Offer Accepted! What Happens Next in a Los Angeles Real Estate Deal
Congrats—you’ve crossed the threshold: your offer has been accepted. Whether you’re the buyer or the seller, this marks the beginning of the escrow and contingency phase, where diligence, communication, and timing become key. Knowing what to expect can keep the process smooth and reduce surprises. Here’s a step-by-step breakdown of what typically happens next in a Southern California real estate transaction.
Step-by-Step: What Happens After Acceptance
1. Escrow Is Opened & Earnest Money Deposited
Once the purchase agreement is signed by both buyer and seller, the escrow process officially begins.
The buyer deposits earnest money (often 1–3% of purchase price) into an escrow account, held by a neutral third party.
Escrow officers collect the signed purchase agreement, disclosures, and preliminary title information.
2. Disclosures, Reports & Seller Obligations
The seller provides mandated disclosures (such as property condition, natural hazards, known defects) to the buyer as required by California law.
A preliminary title report is generated to reveal any liens, easements, or title issues attached to the property.
Seller can also conduct or provide reports (e.g. termite/pest, pre-listing inspection) where appropriate.
3. Contingency Period & Buyer Due Diligence
The buyer typically has a window—often 17 days by default per standard California purchase contracts—for inspections, appraisal, loan approval, and review of disclosures.
During this period:
A home inspection and any specialty inspections (roof, foundation, HVAC, etc.) are scheduled.
The lender orders an appraisal to determine whether the loan amount matches the home’s value.
The buyer finalizes their loan underwriting conditions.
Title search and title insurance commitments are sorted.
If issues are found, the buyer may request repairs, credits, or negotiate with the seller. If the buyer is dissatisfied and within their rights, they could cancel under contingencies. (All contingency removals or cancellations must be made in writing.)
4. Contingency Removal & Contract Performance
Once inspections, appraisal, and loan approval satisfy the buyer, the buyer delivers a removal of contingencies in writing.
At that point, the deal becomes more firm—and backing out may risk earnest money.
If any contingency is not met (e.g., appraisal comes in low, financing falls through), parties negotiate or cancel, guided by the contract terms.
The seller may issue a **Notice to Buyer to Perform** giving the buyer a short window (often 2 days) to comply, or the seller can cancel the transaction if the buyer fails to act.
5. Final Preparation & Closing Steps
Once all contingencies are removed, escrow moves toward closing.
The buyer deposits remaining funds required for the purchase (down payment + closing costs).
The seller confirms repairs (if any) have been completed and ensures property condition adheres to agreed terms.
Final closing documents and statements are prepared.
The buyer signs loan documents, and escrow coordinates funding, deed recording, and distribution of proceeds.
In California, the sale is considered officially closed when the deed is recorded and title transfers to the buyer.
6. Fund Disbursement, Keys & Recording
After closing, funds are disbursed to the seller, agents, and any lienholders.
The county recorder’s office stamps the deed, which legally transfers ownership.
Finally, the buyer receives keys and occupancy rights.
Timeline Expectations & Key Variables
The typical escrow timeline in California ranges from **30 to 60 days**, though many deals close within **30 to 45 days** depending on contingencies, lender timelines, and responsiveness.
Delays can arise due to financing issues, appraisals that come in low, title problems, or repair negotiations.
Also remember: contingency periods (e.g., inspection, appraisal) by default are often **17 days** under standard forms, though parties may shorten or extend them in agreement.
All critical steps—contingency removals, negotiations, document signings—must meet contractual deadlines and be delivered in writing
Tips for Buyers & Sellers to Stay On Track
Communicate proactively: respond quickly to requests from escrow, lender, or agent to prevent delays.
Stay organized: keep all documents, disclosures, repair records, and correspondence in one accessible place.
Don’t trigger major life changes: avoid large financial moves, applying for new credit, or job changes during escrow, which could disrupt loan approval.
Work with experienced professionals: a savvy agent, escrow officer, and lender familiar with SoCal and LA-area practices will help you navigate obstacles.
Anticipate negotiation points: buyers may push for credits or price adjustments after inspections; sellers should be prepared to respond strategically.
Respect deadlines: contingency removals, delivery of documents, and performance notices often have tight, contractually binding windows.
Sources & Further Reading
How Long Does Escrow Take in California: 30 to 60 days typical timeframe — CalWest Escrow, HomeBay
California contingency periods and buyer investigation timeline — USRealtyTraining, Ellis Posner
Closing, funding, and recording processes in California real estate — First California Escrow, California Dept. of Real Estate documents
Quick-Guide to California contingency removal & performance notices — CAR
