Reviewed by: Brandon Brown

If you’re selling a home or buying one, you’ve probably heard about escrow. It’s an important part of the real estate transaction process, but it can feel like a mysterious, drawn-out step. Whether you’re selling traditionally or exploring quicker sales methods like micro flipping, understanding escrow is essential to managing the process confidently. So, how long does escrow take, and what can you do to make it move along faster? In this guide, we’ll explain what escrow is, why it’s important, and how services like FlipSplit can help quicken the process so you’re not stuck waiting longer than necessary. Let’s go!

What is Escrow?

In real estate, escrow is a neutral middleman in the home-buying process, ensuring that everything goes smoothly and all the conditions of a real estate purchase agreement are met before the sale is final. It’s a process and account that protects both buyers and sellers, holding onto money or essential documents until things like inspections, appraisals, or loan approvals are cleared. You can think of it as a safety net for your transaction. When you open escrow, an escrow officer or escrow agent is assigned to oversee the process. They manage important tasks, including:

• Collecting the earnest money deposit from the buyer. This is the buyer’s upfront payment to show they’re serious about buying a home.
• Monitoring the completion of inspections, appraisals, and loan documents.
• Ensuring that all terms of the contract are met before closing escrow.

Escrow plays a crucial role in protecting everyone involved, but it’s also one of the main reasons transactions take time.

Did you Know?

The term “escrow” comes from the Old French word “escroe,” which refers to a scrap of paper or a scroll of parchment held by a third party until a transaction is completed. In medieval times, this ensured trust between parties before banks or formal contracts existed. Today, that same principle of trust is the foundation of the modern escrow process, safeguarding funds and documents during real estate deals.

Traditional Escrow Process Timeline

A traditional escrow period typically lasts between 30 and 60 days, but it can change depending on the complexity of the sale. Here’s an overview of what happens during the escrow process:

1. Opening Escrow – Once the buyer and seller sign the purchase agreement, escrow is officially opened.
2. Contingency Period – The buyer works through contingencies or conditions like inspections, appraisals, and securing financing.
3. Document Preparation – The necessary documents are prepared, such as the title paperwork and closing disclosure –– a five-page document outlining the final costs, terms, and fees of a mortgage loan.
4. Closing Day – On the scheduled closing date, all parties sign the closing documents, and funds are disbursed.

Factors That Impact Escrow Duration and Causes Delays

While the timeline above is typical, several factors can speed up or slow down the process. In some cases, sellers worry about how often home sales fall through due to contingencies or buyer financing problems, which can delay or even cancel the deal entirely. Here are the most common factors to watch out for:

Financing Approval

If the buyer is relying on financing, their lender must approve the mortgage before closing. This process involves verifying income, credit, and other loan documents, which can take time. Delays in submitting or verifying loan documents can extend the escrow timeline. Common reasons for delays may include changes in the buyer’s financial situation, like job loss or additional debt. It can also be due to slow processing times during busy periods, especially the peak home buying season.

Inspections and Repairs

Home inspections often uncover issues that need to be addressed before closing. Issues like a failed termite inspection, outdated wiring, or roof damage can lead to repair negotiations and additional inspections, which can stretch out the escrow period and affect your net proceeds.

Paperwork Delays

Escrow involves multiple parties, like buyers, sellers, lenders, and escrow officers, and each party needs to provide specific necessary documents. So, if there are missing, incorrect, or late documents, they can stall the process. Making sure that all required information is submitted promptly is critical to staying on schedule.

Benefits of a Faster Escrow Process

Speeding up escrow isn’t just about saving time. It can also provide other benefits for sellers. Here’s why a faster process is worth pursuing:

Reduced Stress and Uncertainty

Waiting for escrow to close can feel like watching paint dry, especially when delays arise.  They can be emotionally draining, with both parties often anxious about potential delays or deal cancellations. A faster process means less time worrying about contingencies and more time focusing on your next move.

Quicker Access to Funds

For sellers, a shorter escrow process means receiving your payment sooner. This is especially beneficial if you’re using your net proceeds for another real estate transaction or to cover immediate expenses.

How FlipSplit Simplifies Escrow for Sellers

FlipSplit’s mission is to simplify the selling process from start to finish, including escrow. With our transparent and streamlined approach, you won’t have to worry about long waits or unexpected delays.

• Quick Property Assessments – Our quick property assessments mean you can skip the drawn-out inspection and appraisal process. Any necessary repairs are handled in-house, removing the delays that often pop up when coordinating external contractors.
• Simplified Paperwork – We use efficient systems to collect and manage necessary documents, reducing the back-and-forth that slows things down.
• Efficient Closing – From signing the escrow instructions to disbursing funds, we work closely with escrow companies to ensure a smooth and speedy process.
• No Hidden Fees – Unlike traditional sales that often come with surprise escrow fees or repair costs, FlipSplit provides full transparency and covers repairs at no upfront cost to you.

 Make Escrow Simple with FlipSplit

The question of “how long does escrow take?” doesn’t have to leave you in suspense. While traditional escrows can stretch from 30 to 60 days, or even longer, FlipSplit offers a faster, stress-free alternative. With streamlined processes, simplified paperwork, and a commitment to transparency, we’re here to help you close your sale and access your funds quickly. With our deep knowledge of the Southern California real estate housing market, we’re able to offer expert guidance and insights to help you make informed decisions as a home seller. Ready to skip the waiting game? Contact FlipSplit today and experience the difference of an expedited escrow process.  

Reviewed by: Brandon Brown

As a long-time Asset Manager, Investor, Real Estate Agent, and Broker/Owner of BayBrook Realty in Orange County, Brandon Brown is one of FlipSplit’s lead Real Estate experts. Having worked on over 2,000+ real estate transactions, Brandon brings a depth of knowledge that ensures clients are appropriately treated with honesty and integrity. His insights and advice have been published in numerous blogs beyond FlipSplit, and he keeps a close eye on market trends and statistics, which are updated weekly on his social media pages. Outside work, you can find him participating and serving at church, cycling, mountain biking, surfing around Orange County and beyond, and enjoying time with his wife and two daughters.

Sources:

1. Banton, C. (2024, October 17). How Escrow protects parties in financial transactions. Investopedia. https://www.investopedia.com/terms/e/escrow.asp
2. Escrow | Etymology of escrow by etymonline. Etymonline. https://www.etymonline.com/word/escrow
3. Beck, R. H. (2022, December 22). Mortgage escrow account pros and cons. Bankrate. https://www.bankrate.com/real-estate/mortgage-escrow-pros-cons/