Timelines, Tips & Common Delays –
Navigating a real estate escrow in Los Angeles can feel like being stuck in 405 traffic – frustratingly slow with unexpected delays. As a top-rated escrow company serving LA for over 15 years, we’ve seen it all. Here’s what today’s buyers and sellers need to know about the escrow process in our competitive market.
Why LA Escrow Is Different
Los Angeles isn’t just another California housing market. Three key factors make our escrow process unique:
1. Luxury Market Complexities – High-value properties ($3M+) often involve international buyers, LLCs, and complex financing
2. Competitive Conditions – All-cash offers and waived contingencies create faster timelines
3. Regulatory Hurdles – Strict local ordinances (like LA’s new mansion tax) add paperwork
The Step-by-Step Escrow Timeline
Days 1-3: Opening Escrow
– Buyer deposits earnest money (typically 3% of purchase price)
– Escrow officer orders preliminary title report
– Both parties sign escrow instructions
Pro Tip: In hot neighborhoods like Silver Lake or Venice, sellers often require proof of funds within 24 hours of offer acceptance.
Days 4-17: Contingency Period
– Buyer completes inspections (general, pest, sewer scope)
– Appraisal ordered by lender
– Title issues resolved
LA Reality Check: Earthquake retrofit requirements in older buildings can add 7-10 days for specialist inspections.
Days 18-30: Loan Processing
– Underwriter reviews file
– Additional documentation requests common
– Final loan approval issued
Current Challenge: Major banks are taking 35+ days for jumbo loans over $1.5M.
Days 31-45: Closing & Funding
– Signing of final documents
– Buyer conducts final walkthrough
– Lender funds the loan
– County records transfer of ownership
Most Common LA Escrow Delays (And How to Avoid Them)
1. Title Issues (30% of Delays)
– Unpaid liens from previous owners
– Boundary disputes in hillside properties
– Missing signatures on inherited properties
Solution: Order a preliminary title report within 48 hours of opening escrow.
2. Appraisal Gaps (25% of Delays)
– Especially problematic in rapidly appreciating areas like Highland Park
– Can add 2-3 weeks for negotiations or second appraisals
Solution: Include appraisal gap coverage in your offer.
3. Loan Underwriting (20% of Delays)
– Stricter requirements for self-employed buyers
– Common in creative industries (entertainment, freelancers)
Solution: Get pre-underwritten, not just pre-approved.
Accelerated Escrow Options
For those needing to close fast:
| Option | Timeline | Best For
| All-Cash Purchase | 7-10 days | Investors, luxury buyers
| Hard Money Loan | 10-14 days | Fix-and-flip properties
| iBuyer Program | 14-21 days | Sellers needing quick close
The New “Mansion Tax” Impact
Since April 2023, LA’s Measure ULA adds:
– 4% tax on sales $5M-$10M
– 5.5% tax on sales over $10M
Escrow Implications:
– Additional documentation required
– Often extends closing by 3-5 business days
– Some buyers restructuring deals to stay under thresholds
Why Your Escrow Company Matters
A quality LA escrow officer will:
✔ Catch title issues before they delay closing
✔ Coordinate effectively between 10+ parties (agents, lenders, inspectors)
✔ Understand local quirks (like Hollywood Hills easement disputes)
At Secured Trust Escrow, our average LA residential escrow closes in 32 days – 20% faster than the county average.
Final Checklist for LA Homebuyers
☑️ Verify escrow company license with DFPI
☑️ Get pre-underwritten if financing
☑️ Budget for additional city/county fees
☑️ Confirm wire instructions in person or by verified phone call
Need a Smooth LA Escrow Experience?
🏡 Contact our escrow specialists today for a stress-free closing.
