Buying in Manhattan Beach is exciting, but the escrow timeline can feel like a puzzle. You want clarity on what happens when, and how to keep your closing on track. This guide walks you through each step in 90266, highlights local coastal factors, and flags the money moments that matter, so you can move from accepted offer to keys with confidence. Let’s dive in.
What escrow means in California
Escrow is a neutral third party that holds funds and documents and follows written instructions from you and the seller. In California, an escrow company typically manages this process. Escrow coordinates with your lender, title, and both agents until closing.
A title company searches public records and issues a preliminary title report listing liens, easements, and exceptions. Your lender will require a lender’s title policy. Many buyers also purchase an owner’s policy for added protection against title defects.
Closing occurs when funds are in and the deed records with the County Recorder. Keys usually transfer upon recording. Your contract may include contingencies that give you the right to cancel or require action if certain conditions are not met within set timeframes.
Step-by-step escrow timeline in 90266
Every transaction is unique. The following sequence reflects common Southern California practice using California Association of Realtors forms. Your exact dates are set by your contract.
1) Offer accepted and escrow opened
- You and the seller sign the purchase agreement. Escrow is opened on day 0.
- The escrow company is chosen, and the file is set up.
- You deliver your initial deposit to escrow per contract timing, often within 2 to 3 business days.
2) Initial documents and seller disclosures
- The seller provides required disclosures such as the Transfer Disclosure Statement, Natural Hazard Disclosure, and lead-based paint disclosure if applicable.
- Escrow orders the preliminary title report.
- Your agent schedules inspections and coordinates your loan application.
3) Inspection and contingency review period
- You complete your general home inspection, wood-destroying pest inspection, and any needed specialty inspections. Local practice often uses inspection windows in the 7 to 17 day range, but this is negotiable.
- You can request repairs or a credit. The seller can accept, counter, or decline. Negotiations can extend timelines if not resolved quickly.
- If you plan to cancel under your inspection contingency, you must do so within the contingency period specified in your contract.
4) Loan application, appraisal, and underwriting
- Submit your loan package right away after acceptance.
- The lender orders the appraisal. Scheduling and completion often takes 7 to 14 days, though busy periods can take longer.
- The underwriter reviews your file and may request additional documentation. Clearing conditions can take a few days or several weeks depending on complexity.
5) Contingency removals
- You remove contingencies in writing as they are satisfied. That can include inspection, appraisal, title, and loan.
- Sellers often require contingency removals by specific dates to keep the deal moving.
6) Clear to close, walkthrough, funding, and recording
- When underwriting approves your loan, you receive clear to close. Final documents are prepared.
- You must receive the lender’s Closing Disclosure at least 3 business days before closing.
- Schedule your final walkthrough within 24 to 48 hours before closing to confirm condition and agreed repairs.
- Escrow receives your funds, the lender funds the loan, the deed records with the County Recorder, and escrow closes. Keys transfer upon recording or as instructed.
How long escrow takes in Manhattan Beach
- Financed purchases commonly close in about 30 to 45 days. Many close near 30 days in non-peak periods. Appraisal issues or complex underwriting can extend timelines.
- Cash purchases are often faster. Many close in 7 to 21 days depending on readiness, title work, and scheduling.
- Faster or slower closings are possible based on negotiations, contingency lengths, and lender speed.
Local coastal factors to consider
Manhattan Beach is a coastal market, which brings a few added checks.
- Natural hazard and coastal items. Review the Natural Hazard Disclosure and consider flood zones, higher insurance costs, and coastal development factors. Ask your insurer about flood and wind coverage. Consider earthquake insurance, which is separate.
- Permits and older coastal construction. Older homes may include unpermitted work or shoreline elements. Use inspectors experienced with coastal structures, foundations, and roofing.
- Mello-Roos and special assessments. Some Southern California properties carry special assessments. These appear in title and tax reports and increase recurring costs.
- HOA or recorded covenants. Even single-family homes can have HOA obligations or CC&Rs. Request documents early if applicable.
- Market pace. Manhattan Beach often sees competitive conditions that compress negotiation windows. Shortening or waiving contingencies increases your risk and should be weighed carefully.
Contingencies and common delays
Common buyer contingencies in California include inspection, loan, appraisal, title review, and sometimes the sale of your current home. Contingencies protect you, but they can make your offer less competitive. Removing a contingency without the condition being satisfied can put your deposit at risk if you later fail to close for a non-contractual reason.
Frequent delays include low appraisals that require renegotiation, underwriting conditions for missing documents or large deposits, title issues involving liens or easements, repair negotiations that drag on near deadlines, and late HOA or assessment discoveries. Wire fraud incidents can also derail closings. Keep an eye on these risks and address them early.
Money, wires, and closing costs
You will prepare several categories of funds. The largest item is your down payment or price difference between the loan amount and purchase price. You will also pay closing costs such as lender and escrow fees, title policies, recording, prorated property taxes, and any HOA or home warranty fees.
As a general guide, buyer closing costs are often in the low single-digit percentage range of the purchase price. Exact amounts vary by loan type and negotiated terms. In Los Angeles County, property tax prorations are calculated to your closing date and reflect the assessed value plus voter approved assessments. Mello-Roos and special assessments, if present, are also prorated and should be confirmed.
Wire transfer security is critical. Wire fraud scams target real estate closings. Always verify wiring instructions by phone using a trusted number for your escrow officer, not one from an email. Follow escrow’s verification steps and never rush a transfer without live confirmation.
You must receive the Closing Disclosure at least 3 business days before closing. Review it promptly for loan terms, costs, and instructions. Last minute changes can delay closing.
Where a CPA-informed agent adds value
Funds flow planning matters in Manhattan Beach, where offer terms can be tight. A CPA-informed agent helps you map when deposits and closing funds must arrive, align source documentation with lender needs, and avoid unexplained transfers that trigger underwriting conditions. This is especially helpful for buyers with complex assets, large bonuses, or investment liquidations.
You also get tax-aware guidance on your property tax basis, likely reassessment at purchase, and coordination with your CPA for broader planning such as capital gains considerations, potential 1031 exchanges for investment properties, or second home strategies. The goal is simple. Keep your escrow on schedule while protecting your overall financial picture.
Your 90266 buyer checklist
Use this quick reference to reduce surprises and keep your file clean and timely.
Immediately after acceptance
- Open escrow and save your escrow officer’s confirmed contact information.
- Deposit your earnest money as required and keep proof of the wire or receipt.
- Apply for your loan and submit bank statements and identification promptly.
- Order and schedule your inspections. Include general home, WDO or pest, and any coastal specialty checks like roof or foundation.
- Request and review seller disclosures and the Natural Hazard Disclosure right away.
- Ask escrow and title for the preliminary title report and review any liens or assessments.
During escrow
- Keep clear bank records. Avoid large unexplained deposits or withdrawals.
- Track appraisal scheduling and ensure access is available to the appraiser.
- Monitor all contingency deadlines. Sign contingency removals in writing only when you are satisfied.
- Review your Closing Disclosure as soon as you receive it and reconcile line items.
- Schedule your final walkthrough within 48 hours of your target closing date.
Final days
- Call your escrow officer at a known phone number to verify wiring instructions before sending any funds.
- Confirm your funding timeline, especially if you are coordinating a sale or transfer of funds.
- Verify closing logistics. Confirm who delivers keys and where to pick up final documents.
Final thoughts
A smooth Manhattan Beach escrow is about sequencing and documentation. When you know what to expect, you can make cleaner decisions, protect your deposit, and close on schedule. With coastal specifics, competitive timing, and significant funds in motion, having CPA-level guidance helps you streamline lender approvals and avoid last minute delays.
If you want a clear, tax-aware plan from accepted offer to keys in 90266, connect with Lisa Bourque for discreet, high-touch buyer representation.
FAQs
What is escrow in a California home purchase?
- A neutral escrow company holds funds and documents, follows written instructions, and coordinates closing with title and your lender until the deed records.
How long does escrow usually take for a financed 90266 purchase?
- Many financed purchases close in about 30 to 45 days, with 30 days common in non-peak periods and longer timelines if appraisal or underwriting is complex.
When do you receive the lender’s Closing Disclosure?
- You must receive the Closing Disclosure at least 3 business days before closing, and you should review it immediately to prevent delays.
What happens if the appraisal comes in below the price?
- A low appraisal can delay closing and may require renegotiation, a price change, or an increased down payment to bridge the shortfall.
Are Mello-Roos or special assessments common in Manhattan Beach?
- Some Southern California properties include special assessments that appear in title and tax reports, and they will affect your ongoing costs if present.
What is the purpose of the final walkthrough?
- The final walkthrough, typically within 24 to 48 hours before closing, confirms the property’s condition and completion of agreed repairs.
