escrow prepares settlement statements and coordinates signatures.
- Funding and recording. Lender wires funds. Escrow disburses and records documents with the county.
- Close and keys. Title insurance is issued and possession transfers per your agreement.
Example 21-day escrow
Here is a sample financed escrow to visualize the pace. Your dates will follow your signed contract and lender needs.
- Day 0: Offer accepted and escrow opened
- Days 1–3: Earnest money deposited
- Days 1–10: General and pest inspections; disclosures reviewed
- Days 3–17: Loan underwriting; appraisal ordered
- Days 7–10: Preliminary title report delivered and reviewed
- Day 17: Loan contingency deadline
- Days 18–20: Final walkthrough; closing figures finalized
- Day 21: Funding and recording at Sonoma County; keys released
Earnest money essentials
Earnest money shows good faith and is held in a trust account by escrow. In many California markets, deposits range from about 1 to 3 percent of the purchase price. In competitive North Bay situations, you may see larger deposits, such as 2 to 5 percent. The exact amount is negotiable.
- Delivery timing: Many contracts call for delivery within three business days after acceptance, though your agreement can set any time frame.
- Where it goes: Escrow places funds in a trust account and holds them until both parties’ instructions are met.
- If the sale cancels: If you cancel within valid contingency periods, deposits are usually refundable per the contract. After contingency removal, canceling can put your deposit at risk. Disputes are held by escrow until resolved by mutual agreement, arbitration, or court per the contract.
Contingencies and typical timing
Contingencies protect you while you investigate the property and finalize financing. Common contingencies include inspection, loan, appraisal, title review, HOA review for common-interest communities, and the sale of your current home.
Sonoma County timing often mirrors standard California forms, adjusted for market conditions:
- Inspection contingency: About 7 to 14 days. In competitive offers, this can shorten to 3 to 5 days or be waived. Waiving increases risk.
- Loan and appraisal contingency: A common baseline is 17 days, though some loans require more time.
- Title review: Often 7 to 10 days from receiving the preliminary title report.
Your agent and lender will help you balance speed with protection.
Disclosures you will review
California requires a Transfer Disclosure Statement, a Seller Property Questionnaire, lead-based paint disclosure for homes built before 1978, Megan’s Law notice, and a Natural Hazard Disclosure. In Sonoma County, wildfire risk is often a key topic. You will typically receive fire hazard information that references CAL FIRE maps for State Responsibility Areas and Very High Fire Hazard Severity Zones. You can learn more on CAL FIRE’s page for Fire Hazard Severity Zones.
Rural properties may involve wells and septic systems. These require additional inspections and permit checks that can affect loan requirements and timelines. For county guidance, visit Permit Sonoma.
For condominiums and planned communities, the seller provides HOA documents. You will have time to review CC&Rs, budgets, rules, and meeting minutes before removing your HOA contingency.
Title, recording, and closing
The title company performs a title search and issues a preliminary report. Your lender will require a lender’s title insurance policy at closing. The owner’s policy is commonly a seller-paid cost in many Northern California transactions, but all title and escrow fees are negotiable.
After lender funding, escrow submits documents for recording with the Sonoma County Recorder. Recording times can vary based on county volume and may add a few business days. For procedures and fee information, refer to the Sonoma County Recorder’s Office.
Who pays what
Closing costs are shared and negotiated:
- Buyer typically pays lender-related costs such as origination, appraisal, and the lender’s title policy.
- Seller often pays the owner’s title policy in many Northern California deals, but this can change by agreement.
- Escrow fees may be split between parties.
- County and any applicable city transfer taxes are collected at closing. Practices vary by location and negotiation. For county tax questions, start with the Treasurer-Tax Collector.
Local factors that can delay closing
- Wildfire insurance availability: In higher-risk zones, securing insurance can take time. Begin quotes early since lenders require proof of coverage to fund. See CAL FIRE’s hazard resources for context on risk mapping.
- Septic, well, and permits: Rural systems may need inspections, water quality tests, or permit verification. Build additional time into your contingencies if these apply.
- Wire fraud risk: Real estate transactions are frequent targets for wire scams. Verify any wire instructions by calling your escrow officer using a trusted phone number. The FBI outlines common tactics on its page for real estate scams and wire fraud.
Tips to keep escrow on track
- Confirm deposit timing and wire instructions directly with your escrow officer.
- Order homeowner’s insurance immediately after acceptance, especially for properties in mapped fire zones.
- Calendar your contingency dates to avoid automatic expirations.
- Read the preliminary title report early and ask questions right away.
- Coordinate with your lender to lock appraisal timing and underwriting conditions.
- Request repairs or credits before removing contingencies.
A quick hypothetical
On a $900,000 purchase with a 2 percent deposit, you would place $18,000 into escrow within the agreed period. You might set a 10-day inspection contingency, a 17-day loan contingency, and an overall 21- to 30-day escrow depending on loan type and contract terms. Title and escrow fees, transfer taxes, and policy allocations would be negotiated in your offer.
When you understand each step, you can negotiate stronger terms without taking unnecessary risk. If you want a clear plan tailored to your goals and timeline in Sonoma, connect with Karteek Patel to map your escrow strategy from offer to recording.
FAQs
What is escrow in a Sonoma County home purchase?
- Escrow is a neutral third party that holds funds and documents, coordinates lender and title requirements, and manages recording so the sale closes according to your contract and California regulations.
How much earnest money is common in Sonoma County?
- Many California offers use 1 to 3 percent deposits, while competitive North Bay offers may use 2 to 5 percent. The amount is negotiable in your contract.
When do I deposit my earnest money after acceptance?
- Most contracts call for delivery within a few business days, often three. Your signed agreement controls the exact timing and delivery method.
What contingencies should I expect as a Sonoma buyer?
- Typical contingencies cover inspections, loan, appraisal, title review, and HOA documents. Each has a negotiated deadline tied to your contract.
How long does recording take with Sonoma County?
- Recording occurs after funding. Processing times depend on county volume and can add a few business days. Check the Sonoma County Recorder for current processing guidance.
What can delay a Sonoma closing the most?
- Late insurance binders in wildfire zones, unresolved septic or well items, and wire fraud issues are common causes. Start insurance and inspections early and verify all wire instructions by phone.
