Buying in Cupertino can move fast. Between multiple offers, short timelines, and lots of paperwork, escrow can feel like a black box. You just want to close on time with no surprises. In this guide, you’ll learn how escrow works in California, what to expect in Cupertino, how long it takes, what you pay, and how to avoid delays or risk. Let’s dive in.
Escrow basics in California
Escrow is a neutral third party that holds funds and documents while you and the seller complete the terms of the purchase contract. The escrow company follows written instructions and releases money and the deed only when conditions are met.
In California, escrow is separate from your lender and your agents. It coordinates with the lender, title insurer, county recorder, homeowner association if applicable, and both sides’ representatives.
Most Bay Area escrows run about 30 to 45 days. In Cupertino’s competitive market, 21-day escrows or other accelerated timelines are common, but longer closes also happen if both parties agree.
Cupertino escrow timeline at a glance
Every contract is different, but here is a practical sequence you can expect.
1) Offer accepted and open escrow
- Escrow opens a file using your signed purchase agreement.
- You deposit your earnest money within the contract deadline.
- Confirm your loan pre-approval is current and that funds for the deposit and closing are accessible.
2) Early days: title and disclosures
- Escrow orders a preliminary title report listing liens, easements, and requirements to deliver clear title.
- The seller delivers required disclosures, including the Transfer Disclosure Statement and a Natural Hazard Disclosure.
- You schedule inspections such as general home, roof, HVAC, sewer, and wood-destroying pest inspections as needed.
- You provide your lender any remaining documents for underwriting.
3) Contingency periods
- Inspection contingency: review reports, request repairs or credits, or cancel per your timeline. Typical windows are around 17 days, but your contract controls.
- Appraisal and loan: the lender orders an appraisal and completes underwriting. If the appraisal is lower than price, you may renegotiate or bring additional cash.
- Title review: confirm that liens, easements, covenants, and any special assessments are acceptable or cleared.
4) Mid-escrow: removing contingencies
- When satisfied with inspections, loan, and title, you remove contingencies in writing per the contract.
- Escrow coordinates payoff of seller liens, any HOA certificates, and other required items.
5) Final steps before closing
- Your lender issues final loan documents.
- Escrow prepares your settlement figures. If you are financing, you receive a Closing Disclosure no later than 3 business days before closing.
- You wire the balance of your down payment and closing costs. Always confirm wire instructions by phone using a known number.
6) Closing day
- The lender funds your loan and escrow records the deed with the county recorder.
- Title insurance policies are issued.
- Escrow disburses funds to the seller and you receive keys after recording, unless your contract states otherwise.
Key Cupertino disclosures and local factors
- Natural hazards: The Natural Hazard Disclosure may identify seismic zones, fault rupture zones, wildland-urban interface fire areas, or flood zones. Review these because they can affect insurance and retrofit considerations.
- Wood-destroying organisms: A pest inspection and, if needed, remediation and clearance are common in California and may be required before closing.
- Title items: Watch for liens, easements, covenants, and any special taxes such as Mello-Roos or other assessments that continue after transfer.
- HOAs: If the property belongs to an HOA, you will receive CC&Rs, budgets, meeting minutes, and an estoppel certificate. Review fees, rules, and any upcoming assessments.
- Permits: For older homes, confirm permits for past renovations. Unpermitted work can affect future financing or insurance.
- Market dynamics: In multiple-offer scenarios, buyers sometimes shorten or waive contingencies or increase earnest money. This can strengthen an offer but raises risk. Understand the tradeoffs before you commit.
Costs and who pays what
Your closing costs will depend on your loan and your contract. Here are common items for buyers:
- Lender fees such as origination, underwriting, and credit report
- Loan discount points if you choose to pay them
- Lender’s title insurance policy
- Escrow fees, which are often split between buyer and seller
- Recording fees and any transfer taxes charged by county or city
- Prorations for property taxes, HOA dues, and utilities
- Homeowner’s insurance premium for the first year
- HOA transfer or capital contribution fees if applicable
- Inspection costs, including pest inspection
In California, who pays escrow and title fees is negotiable. A 50-50 split is common, but terms vary by deal. In competitive Cupertino offers, seller concessions toward buyer closing costs may be limited.
How prorations and taxes work
- Property taxes, HOA dues, water, sewer, and similar items are prorated to your closing date.
- After your purchase, a change in ownership may trigger a supplemental property tax bill. This is separate from regular tax bills and may arrive after closing.
- Documentary transfer taxes and recording fees can vary by county and city. Confirm specifics with the Santa Clara County Recorder and related offices for your transaction.
Title insurance and your loan
If you finance the purchase, your lender will require a lender’s title policy that protects the lender’s interest. An owner’s title policy is optional but recommended because it protects your ownership against covered title defects discovered later.
The preliminary title report will outline what must be cleared before closing, including any liens or judgments. Read it early and ask questions so escrow has time to resolve issues.
Common escrow risks and how to avoid them
- Appraisal gaps: When prices move fast, appraisals sometimes come in under contract price. Plan for cash to cover a gap or a strategy to renegotiate.
- Title surprises: Unrecorded or unexpected liens can surface. Review the preliminary title report right away and allow time for curative steps.
- HOA delays: Estoppel letters or documents can take time. Request them early.
- Inspection findings: Pest or condition issues can lead to repair negotiations. Keep deadlines in mind as you evaluate options.
- Loan underwriting hiccups: Avoid new credit lines or job changes until after closing. Respond quickly to lender requests.
- Wire fraud: Confirm wire instructions by phone with your escrow officer using a known number. Do not rely on email-only instructions.
Your Cupertino buyer checklist
Have these ready to keep your escrow on track:
- Valid photo ID
- Proof of funds for your earnest money and down payment
- Mortgage pre-approval and updated loan documents
- Homeowner’s insurance binder before funding
- Contact information for your escrow officer, title rep, and lender
- HOA contact and dues statement if buying in an HOA
- Copies of any contingency removals or repair agreements
Should you waive contingencies?
Shorter contingency timelines or waivers can strengthen an offer in Cupertino, but they transfer more risk to you. If you waive inspection, you accept potential repair costs. If you waive loan or appraisal, you may need to bring extra cash or risk default if financing fails. Discuss the options with your agent and lender so you understand the tradeoffs.
What to expect on closing day
On closing day, your lender funds the loan, escrow verifies conditions, and the deed is recorded with the county recorder. Once recording is confirmed, escrow disburses funds and you get keys. Keep your signed Closing Disclosure and settlement statement for your records, along with your title policy information.
Ready to navigate escrow with confidence in Cupertino? Get a clear plan, strong negotiation, and proactive coordination from The Samit Shah Team. We help you close on time with fewer surprises.
FAQs
What is escrow for Cupertino homebuyers?
- Escrow is a neutral third party that holds funds and documents and follows written instructions until all contract conditions are met, then coordinates recording and disbursement.
How long does escrow take in Cupertino?
- Many Bay Area escrows run 30 to 45 days, though Cupertino deals often shorten timelines to around 21 days in competitive situations if both sides agree.
Who holds my earnest money during escrow?
- The escrow or title company holds your deposit in a trust account and releases it only as instructed in the purchase contract.
When do I get my Closing Disclosure if I have a loan?
- If you are financing, you receive the Closing Disclosure no later than 3 business days before closing, giving you time to review final loan terms and costs.
What happens if the appraisal is lower than my offer?
- You can negotiate with the seller, bring additional cash to cover the gap, or use contract rights to cancel if you kept the appraisal or loan contingency.
Will I get a supplemental property tax bill after buying?
- You may. A change in ownership can trigger a supplemental assessment, which often results in a separate tax bill after closing.
Can I close if there are HOA documents outstanding?
- Typically no. Escrow needs required HOA documents and estoppel information to satisfy lender and contractual requirements before closing.
