Escrow in Marin: What Buyers Should Expect

Wondering what really happens after a seller says yes to your offer in Marin? You are not alone. Escrow is where your deposit, inspections, and loan all come together, and it is normal to have questions about timing and who does what. In this guide, you will learn how escrow works in California, what to expect with deposits and contingencies, and the Marin‑specific factors that can affect your closing. Let’s dive in.

Escrow basics in California

Escrow is a neutral third party that holds funds and documents and coordinates the closing once the terms of your purchase agreement are met. It protects you, the seller, and your lender by making sure everything matches the contract before title transfers. Escrow is state regulated, and the company follows the written instructions in your signed purchase agreement.

Escrow is different from title insurance. Escrow administers the closing process. Title professionals research the property’s ownership history, identify liens or exceptions, and issue title insurance policies that protect you and your lender from covered title defects. Many companies offer both services through related entities, but their roles are separate.

Your purchase agreement, commonly the California Association of Realtors Residential Purchase Agreement, controls the escrow instructions, deposit amounts and deadlines, contingency periods, and closing date. Escrow will follow those instructions precisely.

Earnest money deposits in Marin

Your earnest money shows good faith and becomes part of your down payment and closing funds if you close. Buyers typically deliver the initial deposit to escrow shortly after acceptance, often within 24 to 72 hours, but the exact deadline is what you and the seller negotiate in the contract.

There is no statewide legal cap that limits deposits to 3 percent. In many California markets, initial deposits commonly range from 1 to 3 percent of the purchase price, and Marin’s higher‑priced, competitive submarkets sometimes see larger or staged deposits. Some contracts use a smaller initial deposit followed by additional funds later in escrow. Practices vary by neighborhood, price point, and whether the offer is cash or financed.

Deposits are credited to you at closing. If one party does not meet the contract terms, the deposit release or return depends on the facts and the agreement. Your agent and escrow can explain the steps if a cancellation or dispute comes up.

Common contingency windows

Contingencies are your contract safety valves and the timelines are negotiable. Local practice in Marin commonly follows these ranges:

• Inspection contingency: often 7 to 17 days for general and structural inspections. Pest inspections are often scheduled in the same window.
• Loan contingency: commonly 17 to 21 days, and sometimes longer, to allow for application, underwriting, and lender conditions.
• Appraisal contingency: typically aligned with the loan timeline. The lender orders the appraisal once your file is in process.
• Title, disclosures, and HOA review: you typically have several days, as negotiated, to review title reports, seller disclosures, and any association documents.

Financed escrows in Marin often run 30 to 45 days, though 21 to 30 days can work with a fast lender and clean file. Cash purchases can close faster, often in 7 to 14 days, limited mostly by title work and recording.

Typical Marin escrow timeline

• Day 0: Offer accepted and escrow opens. You sign the purchase agreement and confirm the deposit timing.
• Days 1–3: You deliver the initial deposit to escrow. Escrow orders the title report. Your lender receives the file and you submit your loan application if financing.
• Days 3–7: You schedule and complete inspections. Reports begin to arrive and you discuss any repair requests or credits.
• Days 7–17: You act on your inspection contingency per the contract. Your lender orders the appraisal and continues underwriting.
• Days 17–30+: Loan contingency clears. Title exceptions are addressed. HOA or municipal document reviews wrap up. You receive your closing disclosure and final figures.
• Final days: You complete your final walkthrough, sign closing documents, and your lender wires funds. Escrow records the deed and disburses funds.
• Day of record: Ownership transfers. Escrow provides your final settlement statement and recording confirmation.

Actual timing depends on your negotiated deadlines, lender speed, whether you are paying cash, and any issues that arise.

Who does what in escrow

• Escrow holder: Opens the file, holds your deposit, tracks deadlines, prepares settlement statements, coordinates signing, and handles recording and disbursement.
• Title company: Performs the title search, identifies liens or easements, works to clear issues, and issues title insurance for you and your lender.
• Lender: Processes your loan, orders the appraisal, sets conditions for funding, and wires loan proceeds at closing.
• Buyer’s agent: Coordinates inspections, helps you review disclosures and title, and advises on contingency removals and negotiations.
• Seller and listing agent: Provide disclosures and documents, complete any agreed repairs or credits, and sign closing paperwork.
• You as the buyer: Schedule inspections, provide lender documents quickly, review disclosures and title, and sign loan and closing documents.
• Local agencies and third parties: City or county planning and building, health departments, and utility districts may provide records or approvals that affect timing.

Marin factors that affect timing

Marin properties often require extra due diligence. Plan for these local variables:

• Older homes: Many homes need focused structural, pest, and roof inspections, which can lead to repair negotiations.
• Hillside and soils: Parts of Tiburon, Mill Valley, and Sausalito sit on slopes. If there are visible concerns, you may consider soils or drainage consultants, which can add time.
• Coastal and flood exposure: Properties near the bay in Tiburon, Sausalito, and parts of Mill Valley may be in flood zones. Insurance and lender requirements can affect closing.
• Earthquake and seismic retrofit: Older foundations or unreinforced masonry may prompt you to plan for retrofit costs and to evaluate earthquake insurance.
• Septic versus sewer: Some parcels use septic systems. County health reviews or permits may be needed.
• Permitting and special districts: Marin has many cities and districts. Confirm permit histories in Tiburon, Mill Valley, Larkspur, Sausalito, or with Marin County Planning and Building to avoid surprises.
• Homeowner associations: HOA document delivery and review can take time, especially for demand statements and rules reviews.
• Insurance nuances: Coastal exposure can affect availability and pricing of coverage. Lenders require proof of hazard insurance before funding.

Buyer checklist for a smooth close

Immediately after acceptance

• Confirm your deposit amount and the exact delivery deadline in the contract.
• Start your loan application and send required documents to your lender right away.
• Make sure escrow, title, your lender, and both agents have correct contact details.

During the contingency period

• Schedule general and pest inspections within the first few days.
• If the property has hillside or coastal exposure, consider soils, drainage, or related specialists early.
• Review seller disclosures promptly and request permit histories for major work.

Before removing contingencies

• Confirm that your lender has ordered the appraisal and is advancing underwriting.
• Review the title report, liens, and easements. Ask questions early.
• Align on any repair credits or agreements before you sign contingency removals.

Final week

• Bind your homeowner insurance and confirm your lender has cleared all conditions.
• Complete your final walkthrough 24 to 48 hours before closing.
• Verify wire instructions directly with escrow by phone to avoid wire‑fraud scams.

After closing

• Expect a supplemental property tax notice due to the change in ownership.
• Store your deed, closing statement, and title policy in a safe place.

Avoid common roadblocks

• Underwriting and appraisal delays for high‑value properties can lengthen loan timelines. Share documents fast and keep communication tight with your lender.
• Unrecorded permits or code issues can surface during disclosure or title review. Address them early to protect your timeline.
• Inspection findings sometimes lead to repair or credit disagreements. Stay focused on solutions and the total value of the deal.
• Title exceptions, easements, or historic restrictions may require extra work. Give your title officer time to resolve them.
• Insurance binding problems for coastal or flood‑zone homes can delay funding. Begin those conversations early.
• HOA document delays can slow reviews. Request complete HOA packages right away.

Write a strong, realistic offer

In competitive Marin submarkets, sellers may prefer offers with shorter contingency windows, higher or staged deposits, or an as‑is posture. Balance speed with protection. Aim for timelines that let you complete inspections and secure loan approval without undue risk. A responsive team and early lender documentation can help you compete without sacrificing key safeguards.

Ready to open escrow with confidence?

You deserve a smooth, well‑managed closing. If you want clear timelines, disciplined coordination, and local insight across Tiburon, Mill Valley, Larkspur, Kentfield, and Sausalito, reach out to Maile Mock. Let’s connect and map your next steps.

FAQs

What is escrow in California real estate?

• Escrow is a neutral third party that holds funds and documents and coordinates closing so contract conditions are met before title transfers.

How much earnest money do Marin buyers typically deposit?

• Many buyers deposit 1 to 3 percent of the purchase price, though amounts vary by market conditions, property price, and offer strength.

How fast do I need to deliver my deposit after acceptance?

• Deposits are commonly due within 24 to 72 hours of acceptance, but your exact deadline is whatever your signed purchase agreement specifies.

What are common contingency timelines for Marin purchases?

• Inspections often run 7 to 17 days, loan contingencies about 17 to 21 days or longer, and appraisal timing usually aligns with the loan window.

How long does escrow usually take in Marin with financing?

• Financed escrows commonly take 30 to 45 days, while faster 21 to 30 day closings are possible with a responsive lender and clean file.

Can a cash purchase close faster in Marin County?

• Yes. Cash escrows often close in 7 to 14 days, limited mainly by title work, HOA or municipal documents, and recording schedules.

What happens to my deposit if the deal falls through?

• If the cancellation is within your contract protections, you may be entitled to a return; outside protections, the seller may claim rights to the deposit per the agreement.

What local issues can extend escrow in Tiburon, Mill Valley, or Sausalito?

• Hillside soils, coastal or flood exposure, permit history checks, HOA documents, and insurance binding can add time to due diligence and closing.