Escrow

Escrow is the neutral third-party holding of funds and documents during an LA multifamily transaction, typically 45–90 days from PSA signing to close.

What it means in practice

Escrow companies coordinate the closing mechanics: holding earnest money, receiving loan funds, recording deeds, disbursing proceeds, and managing title transfer. California typically uses escrow companies; some other states use attorneys for the same role. The escrow period overlaps with due diligence, financing contingency, and final walkthroughs. Close occurs when all conditions are met and escrow disburses per instructions.

Why it matters for LA multifamily

LA multifamily escrow typically runs 45-75 days in clean transactions, 75-120 days when financing or diligence complexity extends. Sellers who cooperate promptly with escrow instructions close faster than sellers who treat escrow requests as low-priority.

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