Are you seeing the words title and escrow used like they mean the same thing? In San Francisco, they work together but play very different roles. When you understand who does what, you avoid surprises, keep your timeline on track, and protect your money. In this guide, you’ll learn the essentials, plus how a typical Cole Valley closing actually flows. Let’s dive in.
Title vs. escrow: what they do
Title company: protect ownership
- Runs a title search and issues a Preliminary Title Report that shows ownership, liens, easements, CC&Rs, and other recorded items.
- Advises, often via escrow or your agent, on what must be cleared before you close, such as payoffs or releases.
- Issues title insurance at closing: an Owner’s Policy for you and a Lender’s Policy for the bank if you have a loan. Premiums are a one-time cost at closing in California.
- Coordinates lien payoffs and prepares documents needed to clear title matters. Title often handles recording with the County, coordinated with escrow.
Escrow officer: move money and documents
- Acts as a neutral third party and follows written instructions from both sides and, when applicable, the lender.
- Holds deposits, receives loan funds, prepares settlement statements, coordinates signatures, and disburses money only after recording.
- Orders what is needed to close, such as the prelim title report, payoff demands, HOA estoppels, termite reports, and natural hazard disclosures when applicable.
- Manages contingency deadlines and the release of documents and funds after recordation.
How title and escrow work together
- Escrow orders the Preliminary Title Report early and shares items that need clearing.
- Title confirms the legal steps to clear issues. Escrow gathers payoffs, signatures, and funds to satisfy those steps.
- For you: title reveals what clouds ownership. Escrow makes the exchange of money and recorded documents happen.
San Francisco closing timeline at a glance
Timelines vary by contract and financing, but here is a common pattern for a financed buyer in San Francisco.
Day 0: Offer accepted
- Both parties sign the purchase agreement. Escrow is opened the same day or within one business day.
Days 0–2: Deposit and setup
- Escrow provides an escrow number and secure wiring instructions. You send the earnest money within the contract window, commonly 1–3 business days.
Days 1–10: Prelim and disclosures
- Escrow orders the Preliminary Title Report. The seller delivers required disclosures early so you can review them during your contingencies.
- Escrow and title start ordering payoff demands, HOA estoppels for condos, and any required record searches.
Inspection and loan contingencies
- Inspection contingency is often 7–17 days. Loan contingency is often 17–21 days, depending on your contract. Your lender orders the appraisal, which typically takes 1–2 weeks after your file is ready.
Days 10–30: Clear issues and underwrite
- Title exceptions that require payoffs or releases are addressed. For condos, HOA documents and estoppels can take a week or more.
- Your lender works toward clear-to-close, pending final signatures and funding.
Final 3–7 days: Sign and finalize figures
- Escrow prepares your settlement statements for review. You arrange your final funds by wire or cashier’s check per instructions.
- Buyers sign the loan note and deed of trust. Sellers sign the grant deed, payoff authorizations, affidavits, and transfer tax declarations.
Funding and recording day
- The lender wires funds to escrow and escrow confirms they are good. Title and escrow record the deed and deed of trust with San Francisco County.
- After recording, escrow disburses money, pays off liens, pays commissions and closing costs per instructions, and title issues the final policies.
Post-closing
- You receive your final statements and copies of recorded documents. Title issues the Owner’s and Lender’s Policies.
Local note: In the Bay Area, financed escrows often run 30–45 days. Cash or pre-approved buyers can close faster, sometimes in 14–21 days, while HOA or probate matters can extend the timeline.
What you sign and when
Buyer signatures
- Final escrow instructions and settlement statements.
- Lender package, including the promissory note and deed of trust.
- Acknowledgments for disclosures if not handled earlier.
- Any HOA buyer forms when applicable.
Seller signatures
- Grant deed conveying title to the buyer.
- Payoff authorizations and affidavits, including non-foreign status when applicable.
- Transfer tax declarations and closing statements.
- HOA questionnaires or estoppels when applicable.
How funds move on closing
- Your earnest money sits in the escrow trust account until closing or termination per the contract.
- On closing day, the lender wires loan funds to escrow and you wire your remaining cash to close. Escrow verifies funds using secure procedures.
- Escrow and title pay off the seller’s mortgages, judgments, and any agreed charges, then record the deed and deed of trust.
- Only after recordation does escrow release the seller’s net proceeds and issue title insurance policies.
Important protection: Wire fraud is a real risk. Always confirm wiring instructions by calling the escrow office using a verified phone number you already have, not one from an email alone.
Who pays which fees in SF
All fee allocations are negotiable, but here is common local practice.
Title insurance premiums
- Seller often pays for the Owner’s Policy. Buyer typically pays for the Lender’s Policy when there is a loan. Premiums are based on the purchase price and paid once at closing.
Escrow fees
- Commonly split 50-50 between buyer and seller. This can vary.
Recording fees and transfer taxes
- San Francisco has a Real Property Transfer Tax. Escrow prepares the transfer tax forms and collects payment at closing. Locally, the seller often pays this tax, depending on price and negotiation.
Other fees
- HOA estoppel fees are usually a seller cost. Natural hazard disclosure reports and pest inspections are often seller costs, while lender-required termite clearance can fall to the buyer. Home warranties and courier or wire fees are negotiable. Seller loan payoffs are paid through escrow at closing.
Cole Valley and SF issues to watch
Cole Valley’s housing mix includes older single-family homes, classic Victorians, and multi-unit buildings. That creates unique title and escrow considerations.
Unpermitted or undocumented improvements
- Older homes may have remodels without permits. These are not necessarily title defects, but lenders and buyers often want clarity, and title policies may exclude unrecorded matters. Get disclosures early and align with your contract.
Easements, party walls, and encroachments
- Narrow lots and shared walls are common. The prelim will list easements and recorded agreements that you should review with your agent and lender.
HOA and condo estoppels
- Two- to four-unit buildings and condos rely on HOA budgets, rules, assessments, and estoppels. Delays in HOA packets are a frequent cause of extended escrows.
Municipal requirements
- Expect transfer tax forms at closing. San Francisco also has sewer lateral rules and soft-story or seismic retrofit programs that may affect multi-unit buildings. These items can add steps and time.
Liens, judgments, and payoffs
- Any liens or judgments on the prelim must be paid off or subordinated. Escrow obtains and uses official payoff demands to clear them.
Trusts, estates, and historic factors
- Trust certifications or probate orders may be required if a property is sold out of an estate. Historic preservation rules can affect future exterior changes. These are not title defects, but buyers should understand them during due diligence.
Quick checklists
Buyer checklist (Cole Valley/SF)
- Get your escrow number and contact details immediately after acceptance.
- Deposit your earnest money on time and verify wiring instructions by phone.
- Read the Preliminary Title Report early and ask about any exceptions that concern you.
- Confirm that seller disclosures and municipal forms are complete and review them during contingencies.
- Book inspections quickly and verify any sewer lateral or pest requirements that apply.
- Clarify who pays for title insurance and escrow fees per your contract.
- Move your loan forward fast so appraisal and clear-to-close arrive well before the target close date.
Seller checklist (Cole Valley/SF)
- Provide required disclosures and municipal forms early.
- Be ready to sign payoff authorizations for any mortgages or judgments.
- Disclose any unpermitted work and discuss how it may impact financing or negotiation.
- Understand transfer tax obligations and plan for them at closing.
- Review your closing statement carefully before you sign.
Pro tips to avoid delays
- Order HOA documents and estoppels as early as possible for condos and multi-unit buildings.
- Respond quickly to title exceptions so escrow can obtain releases and payoffs.
- Confirm wire instructions by a verified phone call, and never rely on email-only changes.
- Schedule your signing appointment early in the final week so there is time to cure any last-minute document issues.
Wrap-up
When you know the split between title and escrow, you can navigate San Francisco closings with confidence. Title protects your ownership by clearing and insuring it. Escrow manages the money, signatures, and recording so your transfer is precise and secure. With local items like sewer laterals, HOA estoppels, and transfer taxes, a hands-on approach makes all the difference.
If you want a streamlined, concierge-level experience from contract to keys, connect with Eric Turner. Eric’s team coordinates closely with title and escrow so you can move fast and close smoothly.
FAQs
What is the difference between title and escrow in San Francisco?
- Title researches ownership and insures it, while escrow is the neutral third party that holds funds, follows instructions, coordinates signatures, and disburses after recording.
How long does escrow take in San Francisco?
- Financed purchases often run 30–45 days, while cash or highly prepared buyers can close in 14–21 days, and HOA or probate matters can extend timelines.
Who typically pays for title insurance and escrow fees?
- In many local deals the seller often pays the Owner’s Policy, the buyer pays the Lender’s Policy, and escrow fees are commonly split 50-50, though all items are negotiable.
What causes most closing delays in Cole Valley and SF?
- HOA packet delays, unresolved title exceptions like liens, municipal requirements such as transfer taxes or sewer lateral items, and appraisal or loan issues.
How do I avoid wire fraud during closing?
- Always confirm wiring instructions by calling your escrow officer at a verified phone number you already have, and never act on wiring changes sent only by email.
