How Escrow Works For Burbank Homebuyers

Buying a home in Burbank is exciting, but the word “escrow” can make the process feel complex. You might be wondering who holds your deposit, what deadlines matter, and how you actually get the keys. You are not alone. Once you understand the steps and the local nuances, escrow becomes a clear path from offer to ownership. This guide walks you through escrow in Burbank from start to finish, with timelines, checklists, and practical tips so you can move forward with confidence. Let’s dive in.

Escrow basics in Burbank

Escrow is a neutral third party that holds your funds and key documents until all contract conditions are met. The escrow officer follows written instructions from you, the seller, your agents, and your lender. Escrow does not give legal advice, but it coordinates the details and protects both sides.

Here is who does what:

• Buyer and seller negotiate terms, sign documents, and meet deadlines.
• Your agent coordinates inspections, delivers documents, and keeps you on schedule.
• The escrow officer opens escrow, holds deposits, prepares settlement statements, and coordinates signing and recording.
• The title company issues the preliminary title report, clears liens, and provides title insurance.
• If you finance, the lender orders the appraisal, underwrites the loan, and wires loan funds.
• In Los Angeles County, the Registrar-Recorder/County Clerk records your deed and loan documents.

From offer to keys

Most Burbank escrows follow a clear sequence:

1. Offer accepted and escrow opened. You deliver your initial deposit.
2. Escrow and title order a preliminary title report and start clearing issues.
3. You complete inspections and review disclosures. You negotiate repairs or credits if needed.
4. Your lender completes the appraisal and final underwriting for loan approval.
5. Escrow coordinates final signing and wiring of funds.
6. Deed and loan are recorded, funds disbursed, and keys released.

Earnest money and deposits

Your earnest money, also called a good-faith deposit, shows the seller you are serious. It is held in escrow and applied to your purchase price at closing.

• Typical amounts in California range from about 1% to 3% of the purchase price. In competitive situations, deposits can be higher.
• The purchase agreement sets when the deposit is due, often at acceptance or within a few days.
• Whether the account is interest-bearing is set in your escrow instructions. Interest handling is spelled out in those instructions.
• The deposit may be refundable if you cancel within your contract protections. If you remove contingencies and then default, the seller may seek to keep the deposit as liquidated damages, subject to your contract.

Contingencies and deadlines

Contingencies protect you. They give you time to inspect, review title, and secure financing. Your agreement sets the deadlines for each contingency, and these dates matter.

Common buyer protections include:

• Inspection contingency or an option period that lets you inspect and negotiate repairs or cancel within a short window. In some California contracts, buyers may negotiate an option to terminate in exchange for a nonrefundable fee.
• Loan contingency if financing cannot be obtained by the deadline.
• Appraisal contingency if the property appraises below the purchase price.
• Title contingency to review and object to issues in the preliminary title report.
• HOA contingency for condos or planned communities to review association documents.

Once a contingency is removed or the deadline passes, your obligations may become unconditional. Mark these dates on your calendar and respond quickly to keep your protections intact.

Inspections and repairs in Burbank

A general home inspection is standard, but Burbank homes often benefit from specialized checks too.

• Common inspections include general home, roof, HVAC, electrical, plumbing, sewer lateral, and wood-destroying pest (termite) inspections.
• After inspections, you can request repairs or credits. The seller can agree, counter, or decline. Any agreement is finalized in writing during escrow.
• Local checks to confirm with your escrow officer or the City of Burbank: sewer lateral or other utility transfer requirements, smoke alarm and carbon monoxide compliance, and water heater bracing. Requirements vary by city within Los Angeles County, so verification matters.
• Burbank’s proximity to Hollywood Burbank Airport and major studio operations means noise and flight paths can be a factor. Your Natural Hazard Disclosure will indicate mapped hazards and can help you assess potential noise and environmental considerations.

Title and insurance essentials

Title work runs in the background while you complete inspections and financing.

• The preliminary title report shows current ownership, liens, easements, and exceptions. Review it and ask questions early.
• Any liens or judgments must be cleared before close. Escrow coordinates payoffs and releases.
• Your lender will require a lender’s title insurance policy. You are strongly encouraged to buy an owner’s title policy as well. It helps protect you against covered defects that may have existed before you took ownership.
• Title and escrow also check for municipal liens or assessments that could affect your property. In Los Angeles County, property tax records and the recording system are key sources.

Disclosures and taxes you should expect

California requires robust seller disclosures. Reviewing these quickly keeps escrow on track.

• The seller provides the Transfer Disclosure Statement and Seller Property Questionnaire that cover known material facts.
• A Natural Hazard Disclosure summarizes flood, fire, earthquake fault, and other mapped hazards.
• Homes built before 1978 include a lead-based paint disclosure.
• If the home is in an HOA, you receive association documents such as CC&Rs, bylaws, budget, minutes, and financials. There are cancellation rights tied to the timing of these deliveries, so review promptly.

On the tax side:

• Property taxes are based on Proposition 13. Expect prorations at closing so each party pays their share for the current tax period.
• A change in ownership often triggers a supplemental assessment, which can result in a separate tax bill after closing.
• Some homes may be in Mello-Roos or other special assessment districts. These will appear in the title report and disclosures.
• Transfer taxes vary. Los Angeles County charges a documentary transfer tax, and some cities add their own. Confirm with your escrow officer whether Burbank imposes any city-level transfer tax.

Typical Burbank timelines

In Southern California, most financed purchases close in about 30 to 45 days. Cash purchases can close faster, sometimes in 17 to 21 days, if everyone is ready and contingencies are limited.

Sample 30-day escrow

• Day 0: Offer accepted. You deliver your deposit to escrow.
• Days 1 to 3: Escrow opens. Inspections are scheduled. Title orders the preliminary report.
• Days 3 to 10: Inspections completed. You review and negotiate repairs or credits.
• Days 10 to 17: You remove the inspection contingency or use any negotiated option to terminate within the allowed period.
• Days 7 to 21: Appraisal occurs. Lender underwriting continues. You send any requested documents.
• Around Day 21: Loan contingency deadline. You obtain approval or exercise cancellation rights under the contract.
• Days 24 to 28: Final walk-through is set. Final loan documents are prepared.
• Day 30: You sign. Funds are wired. The deed and loan record. Keys are released.

Buyer checklist during escrow

Use this checklist to stay on track.

Right after acceptance

• Send your earnest money deposit as the contract requires.
• Save your escrow officer’s contact information and escrow number.
• Provide the fully executed purchase agreement to escrow and title.

First week

• Schedule general and pest inspections immediately.
• Order or review your Natural Hazard Disclosure and preliminary title report.
• If applicable, request HOA documents and start your review as soon as they arrive.
• Provide lender documents such as pay stubs, asset statements, and identification.

Mid-escrow

• Review inspection reports. Finalize repair requests or credits.
• Confirm appraisal completion and result with your lender and agent.
• Verify you received required seller disclosures.
• Ask escrow or title to explain any liens or exceptions and how they will be cleared.

Before closing

• Do a final walk-through 24 to 48 hours before close.
• Confirm wiring instructions by calling escrow at a known number. Stay alert for fraud.
• Review your Closing Disclosure and settlement statement so fees and prorations match expectations.
• Schedule your signing appointment and arrange any required notarization.

Closing costs to plan for

Your total buyer closing costs in California typically range from about 2% to 5% of the purchase price. The exact amount depends on your loan, the property type, and what is negotiated in the contract.

Common cost categories include:

• Lender fees such as appraisal, origination, credit report, and underwriting.
• Title and escrow fees such as the lender’s title policy, optional owner’s title policy, escrow fee, notary, and recording.
• Prorations and prepaids such as property taxes, prepaid interest, and homeowners insurance.
• Miscellaneous items such as HOA transfer fees or repair holdbacks if agreed.

Wire transfers and fraud safety

Wire fraud has become a real risk during real estate closings. A few careful steps protect you and your funds.

• Call your escrow officer at a trusted phone number to confirm wiring instructions before you send money.
• Never rely on wiring instructions sent only by email. If anything changes, confirm by phone.
• Use secure portals when available and verify final amounts immediately before sending funds.

Common delays and how to avoid them

Escrow moves quickly when everyone communicates and responds promptly. Here is how to reduce delays.

• Lender-related delays. Send complete documents fast and answer underwriter questions right away.
• Missing or late disclosures and HOA documents. Ask for seller disclosures and HOA packages immediately after acceptance.
• Title issues discovered late. Request the preliminary title report early and review it with your agent.
• Repair negotiations that stall. Set reasonable deadlines and consider a repair credit or an escrow holdback if needed.
• Recording delays in LA County. Ask escrow about current recording timelines and plan signings and couriers accordingly.

Closing day and what happens after

On closing day, you sign, funds are wired, and escrow submits your deed and loan for recording in Los Angeles County. Once recording is confirmed, escrow disburses funds and your agent coordinates keys.

After closing, watch for your supplemental tax bill due to the new assessed value. If your home is in an HOA, check any move-in procedures or fees so your transition is smooth.

If you want a steady hand through every step of escrow, connect with Craig Strong for local guidance and a clear plan from offer to keys.

FAQs

What is escrow in California home buying?

• Escrow is a neutral third party that holds funds and documents, follows written instructions from the parties and lender, and releases money only after all contract conditions are met.

How much earnest money do Burbank buyers pay?

• A typical range is 1% to 3% of the purchase price, though deposits can be higher in competitive situations and are applied to the purchase price at closing.

How long does escrow take in Burbank?

• Most financed escrows close in about 30 to 45 days, while cash purchases can close in 17 to 21 days if contingencies are limited and coordination is strong.

What contingencies protect me during escrow?

• Common protections include inspection, loan, appraisal, title, and HOA contingencies, plus in some cases a negotiated option period with a separate fee.

Do I need owner’s title insurance in Burbank?

• Lenders require a lender’s policy, and buyers are strongly encouraged to purchase an owner’s policy to help protect against covered title defects that predate closing.

What local issues should Burbank buyers check?

• Verify any city compliance items like sewer lateral or retrofit certifications and consider airport noise factors, all of which should be covered in disclosures and inspections.

How can I avoid wire fraud during closing?

• Always confirm wiring instructions by calling your escrow officer at a known number and never act on email-only instructions without voice verification.