Navigating a real estate transaction in San Francisco involves a series of steps that can be complex and time-sensitive, especially in one of the nation’s most competitive housing markets. One of the most critical components of a home purchase or sale is escrow—a neutral, third-party process designed to protect both buyer and seller while contractual obligations are fulfilled. Whether you're purchasing a condo in South Beach or selling a single-family home in Noe Valley, understanding the SF escrow process is key to ensuring a smooth and successful closing.
In San Francisco, the escrow timeline typically begins once a purchase agreement is signed and accepted. At that point, the escrow holder—usually a title company—takes over to manage the flow of documents and funds until the transaction closes. Because every deal is unique, the escrow process may vary slightly based on property type, financing, contingencies, and negotiation terms. However, certain fundamentals apply across nearly all transactions in the city.
Opening Escrow: What Happens After Offer Acceptance
The SF escrow process officially begins when a fully executed purchase agreement is delivered to the escrow officer, along with the buyer’s earnest money deposit. This deposit, typically 3% of the purchase price in San Francisco, is held in a secure escrow account and acts as a good faith gesture that the buyer intends to move forward. At this point, the escrow officer assigns an escrow number and begins managing transaction logistics.
From there, the buyer and seller each receive an escrow package, which includes instructions, disclosures, and requests for personal information necessary to complete the transaction. Buyers also begin coordinating financing if they’re using a mortgage, while sellers typically provide any required property-specific documentation, including HOA documents for condos or tenant information for multi-unit properties.
The escrow officer’s role is to remain neutral throughout the process, ensuring that all contractual obligations are met, funds are properly accounted for, and legal documents are prepared for the close of escrow.
From there, the buyer and seller each receive an escrow package, which includes instructions, disclosures, and requests for personal information necessary to complete the transaction. Buyers also begin coordinating financing if they’re using a mortgage, while sellers typically provide any required property-specific documentation, including HOA documents for condos or tenant information for multi-unit properties.
The escrow officer’s role is to remain neutral throughout the process, ensuring that all contractual obligations are met, funds are properly accounted for, and legal documents are prepared for the close of escrow.
Title Search and Preliminary Report
A key function of the SF escrow process is ensuring that title is clear and transferable. Shortly after escrow is opened, the title company conducts a thorough search of public records to verify ownership and identify any liens, easements, or encumbrances that could affect the transaction. This includes property taxes, loan balances, judgments, or unpaid contractor work.
The result is a Preliminary Title Report (Prelim), which is shared with the buyer and their agent. Reviewing this report is a vital part of due diligence. In San Francisco, where properties may have long histories and unique zoning designations, buyers must pay close attention to anything that may affect future use or ownership rights. If title issues are discovered, they must be resolved before the transaction can close.
The escrow officer works closely with both parties to ensure title is insurable and ready for transfer on the agreed-upon closing date.
The result is a Preliminary Title Report (Prelim), which is shared with the buyer and their agent. Reviewing this report is a vital part of due diligence. In San Francisco, where properties may have long histories and unique zoning designations, buyers must pay close attention to anything that may affect future use or ownership rights. If title issues are discovered, they must be resolved before the transaction can close.
The escrow officer works closely with both parties to ensure title is insurable and ready for transfer on the agreed-upon closing date.
Contingency Periods and Inspections
The SF escrow process also includes critical contingency periods—timeframes in which the buyer conducts inspections, secures financing, and reviews seller disclosures. In San Francisco, typical contingencies include property condition, loan approval, and appraisal. Each has a designated removal date, outlined in the purchase contract.
Property inspections, including general home, roof, pest, and sewer lateral inspections, are usually completed early in escrow. If issues are discovered, the buyer may request repairs or credits, or in rare cases, withdraw from the agreement. Sellers in San Francisco often conduct pre-listing inspections to streamline the process and avoid surprises during escrow.
Once contingencies are removed in writing, the buyer’s earnest money becomes non-refundable, and the transaction moves toward closing.
Property inspections, including general home, roof, pest, and sewer lateral inspections, are usually completed early in escrow. If issues are discovered, the buyer may request repairs or credits, or in rare cases, withdraw from the agreement. Sellers in San Francisco often conduct pre-listing inspections to streamline the process and avoid surprises during escrow.
Once contingencies are removed in writing, the buyer’s earnest money becomes non-refundable, and the transaction moves toward closing.
Loan Funding and Final Document Review
For financed purchases, loan underwriting plays a major role in the second half of the SF escrow process. Once the buyer receives final loan approval, the lender sends loan documents to the title company. The buyer then signs all necessary paperwork, including the promissory note and deed of trust, often in person or with a mobile notary.
Shortly afterward, the buyer deposits any remaining funds needed to close, including down payment and closing costs, into the escrow account. The lender funds the loan into the same account, and the escrow officer begins final balancing to ensure all amounts are correct.
Once all documents are signed and funds are verified, the title company prepares the grant deed for recording. In San Francisco County, documents are electronically submitted to the Recorder’s Office, typically before noon on the closing day.
Shortly afterward, the buyer deposits any remaining funds needed to close, including down payment and closing costs, into the escrow account. The lender funds the loan into the same account, and the escrow officer begins final balancing to ensure all amounts are correct.
Once all documents are signed and funds are verified, the title company prepares the grant deed for recording. In San Francisco County, documents are electronically submitted to the Recorder’s Office, typically before noon on the closing day.
Closing Escrow and Recording
Recording is the final step of the SF escrow process and signifies that the transaction is officially complete. Once the County Recorder confirms the new deed is recorded, ownership legally transfers from the seller to the buyer. Only at that point can keys be released and occupancy begin, unless otherwise negotiated.
In most cases, recording occurs the same day that all funds are received and documents are signed. However, it’s important to note that Friday closings or end-of-month transactions may experience slight delays due to volume.
After closing, the buyer receives a final settlement statement and the recorded deed, while the seller receives their net proceeds via wire transfer. The escrow company then closes the file and issues a title insurance policy to the buyer, guaranteeing ownership free of undisclosed liens or title defects.
In most cases, recording occurs the same day that all funds are received and documents are signed. However, it’s important to note that Friday closings or end-of-month transactions may experience slight delays due to volume.
After closing, the buyer receives a final settlement statement and the recorded deed, while the seller receives their net proceeds via wire transfer. The escrow company then closes the file and issues a title insurance policy to the buyer, guaranteeing ownership free of undisclosed liens or title defects.
Unique Aspects of the SF Escrow Process
San Francisco’s real estate market includes a few unique nuances that impact escrow. Many properties are governed by homeowner associations (HOAs), which require timely delivery of HOA documents and approval of any fees. Additionally, tenants' rights laws in San Francisco can affect multi-unit or tenant-occupied properties, adding another layer of complexity to closing.
It’s also important to note that escrow periods in San Francisco tend to move quickly, with average timelines ranging from 21 to 30 days. Buyers and sellers must stay proactive, responsive, and well-advised to meet deadlines and protect their interests.
Working with a local real estate team that understands the intricacies of the SF market is essential to navigating the escrow process smoothly. The competitive nature of San Francisco real estate means that even small delays or overlooked details can affect the outcome of a transaction.
It’s also important to note that escrow periods in San Francisco tend to move quickly, with average timelines ranging from 21 to 30 days. Buyers and sellers must stay proactive, responsive, and well-advised to meet deadlines and protect their interests.
Working with a local real estate team that understands the intricacies of the SF market is essential to navigating the escrow process smoothly. The competitive nature of San Francisco real estate means that even small delays or overlooked details can affect the outcome of a transaction.
Navigate the SF Escrow Process With Novo Real Estate
Whether you’re buying your first home in San Francisco or preparing to list a property, understanding the SF escrow process is essential for a successful transaction. The local market is fast-paced and detail-driven, requiring expert guidance at every stage. Connect with Novo Real Estate for personalized support, trusted representation, and a seamless experience from offer to closing. Their team of professionals understands the intricacies of escrow and is committed to helping clients achieve their goals in San Francisco’s unique real estate landscape.
