How Escrow Works In Beverly Hills

Buying or selling in Beverly Hills and hearing the word “escrow” at every turn? You are not alone. Escrow is the engine that quietly carries your deal from accepted offer to recorded deed. When you understand how it works, you can move faster, protect your funds, and avoid last‑minute surprises. This guide gives you a clear, step‑by‑step overview tailored to Beverly Hills luxury transactions so you know what to expect and how to prepare. Let’s dive in.

Escrow in California: the simple truth

Escrow is a neutral third party that holds funds and documents until all contract conditions are met and title can transfer. The escrow officer follows written instructions from the buyer, seller, and lender, then disburses money only when the deal is ready to close. Title examination and title insurance run in parallel, often with an affiliated title company, but they are legally separate from escrow.

In California, escrow companies are regulated and must follow state rules, anti‑money‑laundering requirements, and Los Angeles County recording standards. Local custom matters in Beverly Hills. Parties often negotiate who selects the escrow company in the purchase agreement.

Who does what in your escrow

• Buyer and seller: the principals who sign the contract and set the terms.
• Escrow holder or officer: receives funds and documents, prepares settlement statements, coordinates payoffs, and manages recording and disbursement at closing.
• Title company and examiner: performs the title search, clears issues, and issues owner’s and lender’s title insurance.
• Lender: provides loan conditions, issues closing documents, and wires loan funds.
• Real estate brokers or attorneys: guide negotiations and review documents.
• Specialists common in luxury deals: wealth managers, tax advisers, qualified intermediaries for 1031 exchanges, and concierge service providers.

Beverly Hills escrow timeline

Step‑by‑step from offer to keys

1. Contract is executed and escrow is opened.
2. Buyer delivers earnest money (the deposit) to escrow.
3. Escrow orders the title search, requests HOA documents if applicable, and obtains payoff statements for any existing loans.
4. Buyer completes inspections and reviews disclosures. Lender conditions begin if the purchase is financed.
5. Contingencies are removed: inspections, appraisal, financing, title, and HOA if applicable.
6. Final walk‑through, then signing of closing documents.
7. Lender funds the loan or buyer wires the balance for cash deals. Escrow records the deed with Los Angeles County.
8. Escrow disburses funds, pays off loans and fees, and distributes net proceeds to the seller.

How long it takes

• Cash closings: often 7 to 21 days when documentation and funds are ready and title is clear. Luxury properties can still take longer due to specialized inspections, HOA timing, or seller logistics.
• Financed transactions: typically 30 to 60 days from acceptance to recording. Underwriting, appraisal scheduling, and payoff coordination add time.
• 1031 exchanges, probate, estate sales, or trust transactions: often extend escrow by weeks or months depending on the intermediary and court processes.

Key timing milestones you should plan for

• Opening escrow and delivering deposit: commonly within 2 to 3 business days of acceptance. Follow the exact contract language.
• Due diligence and contingencies: negotiated in the contract. Timelines may be shorter for competitive offers or longer for complex estates and hillside properties.
• Appraisal: often 7 to 14 days after the order is placed. Unique or high‑value homes can take longer.
• Funding and recording: lenders must clear conditions before funding. Consumer loan closings follow TRID and Closing Disclosure timing rules.

Title, disclosures, and contingencies you will review

California requires the seller to provide the Transfer Disclosure Statement and other material disclosures. You should expect a Natural Hazard Disclosure that covers earthquake faults, seismic hazards, and fire or flood zones common in Los Angeles County. Hillside homes in and around Beverly Hills may involve geological or soils reports, and condos or planned developments require HOA and CC&R documents for review.

A title search will identify liens, easements, restrictive covenants, and the ownership chain. Title insurance is customary. An owner’s policy protects you against unknown defects that exist at closing. A lender’s policy protects the lender. Who pays for the owner’s policy can be a local custom or a negotiated term, so confirm what your contract says.

Contingencies are your safety valves. Typical ones include inspection, appraisal, financing, title, HOA review for condos, and sometimes a sale contingency if you need to close on another property first. High‑end properties often receive deeper technical reviews before you remove contingencies.

Luxury‑specific inspections worth considering

• Structural or engineer evaluations for hillside or bespoke architecture.
• Mechanical, electrical, and plumbing diagnostics for complex systems.
• Smart home and security system testing and documentation.
• Pool, spa, and water feature inspections and permits.
• Historic status, preservation constraints, and permit compliance.
• Inventories for art, fixtures, and built‑ins when personal property is part of the deal.

Funds, wires, and fee clarity

How your money is held

Escrow holds your deposit, your purchase funds, and your lender’s funds in insured trust accounts. The escrow officer coordinates payoff demands, deed recording, and reconveyance of liens so you receive clear title at closing.

Wire security you can enforce

Wire fraud is a real risk in high‑value closings. Protect yourself with these steps:

• Confirm wiring instructions by calling a known, verified escrow phone number. Do not use a phone number from an email link.
• Expect dual verification of the bank account and beneficiary before you send money.
• Request printed and countersigned wiring instructions as part of your package.
• Use secure portals for statements and instructions whenever available.
• Allow time for funds to clear. Escrow may hold incoming wires for several days before disbursement.

What fees to expect

Escrow fees are administrative charges and are often split by local custom, but the allocation is negotiable. Title insurance premiums for owner’s and lender’s policies are typical. You will also see recording fees, transfer taxes, HOA document fees for condos, and prorated property taxes on the closing statement. Confirm whether the City of Beverly Hills or Los Angeles County has any specific transfer tax or documentary requirements for your deal.

International buyers: close with confidence

If you are buying from abroad, start your escrow planning early. Prepare proof of funds and understand your bank’s currency transfer timelines. International wires can take several days and are subject to banking checks, so build that into your schedule.

Escrow will require government identification. Powers of Attorney may need notarization and sometimes an apostille. Many escrow offices can support remote signings through online or consular notarizations. Verify what is allowed and what your chosen escrow company supports at the time of closing.

If the seller is a foreign person, FIRPTA may require tax withholding at closing unless an exemption applies. Buyers and sellers should consult tax counsel for guidance. International buyers should also discuss U.S. tax reporting, potential capital gains implications, and the need for an ITIN with a qualified adviser.

Founder‑led oversight: why it helps

In Beverly Hills luxury transactions, founder‑led oversight can add real protection. When senior leadership stays engaged, complex title exceptions, payoff discrepancies, and cross‑border timing issues can be escalated and resolved quickly. You also benefit from established relationships with top underwriters, local attorneys, and municipal offices when a rare issue surfaces.

Founder‑led teams often set rigorous internal checklists for wires, funds handling, and documentation of high‑value fixtures. Many also offer concierge coordination for notaries, translators, and international document delivery. This does not replace legal or tax advice, but it can streamline the path to a clean closing.

Local Beverly Hills checklist

Use this short list to keep your escrow on track:

• Confirm whether Beverly Hills or Los Angeles County imposes a local documentary transfer tax for your property type and who pays it.
• Check Los Angeles County Registrar and Recorder requirements for recording and typical turnaround times.
• Verify local custom for payment of the owner’s title policy and escrow fee, then align with your contract terms.
• Ask whether remote online notarization is supported for your signing.
• For financed deals, coordinate TRID timing with your lender so your Closing Disclosure and funding dates support your target close.
• For international matters, confirm identification and apostille requirements early and plan wire timing with your bank.
• For FIRPTA scenarios, confirm withholding responsibilities with tax counsel and make sure escrow is instructed properly.

Questions to ask before you open escrow

Bring these questions to your first escrow call, especially for international or high‑value purchases:

• Who will be my escrow officer and primary contact, and what is the verified in‑office phone number?
• Where will my earnest money be held, and how long after deposit will funds clear?
• What is your procedure for issuing and verifying wire instructions?
• Do you support remote online notarization or international signing? What are the exact requirements for POA or apostille?
• What is the typical Beverly Hills timeline for this property type and financing plan?
• Who typically pays for the owner’s title policy and escrow fee in this market, and how will our contract specify it?
• How do you handle 1031 exchanges, probate, trusts, or FIRPTA withholding if needed?
• Can you provide references for recent Beverly Hills luxury closings and a sample closing statement?

The takeaway

Escrow is designed to protect you while your Beverly Hills purchase or sale moves toward a clean transfer of title. When you know the steps, set realistic timelines, and enforce wire security, you can close confidently. Pair that with seasoned, founder‑led coordination and you will feel the difference in speed, accuracy, and discretion.

Ready to map your escrow timeline or pressure‑test a deal? Book an Appointment with Derrick Smith for a confidential consultation.

FAQs

What is escrow in a Beverly Hills home purchase?

• Escrow is a neutral third party that holds funds and documents, follows written instructions, and releases money only when closing conditions are met and title can transfer.

How long does escrow usually take in Beverly Hills?

• Cash purchases can close in 7 to 21 days with clear title and ready funds, while financed deals typically take 30 to 60 days depending on underwriting and appraisal.

Who are the key players during escrow?

• You will work with an escrow officer, title company, lender if financed, your real estate agent or attorney, and sometimes specialists like tax advisers and 1031 intermediaries.

What disclosures should I expect to review?

• California seller disclosures, Natural Hazard Disclosure reports, HOA documents for condos, and often geological or soils reports for hillside properties.

How are funds and wire transfers handled safely?

• Escrow holds funds in trust accounts, and you should verify wire instructions by phone to a known number, use secure portals, and allow time for funds to clear before disbursement.

Who pays for title insurance and escrow fees?

• Allocation is negotiable and guided by local custom. Confirm who pays for the owner’s policy and escrow fee in your contract for the specific transaction.

What should international buyers plan for in escrow?

• Prepare proof of funds and wire timing, confirm notarization needs or remote signing options, and coordinate with tax counsel on FIRPTA and U.S. reporting requirements.