Buying or selling in Bel Air comes with many moving parts. Escrow keeps those parts organized so your deal closes smoothly, even when the home is a complex hillside estate. If you understand how escrow, contingencies, inspections, and funding work, you reduce risk and move with confidence. This guide walks you through each step, with special notes for Bel Air’s luxury properties. Let’s dive in.
What escrow does in Bel Air
Escrow is a neutral third party that holds funds and documents, follows the written instructions in your purchase contract, and releases everything only when all conditions are met. In California, escrow is commonly handled by an escrow or title company using standard instructions based on your contract. The goal is simple: protect both sides while coordinating title, funding, and recording.
Who is involved
- You and the other party: deliver deposits, disclosures, and required documents.
- Your agents: prepare offers, manage timelines, and coordinate inspections and contingency removals using standard California forms.
- Escrow officer: opens escrow, holds the deposit, tracks deadlines, prepares closing statements, and coordinates signatures and funding.
- Title company: searches and clears title, then issues title insurance policies at closing.
- Lender: orders the appraisal, underwrites the loan, and funds when conditions are satisfied.
- Inspectors and specialists: general home inspector plus hillside experts when needed.
- Attorneys and tax advisors: often involved for complex estates or international transactions.
Timeline: from offer to keys
Escrow in Los Angeles typically runs 30 to 60 days, depending on financing and property complexity. Luxury hillside estates can take longer due to specialty inspections and permit research.
1) Offer accepted and escrow opened
Once your offer is accepted, escrow is opened and assigned an escrow number. You deliver your earnest money deposit per the contract. Funds are held securely by escrow or the listing broker as specified.
2) Seller disclosures delivered
The seller provides required California disclosures, including known issues and natural hazards. Your inspection period often begins upon receipt of these disclosures or the contract date, based on what the agreement states.
3) Inspections and due diligence
You schedule a general home inspection and any specialty reports. You also review the preliminary title report, plus HOA documents if applicable. On hillside properties, expect additional experts for slope, drainage, and permit histories.
4) Contingency resolution
After reviewing inspections and documents, you can proceed, negotiate repairs or credits, or cancel within the contract timelines. If contingencies are not removed by their deadlines, either party may exercise contract remedies.
5) Appraisal and loan processing
If you are financing, your lender orders an appraisal and completes underwriting. Unique luxury estates may present appraisal challenges due to limited comparable sales, which can require additional analysis or cash to bridge any gap.
6) Title clearance and closing prep
The title company clears any title exceptions and prepares the title policies. Escrow drafts closing statements. You secure homeowner’s insurance and finalize your lender’s conditions.
7) Final walkthrough and funding
You complete a final walkthrough to confirm condition. Escrow then coordinates lender funds and your remaining balance to close.
8) Recording and keys
Escrow records the deed and any loan documents with the county. Title insurance policies are issued, funds are disbursed, and you receive keys according to the instructions.
Contingencies explained
Contingencies protect you by allowing time to verify the property and your financing. Common California contingencies include:
- General inspection
- Loan approval
- Appraisal
- Title review
- HOA document review when applicable
- Natural hazard and environmental review
In many California contracts, the inspection period often starts around 17 days and loan contingencies often around 21 days. These are negotiable, and luxury deals may adjust the timing based on property complexity.
Earnest money basics
Your earnest money deposit shows good faith. In many markets, buyers deposit roughly 1 to 3 percent of the purchase price. In Bel Air’s luxury segment, deposits are larger in dollar terms, often from tens of thousands to hundreds of thousands, depending on price and competition.
- Where it sits: Escrow or the listing broker holds the deposit per the contract, typically in a non‑interest bearing account unless otherwise agreed.
- When it is released: The deposit is applied at closing. If you cancel within a valid contingency, you typically receive it back under the contract’s terms. If you default after removing contingencies, the seller may be entitled to the deposit under the agreement.
- Protect it: Confirm who holds the deposit, request wire verification protocols, and keep timelines top of mind.
Inspections for hillside estates
Bel Air’s slopes, architecture, and intricate site work make specialized due diligence essential. In addition to a general home inspection and a termite report, consider the following:
- Geotechnical and soils evaluation for slope stability
- Structural engineer review for foundations and framing
- Grading, retaining wall, and drainage assessment
- Permit and code compliance research for additions and past remodels
- Pool and spa equipment inspection
- Roof and sewer lateral inspections
- Vegetation, erosion control, and wildfire hardening review
- Arborist input for protected trees and removal rules
- Environmental testing as appropriate for age and location
- Easements, access, and private road maintenance confirmations
Early specialist input can surface issues that affect safety, insurability, or long‑term costs. Many buyers choose credits over repairs for complex hillside remediation, since large structural fixes can be intricate and time consuming.
Title, closing costs, and taxes
Title work is central to a clean closing. The title company provides a preliminary title report, clears exceptions, and issues an owner’s policy and, if applicable, a lender’s policy at closing.
Closing costs vary by deal and are negotiable. Expect escrow fees, title premiums, lender charges, recording fees, transfer taxes, and prorations for property taxes and HOA dues when applicable. The City of Los Angeles and Los Angeles County may each impose transfer taxes. Current rates and customary payers can change, so verify with your escrow officer or title representative.
A change in ownership often triggers property tax reassessment in California. Certain exclusions can apply. Speak with a qualified tax advisor for your specific situation.
International buyer essentials
Bel Air attracts global buyers, and cross‑border transactions include extra steps:
- Expect enhanced identity verification and documentation for large cross‑border funds
- Ask escrow about acceptable remote signing, notarization, and power of attorney requirements
- If financing, plan for different underwriting standards and possible higher down payments
- Coordinate with U.S. tax counsel on rules that impact real property transactions, including tax withholding rules that can apply when a foreign party sells
Planning for these items at offer stage can save time later and prevent closing delays.
Wire fraud safety
Real estate wire fraud is a growing risk. Use these safeguards:
- Call your escrow officer using a verified phone number before sending any wire
- Never rely only on email for wiring instructions
- Confirm routing and account numbers by phone on the day you send funds
- Use multi‑factor authentication for email and be suspicious of last‑minute changes
A quick verification call is the simplest way to protect large transfers.
Buyer checklist
- Confirm escrow opening and deposit instructions
- Read all seller disclosures and the preliminary title report
- Order your general inspection and schedule hillside specialists promptly
- Track contingency deadlines and submit repair or credit requests in writing
- Coordinate appraisal and loan conditions early
- Verify wire instructions by phone before sending funds
- Secure geotechnical and structural input before removing key contingencies
- Review HOA, easements, and private road agreements if applicable
- Consult tax counsel if you have cross‑border or complex tax questions
Seller checklist
- Deliver complete disclosures and permit records
- Provide easy access for inspectors and contractors
- Send HOA documents quickly when requested
- Respond to buyer questions and inspection requests to keep timelines on track
- Work with title and escrow to clear any liens shown on the preliminary report
- Keep records of repairs, invoices, and permits ready for review
Final thoughts
A well‑run escrow gives you clarity, protects your deposit, and helps you move through inspections and funding with less stress. In Bel Air, the stakes are high and hillside properties can be intricate. The right guidance, the right specialists, and a proactive plan make all the difference.
Curious how to structure your contingencies or which hillside inspections to prioritize for a specific home? Reach out to Carey More for a confidential conversation tailored to your goals.
FAQs
How long is escrow for Bel Air homes?
- Most escrows in Los Angeles run about 30 to 60 days, with longer timelines possible for luxury hillside estates that need specialty inspections and permit research.
How much earnest money do buyers put down in Bel Air?
- Many markets use 1 to 3 percent of the price as a guide, but in Bel Air the absolute dollar amount is often larger due to price points and competition.
Which inspections are essential for a Bel Air hillside estate?
- In addition to a general and termite inspection, plan for geotechnical and structural reviews, drainage and retaining wall assessments, and permit history verification.
Who pays closing costs and transfer taxes in Los Angeles?
- It is negotiable. City and county transfer taxes apply and practices can vary. Your escrow officer or title representative can confirm current amounts and customary allocations.
What should international buyers expect in escrow?
- Enhanced identity and funds verification, planning for remote notarization, potential differences in financing, and coordination with U.S. tax counsel on cross‑border rules.
How do I protect against wire fraud during closing?
- Call your escrow officer on a verified phone number before sending any wire, avoid relying only on email, and treat any last‑minute changes as suspicious until verified.
