Accepted an offer on a Berkeley home and wondering what happens next? Escrow can feel like a black box, especially with California disclosures and local rules layered in. In this guide, you’ll get a clear timeline, step-by-step milestones, and practical East Bay tips so you can move from offer to recording with confidence. Let’s dive in.
What escrow is and why it matters
Escrow is a neutral third party that holds funds and documents until both sides meet the terms of your purchase contract. After acceptance of the California Residential Purchase Agreement, the escrow and title team open a file, issue instructions, coordinate title work, and track deadlines. They collect your deposit, balance of funds, and loan proceeds, then handle recording with the Alameda County Recorder. When the deed records, ownership transfers and keys typically release.
Berkeley escrow timeline at a glance
Escrow lengths vary by financing and negotiation. In Berkeley and the East Bay, financed purchases commonly run 30 to 45 days. Cash closings can be 7 to 14 days if both parties agree. Inspection periods are often 7 to 17 days, and loan contingency windows typically range from 17 to 30 days.
Sample 30-day escrow schedule
- Day 0: Offer accepted. Escrow opens and issues instructions.
- Days 1–3: You deliver the earnest money deposit per contract.
- Days 3–10: You order inspections; your lender orders the appraisal and starts underwriting; seller provides disclosures and any HOA documents.
- Days 7–14: Inspections complete; you negotiate repairs or credits and decide on inspection contingency.
- Days 10–17: Appraisal returns; lender continues underwriting; you work through remaining contingencies.
- Days 17–24: Lender issues loan commitment when conditions are satisfied.
- Days 25–29: Escrow prepares final figures; you wire funds for closing per secure instructions.
- Days 29–30: Lender funds, deed records with Alameda County, and keys release after recording.
Step-by-step: what happens when
1) Open escrow and deposit funds
Acceptance of the C.A.R. purchase agreement triggers opening escrow with a neutral escrow/title company. You then deliver your earnest money deposit, commonly within 1 to 3 business days per the contract. Escrow issues instructions, opens your file, and coordinates with title, your lender, and the seller.
2) Disclosures and title review
You receive California-required disclosures, which include the Transfer Disclosure Statement, Natural Hazard Disclosure, lead-based paint notices for homes built before 1978, and other mandatory state notices. In Berkeley, expect local disclosures related to rent stabilization or tenant occupancy when applicable. The title company provides a preliminary title report for you to review for easements, liens, or exceptions.
3) Inspections and due diligence
During the inspection contingency period, you order a general home inspection and common specialty reports such as termite, roof, sewer scope, HVAC, and chimney. For hillside lots or older foundations, your agent may recommend geotechnical or structural evaluations. You use these results to negotiate repairs or credits, or to decide whether to proceed.
4) Financing and appraisal
Your lender orders the appraisal early in escrow. The appraisal informs the maximum loan amount and can create a gap if it comes in below the purchase price. Underwriting collects documents and issues conditions until you reach clear to close.
5) Final figures, funding, and recording
Escrow prepares your closing disclosure and final settlement figures. You wire remaining funds and the lender funds your loan. The deed then records with the Alameda County Recorder, which marks the official transfer of ownership and typically triggers key release.
6) Post-closing wrap
Escrow distributes funds to the seller and lienholders, issues the final title policy, and provides your closing packet. Property taxes are prorated as of the closing date. Keep your recorded deed and title policy for your records.
Local Berkeley factors to watch
Seismic and geotechnical risk
Berkeley sits near the Hayward Fault, so earthquake-related disclosures are standard. Expect your Natural Hazard Disclosure to address fault and seismic zones. For hillside or older properties, a structural or geotechnical inspection can help you evaluate risk.
Permits and older homes
Many Berkeley homes are older, and some may have additions or conversions without permits. Unpermitted work can affect financing or insurance and may require remediation. Ask your agent to coordinate a permit history check with the City of Berkeley before your contingency deadlines.
Tenant-occupied properties
Berkeley has rent stabilization and just-cause protections. If you are purchasing a tenant-occupied property, the seller must provide tenancy-related disclosures. Build extra time in escrow to coordinate access, notices, and any required steps under local rules.
Local transfer taxes and recording
Recording occurs with the Alameda County Recorder. County and city documentary transfer taxes or local fees may apply in Berkeley. Ask your escrow officer to confirm the current fee schedule early so your closing figures are accurate.
Hillside and flood considerations
Some neighborhoods carry landslide or soil stability risk, while others at lower elevations may have stormwater or flood concerns. Review hazard disclosures and consider drainage or geotechnical evaluations when warranted by location and property condition.
Deposits, contingencies, and inspections
Your earnest money shows good faith and is held in escrow, then applied to your purchase at closing. Amounts vary, but 1 to 3 percent of the price is common, with higher deposits sometimes used in competitive situations. Deposit timing is set by contract and typically due within 1 to 3 business days after acceptance.
- Inspection contingency: Protects your right to investigate and negotiate. Timelines are negotiated, commonly 7 to 17 days.
- Loan contingency: Allows you to cancel if you cannot obtain financing within the agreed period, often 17 to 30 days.
- Appraisal contingency: Protects you if the appraisal comes in below the price.
- Title contingency: Lets you object to issues found in the preliminary title report.
- HOA contingency: Applies if you are buying in a common-interest community.
Common Berkeley inspections include general home, termite, sewer scope, roof, chimney, HVAC, and electrical. For older or hillside properties, consider geotechnical or structural specialists.
Financing and appraisal in the East Bay
In competitive markets, appraisal gaps can happen. If the appraisal is low, you may renegotiate, increase your down payment, or use an appraisal-gap strategy if it fits your plan. Loan timelines vary by product, and jumbo, FHA, or VA loans may require additional time and documents. Your lender issues clear to close once all conditions are met.
How your agent keeps escrow on track
A proactive agent sets the pace from day one. They open escrow immediately, confirm your deposit is received, and organize disclosures and inspections early in the contingency window. They coordinate with your lender on the appraisal, monitor title issues, and keep every deadline visible so nothing slips.
Behind the scenes, your agent tracks underwriting, follows up on conditions, and solves problems quickly. For tenant-occupied properties, they help coordinate access and timing under local requirements. They also confirm recording and possession instructions so move-in is simple and on schedule.
Common pitfalls and how to avoid them
- Appraisal comes in low: Discuss appraisal-gap strategies or renegotiate based on data.
- Unpermitted work emerges late: Run a permit history check early and consider an escrow holdback if needed.
- Tenant timing conflicts: Consult local rules early and plan notices and access with your agent and escrow.
- Missed contingency deadlines: Keep a written calendar of expiration dates and confirm all removal forms.
- Lender delays: Provide documents quickly and choose a lender experienced with Alameda County closings.
- Wire fraud risk: Verify wiring instructions by phone with your escrow officer before sending funds.
Buyer checklist before closing
- Secure a homeowner’s insurance binder and provide it to your lender.
- Confirm final funds and wire several days before closing per escrow instructions.
- Schedule your final walkthrough 1 to 3 days before recording.
- Confirm possession terms and key release timing in writing.
- Plan utility transfers and your change-of-address timeline.
Final walkthrough, funding, and recording
Your final walkthrough checks that the home’s condition matches the contract and that agreed repairs are complete. Once your lender gives clear to close, funding and recording usually follow within a few days. Recording with the Alameda County Recorder marks the legal transfer. Keys typically release after recording per your possession terms.
Buying in Berkeley involves the same core escrow steps as anywhere in California, plus a few local nuances. With a clear plan, early inspections, and steady communication between you, your agent, lender, and escrow, you can close on time and with confidence. If you want a smooth path from offer to keys and a responsive guide at every step, connect with Darlene Perry. Get your free home valuation if you are also planning a sale.
FAQs
How long does escrow take for Berkeley homes?
- For financed purchases, plan on 30 to 45 days; cash deals can be 7 to 14 days if negotiated and documents are ready.
What is the earnest money deposit in Berkeley escrow?
- Deposits vary, but 1 to 3 percent of the purchase price is common, with timing usually within 1 to 3 business days after acceptance.
Which inspections are most common for Berkeley properties?
- Typical inspections include general home, termite, sewer scope, roof, chimney, HVAC, and electrical, with geotechnical or structural reviews for hillsides or older foundations.
How do tenant-occupied Berkeley properties affect escrow?
- Expect tenancy disclosures, coordinated access, and timing aligned with rent stabilization and just-cause rules; build extra time for notices and documentation.
When do I get keys after closing in Alameda County?
- Keys usually release after the deed records with the Alameda County Recorder, based on the possession terms in your contract.
