Buying a home in Hanford should feel exciting, not confusing. If the word “escrow” makes you pause, you’re not alone. Most first-time buyers have questions about who does what, where your money goes, and how long each step takes. This guide explains the Hanford escrow process in plain language so you know what to expect, how to protect your interests, and how to keep your closing on track. Let’s dive in.
What escrow is in California
Escrow is a neutral third party that holds money and documents, follows the purchase contract, and coordinates your closing once all conditions are met. The escrow officer is not your attorney. They carry out written instructions from the buyer, seller, and lender according to the signed purchase agreement.
In California, escrow agents are licensed at the state level. Title insurance is regulated by the California Department of Insurance. Most residential purchases use standard forms from the California Association of Realtors (CAR), including the Residential Purchase Agreement. These forms set the deadlines for your deposit, inspection, loan, and appraisal contingencies.
Who does what in a Hanford closing
- Escrow company: Opens your file, holds your deposit, tracks deadlines, coordinates payoffs, prepares closing statements, and releases funds at recording.
- Title company: Researches ownership and liens, issues the preliminary title report, and provides lender’s and optional owner’s title insurance.
- Lender: Approves your loan, orders the appraisal, issues your Closing Disclosure, then funds your loan.
- Agents: Guide you through negotiations, deadlines, inspections, and paperwork.
- Kings County offices: The Recorder’s Office records your deed. The Assessor and Tax Collector handle reassessment, tax bills, and any special assessments.
Your step-by-step Hanford escrow timeline
Every contract is a little different. The sequence below reflects common timing in Kings County and typical CAR forms. Always follow the dates in your signed agreement.
1) Offer accepted and escrow opened
After the seller accepts, the agents send the contract to the escrow company named in the agreement. Escrow “opens” when they receive the signed contract and your deposit instructions.
2) Earnest money deposit
You typically deposit earnest money within the number of days in your contract, often 2 to 3 business days after acceptance. In many California markets, deposits are commonly about 1 to 3 percent of the price in normal conditions. Local competition can influence amounts, so rely on your agent’s guidance for current Hanford practice.
3) Contingency periods: inspections, loan, appraisal
- Inspection contingency: You order inspections and review results. Many CAR timelines range from 7 to 17 days, but your contract controls. Common choices include general home, termite, roof, and HVAC. Sewer or septic inspections can be smart depending on the property.
- Loan contingency: Your lender works toward conditional approval. Many contracts allow about 21 to 30 days, but confirm your form and loan type.
- Appraisal contingency: The lender orders an appraisal to confirm value. If the value is lower than the price, you may renegotiate, add cash, or cancel if your contingency is still active.
4) Preliminary title report and review
The title company issues a preliminary report early in escrow, often in the first week. Review it for liens, easements, CC&Rs, and any exceptions. Unresolved liens must be cleared or paid at closing.
5) HOA documents (if applicable)
If the home is in an HOA, you receive governing documents and financials. Your contract and California law provide a period to review. Ask for these early so you have time to decide.
6) Repairs, credits, and updates to terms
After inspections, you can request repairs, a credit, or a price adjustment. Any repairs should include a timeline in the escrow instructions. Keep your lender in the loop if a credit or price change affects your loan.
7) Final loan conditions and clear to close
Once you meet underwriting conditions, the lender issues a clear to close. Funding and recording often happen a few days after.
8) Final walkthrough and closing day
You do a final walkthrough 24 to 48 hours before closing to confirm the property’s condition and any agreed repairs. On closing day, escrow disburses funds, the deed records with Kings County, and keys transfer per your contract. Recording makes the sale official.
Typical escrow length
A 30-day closing is common. Escrows can be shorter or longer depending on loan type, contingency periods, or issues that arise. Government-backed loans or complex title items can stretch to 45 to 60 days.
Buyer protections: deposits, contingencies, inspections
- Earnest money: Your deposit shows good faith and is held by escrow. If you cancel within an active contingency period according to your contract, it is typically refundable. If you remove contingencies and later breach, the seller may be entitled to the deposit per the contract.
- Contingencies: Inspection, loan, and appraisal contingencies protect you. Track each deadline and removal in writing.
- Inspections: In Hanford and the Central Valley, common inspections include a general home inspection and a wood-destroying pest inspection. Consider roof, HVAC, sewer or septic (as applicable), and any specialized checks based on age and condition.
Title insurance and recording in Kings County
- Preliminary title report: Confirms current ownership, loans, liens, easements, and restrictions. Address defects early so they do not delay closing.
- Lender’s title policy: Usually required by your lender to protect their interest in the loan.
- Owner’s title policy: Optional but recommended to protect your ownership. Who pays can vary by county and negotiation. Ask your agent or title company about current Kings County custom.
- Recording and transfer taxes: Your deed records at the Kings County Recorder’s Office. Confirm any local transfer tax practice with the county or the city of Hanford. Escrow handles recording and allocates fees according to the contract.
- Property taxes: A change of ownership generally triggers reassessment under California law. Expect a supplemental bill after closing. Ask the Kings County Assessor and Tax Collector about any special assessments.
Common delays and how to avoid them
- Title defects: Unpaid liens, judgments, or incorrect vesting. Mitigation: review the preliminary title report early and clear issues quickly.
- Unpermitted work: Discovered during inspections. Mitigation: get contractor estimates, negotiate repairs or credits, or require permit steps before closing.
- Loan underwriting delays: Missing documents or slow responses. Mitigation: submit a full file early and reply promptly to lender requests.
- Low appraisal: Value below price. Mitigation: support value with comparable sales, prepare to negotiate, or plan for extra cash if needed.
- HOA document delays: Slow delivery or disputes. Mitigation: request HOA docs as soon as escrow opens and build realistic review time into your contract.
Real Hanford-style scenarios
- Quick financed close: A buyer offered with standard contingencies on a mid-market home. Deposit was made within 2 business days. Inspections finished by day 10 with a small seller credit for termite treatment. Appraisal met value. Close of escrow occurred on day 30.
- Appraisal gap negotiation: A buyer’s appraisal came in below contract price. The parties split the difference: a price reduction plus a small buyer cash add. The deal stayed within the loan contingency timeline and closed in 32 days.
- Title cure extension: A payoff error revealed a small recorded lien. Escrow obtained a demand and recorded a release. Closing extended one week and recorded as soon as the title cleared.
Handy checklist to track your escrow
- Within 48 to 72 hours of acceptance: escrow opened and earnest money delivered per the contract.
- Week 1: preliminary title report received; order inspections; request HOA documents if applicable.
- Inspection period: complete inspections; submit any repair requests or cancel if warranted within your contingency window.
- Loan period: complete loan application; provide documents; lender orders appraisal.
- Pre-closing: review your Closing Disclosure; confirm final wire amount; schedule final walkthrough.
- Closing day: sign, fund, record, and pick up keys per your contract.
Ready to move forward?
You do not have to guess your way through escrow. With the right plan and clear deadlines, you can move from acceptance to recording with confidence. If you want a customized timeline based on your loan type and the property you are targeting in Hanford, let’s talk. Schedule a free consultation with Unknown Company.
FAQs
When is earnest money refundable in a Hanford purchase?
- Typically when you cancel under an active contingency (inspection, loan, or appraisal) and meet the contract’s deadlines; after removing contingencies, the seller may be entitled to the deposit if you breach.
How long does escrow take for Hanford buyers?
- Many escrows close in about 30 days, but timing depends on your contract, lender processing, and any title or repair issues; government loans or complex files can take 45 to 60 days.
Who usually pays for the owner’s title policy in Kings County?
- It varies by county and negotiation; many California sales have the seller pay for the owner’s policy, but local custom can differ, so confirm with your agent or title company.
What happens if the appraisal is lower than the purchase price?
- You can renegotiate with the seller, add cash to cover the gap, or cancel if protected by an appraisal or loan contingency; your contract controls the options.
Which inspections are most important for Hanford homes?
- A whole-house inspection and a wood-destroying pest (termite) inspection are common; consider roof, HVAC, and sewer or septic based on the property’s age and systems.
