What Happens After Your Offer Is Accepted in California?
After your offer is accepted in California, you open escrow and enter a 30 to 45 day process with multiple overlapping deadlines. All contingencies default to 17 calendar days under the California Residential Purchase Agreement, though buyers often shorten that window in competitive markets. During escrow, you review seller disclosures, conduct your physical inspection, secure homeowners insurance, and support your lender through the appraisal and final loan approval. Once all contingencies are removed in writing, your earnest money deposit is at risk if you cancel. Loan documents are typically signed 2 to 3 days before the close of escrow date, your down payment is wired the day before, and the deed records on the close of escrow date.
By Austin Criss, REALTOR® | RE/MAX TIFFANY | June 16, 2026
Getting your offer accepted is one of the best moments in a home search. Then about 48 hours later, the texts start. “What do I do now?” “When does the inspection happen?” “What is this form they want me to sign?”
I walk my buyers through this the same way every time, because the process has real deadlines with real consequences if you miss them. Once you understand the shape of it, escrow is not complicated. It’s a sequence of steps, and knowing what comes next makes each one easier to handle.
The First 72 Hours: Opening Escrow and Your Deposit
The purchase agreement is signed by all parties and the clock starts. Within the first three business days, two things happen.
Escrow opens. Your agent sends the fully executed contract to the escrow company. The escrow officer assigns a transaction number and begins coordinating with both agents, your lender, and the title company. Escrow also serves as the joint escrow instructions under California law, so the signed purchase agreement is what governs the entire process.
You deliver your earnest money deposit. The California RPA defaults to wire transfer within 3 business days of acceptance. On a $1,000,000 Orange County home, you are typically wiring $10,000 to $30,000 to escrow. That money is held in a trust account and applied toward your down payment at closing. It is not spent. But it is at risk once all contingencies are removed, which is exactly why everything in the next two weeks matters.
During this same window, your lender needs to see your pre-approval documents. Send everything they ask for immediately. Do not wait for them to follow up.
Seller Disclosures: What the Seller Is Required to Tell You
The seller is required to deliver their disclosure package within 7 days of acceptance. This is one of the most important parts of escrow, and one of the parts buyers are most likely to rush through without fully reading.
The core disclosure documents are:
- Transfer Disclosure Statement (TDS): This is where the seller reports everything they know is wrong with the property. Structural issues, water intrusion, roof leaks, neighbor disputes, noise, HOA conflicts, anything material they are aware of. Sellers are required to disclose what they know. They cannot conceal it.
- Seller Property Questionnaire (SPQ): A detailed supplement to the TDS where sellers answer specific questions about the home’s systems, past repairs, any work that was performed, warranties in place, and ongoing maintenance requirements. Read every “yes” answer and the explanation that follows.
- Natural Hazard Disclosure (NHD) Report: A third-party report identifying whether the property falls within mapped state hazard zones, including flood, fire, earthquake fault, and seismic hazard areas.
- Additional disclosures depending on the property: lead-based paint (homes built before 1978), fire hardening disclosure (high fire zone homes built before 2010), solar system information, and HOA documents if the home is in a common interest development.
Two things I always flag for my buyers when we go through disclosures together:
Verify that any work was done with permits. If the SPQ shows the seller replaced the electrical panel, converted the garage, added a room, or did any significant improvement work, the next question is always: was it permitted? Unpermitted work is common in older Cypress and Buena Park homes and it creates real downstream problems. It can affect your homeowners insurance coverage, complicate your appraisal, and become your problem to resolve when you eventually sell. You can check permit history directly through the City of Cypress or Buena Park’s building department. If the seller says work was permitted, ask for the documentation during escrow.
Note ongoing maintenance items and any transferable warranties. Sellers sometimes disclose that a roof was patched but not replaced, that a particular HVAC system requires annual service, or that a home warranty or contractor warranty transfers to the new owner. These details belong in your conversation with your inspector and factor into your long-term cost picture.
After you receive the disclosures, you have 3 days (if delivered in person) or 5 days (if delivered by mail or email) to cancel the contract based on what you see in them. That window is your protection. If something in the disclosures changes the picture for you, that is the moment to act, not after you have already removed your contingencies.
Your Physical Inspection and the Investigation Contingency
The physical investigation of the property is its own contingency under the California RPA, separate from the disclosure review. The default timeline is 17 days, and most buyers complete their inspection within the first 7 to 10 days to leave themselves room to order additional specialist inspections if needed.
Your general home inspector will cover the structure, roof, electrical, plumbing, HVAC, and overall physical condition of the home. Plan to be there. The report will be long and can feel alarming at first read, but context is everything. A 30-year-old home in Cypress or Buena Park will have deferred maintenance items. Not everything in the report is a dealbreaker, and not everything warrants a credit request.
If the inspector flags something specific, such as the roof, a foundation crack, the sewer line, or an electrical panel, you can bring in a specialist for a deeper evaluation during the contingency window. That is normal and smart. You want to know what you are buying before you release your protections.
The Insurance, Appraisal, and Loan Contingencies
Three more contingencies are running in parallel with your inspection, all defaulting to 17 days under the RPA.
Homeowners insurance. This one surprises a lot of first-time buyers. You must bind a homeowners insurance policy before your lender will fund the loan, and the insurance contingency gives you the right to cancel if coverage is not available at an acceptable cost. In most cases it is straightforward. But for older homes, homes with aging roofs, or homes near brush fire hazard zones, getting insurable coverage at a reasonable premium can take longer than expected. Start the insurance conversation in the first few days of escrow, not the week before closing.
Appraisal. Your lender orders the appraisal during the contingency period. The appraiser confirms whether the home’s market value supports the purchase price. If it comes in at or above the price, you proceed normally. If it appraises below the purchase price, your appraisal contingency gives you options: renegotiate the price with the seller, pay the difference in cash, or cancel and recover your deposit.
Loan approval. Your financing contingency gives you the right to cancel if your loan does not come through. Submit every document your lender asks for immediately after acceptance. Delays in your loan file are one of the most common reasons escrows run long or fall apart.
The Contingency Deadline: What 17 Days Actually Means
All of the contingencies above default to 17 calendar days from acceptance under the California Residential Purchase Agreement. By that deadline, you are expected to either formally remove your contingencies in writing using a Contingency Removal form, or cancel the contract.
Here is something worth understanding about that number: 17 days is actually a long window. In competitive Orange County markets, buyers regularly shorten their contingency periods to 7, 10, or 12 days to make their offers more attractive. A seller comparing two similar offers often favors the shorter contingency period because it means less time their home is off the market while the buyer investigates. If you are in a competitive situation, shortening contingencies is often more effective than waiving them entirely, and far less risky.
What you are removing at the contingency deadline matters:
- Physical investigation contingency: you are satisfied with the home’s condition as inspected
- Seller disclosure review contingency: you have reviewed the TDS, SPQ, NHD, and all other documents and are proceeding
- Appraisal contingency: the home appraised at value, or you are accepting any gap
- Loan contingency: your financing is approved and you are committed to the terms
- Insurance contingency: you have confirmed coverage is available at an acceptable rate
Once all contingencies are removed, your earnest money deposit is at risk if you cancel. This is the moment the contract becomes a genuine commitment. If both parties initialed the liquidated damages clause in the RPA (which is standard), the seller can retain your deposit up to 3% of the purchase price if you walk away after contingency removal. That is $30,000 on a $1,000,000 home.
Do not sign the contingency removal form until you are satisfied across every one of those categories. If you have an unresolved question about a permit, if your insurance is not yet bound, if your loan has not been approved, that is not the moment to sign. Use the window to get answers first.
One thing buyers do not always know: if you miss your contingency deadline without removing or canceling, the seller cannot simply keep your deposit. The RPA requires the seller to first deliver a Notice to Buyer to Perform, which gives you at least 2 more days before they can cancel. That is not a reason to miss deadlines, but it is good to understand how the process actually works.
The Final Stretch: Loan Approval, Walk-Through, Signing, and Closing
After contingencies are removed, the remaining work shifts to your lender and the escrow officer. Your job is to stay responsive and not make any major financial changes before closing.
Final loan approval (clear to close). Your underwriter reviews the completed file including the appraisal, title report, and final income documentation. Clear to close means the lender is ready to fund. This typically comes through in the last week before closing. Do not change jobs, open new credit accounts, or make large purchases during this period.
Closing Disclosure review. At least three business days before your loan funds, you receive a Closing Disclosure from your lender showing your exact cash to close and all final loan terms. Compare it carefully to the Loan Estimate you received when you applied. If anything looks different, call your lender immediately.
Final walk-through. The RPA gives you the right to walk through the property up to 5 days before the close of escrow. This is your opportunity to confirm the home is in the same condition it was when you made the offer, that all negotiated repairs were completed, and that any permit documentation you requested has been provided. This is not another inspection. It is a verification that nothing has changed and that the seller has held up their end of the agreement.
Signing loan documents. You sign your final loan paperwork at a title company or escrow office, typically 2 to 3 days before the scheduled close of escrow. Bring a government-issued ID. The signing takes about 45 to 60 minutes. You are signing the deed of trust, the promissory note, and several pages of loan disclosures.
Wiring your down payment. Your remaining down payment and closing costs are wired to escrow the day before closing. Before you send anything, call your escrow officer directly using the number you have had on file since the beginning of escrow and confirm the wiring instructions verbally. Wire fraud targeting real estate transactions is real and it works by intercepting emails with fake wire instructions. Verify by phone every single time, no exceptions.
Recording and key delivery. On the close of escrow date, your lender funds the loan and Orange County records the grant deed. Once the county confirms the recording, ownership transfers. Your agent hands you the keys. You are a homeowner.
Frequently Asked Questions
How long does escrow take in California?
Standard escrow in California takes 30 to 45 days from the date the purchase agreement is signed by all parties. In Orange County, 30-day escrows are common in competitive situations. Longer escrows of 45 to 60 days are sometimes requested when a buyer needs more time to coordinate a move or when the seller needs flexibility on possession.
What are seller disclosures in California and what do they cover?
Sellers in California are required to deliver disclosures within 7 days of acceptance. The core documents are the Transfer Disclosure Statement (TDS), where the seller reports everything they know is wrong with the property, and the Seller Property Questionnaire (SPQ), which covers past repairs, work performed, warranties, permits, and ongoing maintenance. A Natural Hazard Disclosure report is also required. One of the most important things to verify from the SPQ is whether any work done on the home was pulled with permits. Unpermitted work creates problems for insurance, appraisals, and future sales.
What contingencies do buyers have in California?
The California Residential Purchase Agreement includes several contingencies that all default to 17 days after acceptance: physical inspection of the property, review of seller disclosures and documents, loan approval, appraisal, and homeowners insurance availability and cost. Buyers can shorten these in competitive situations. Once all contingencies are formally removed in writing, the earnest money deposit is at risk if the buyer cancels without a valid reason.
What happens to my deposit if I cancel after removing contingencies?
Once all contingencies are removed in writing, your earnest money deposit is at risk if you cancel. If both parties initialed the liquidated damages clause in the purchase agreement, the seller can retain the deposit up to 3% of the purchase price. This is why removing contingencies is a real commitment, not a formality. Do not sign the contingency removal form until you are satisfied with the inspection, disclosures, permits, insurance, appraisal, and loan.
When do I sign loan documents and wire my down payment?
In California, buyers typically sign final loan documents 2 to 3 days before the scheduled close of escrow. The down payment and remaining closing costs are wired to escrow the day before closing. On the close of escrow date, the lender funds the loan and the county records the deed. Once recording is confirmed, ownership transfers and your agent delivers the keys.
The whole process is more manageable than it looks on paper. Every step has a clear purpose, and knowing what comes next means you are prepared for each one rather than reacting to it.
If you are trying to map out your own timeline or want to walk through what escrow looks like on a specific home you are considering, I am happy to go through it with you. Call or text me at 714.600.1176. Always Ask Austin.
About Austin Criss
Austin Criss is a REALTOR® with RE/MAX TIFFANY serving Cypress, Buena Park, and Orange County, California. He specializes in helping first-time buyers and move-up sellers navigate the process from first question to closing. Call or text him at 714.600.1176, or visit austincriss.com.