What really happens after your offer is accepted on a Sonoma Valley home? If you are buying or selling in Wine Country, escrow can feel mysterious, especially with rural details like septic, wells, and wildfire risk in the mix. You deserve a clear path from offer to keys. In this guide, you will learn how escrow works in Sonoma Valley, what to expect at each step, the typical deposits and contingencies, and how to protect your funds. Let’s dive in.

Escrow in California, simply explained

Escrow is a neutral third party that holds funds and documents while everyone completes the contract steps. When the conditions are met, escrow coordinates recording and funding so the sale can close. Escrow follows written instructions from the purchase contract and both parties. In California, escrow companies are licensed and regulated by the Department of Financial Protection & Innovation.

In Sonoma Valley, most offers use California Association of Realtors forms. These set standard timelines and contingencies that your agent will negotiate. You can learn more about common statewide practices from the California Association of Realtors.

Who is at the table

• You and the seller
• Your real estate agents
• Escrow officer and often a title company partner
• Your lender and the appraiser if you finance the purchase
• Inspectors for home, pest, roof, septic, well, pool, or chimney as needed
• Sonoma County offices, including the Recorder for deed recording and PRMD for permit and septic or well records

Sonoma Valley escrow timeline

Every contract is unique, but most local escrows follow a similar flow.

Day 0: Offer accepted

You and the seller sign the purchase agreement. The clock starts on deposits and contingency deadlines.

Days 1–3: Open escrow

Your deposit is due, often within three business days. Escrow opens the file, sends instructions, and orders the preliminary title report. The title report flags easements, liens, or special assessments early.

Days 1–10: Inspections and requests

You schedule inspections fast. A general home inspection usually comes first, followed by any specialists. In Sonoma Valley, septic and well systems are common, so plan for those inspections and review PRMD permit records. Buyers often have 7–17 days to complete inspections, with 10 days being common.

If you discover issues, you can request repairs or credits, or you can cancel within your inspection contingency window.

Early escrow: Appraisal and loan

Your lender orders the appraisal and advances underwriting. Expect to supply documents quickly. Many Northern California escrows set the loan contingency at 21–30 days. If the appraisal value comes in low, you may renegotiate or use other contract options.

Mid escrow: Title review

Escrow and title deliver the preliminary title report for your review. You check for easements, unpaid taxes, PACE assessments, or other exceptions. Curable title issues should be addressed before closing.

Pre-close: Final steps

You complete a final walk-through about 24 to 48 hours before closing. If you are financing, your lender must provide a Closing Disclosure at least three business days before consummation, per CFPB rules. You wire your closing funds and secure an insurance binder, which is vital in wildfire-prone areas.

Closing day: Sign, fund, record

You and the seller sign final documents. The lender funds the loan, escrow records the deed and loan documents with the Sonoma County Recorder, and funds are disbursed. You receive keys and possession as the contract states.

Deposits and contingencies

Earnest money basics

Most California buyers offer an earnest money deposit of about 1–3 percent of the purchase price. In competitive Wine Country situations, deposits can be larger or structured in stages. Contracts often call for the initial deposit within three business days of acceptance, though timing is negotiable.

You can deliver funds by cashier’s check or bank wire. Always follow escrow’s verified instructions to avoid fraud.

When your deposit is refundable

Escrow holds deposits in a trust account. Refundability depends on your contingencies. If you cancel within an active inspection or loan contingency per the contract, your deposit is typically refundable. If you default without a contingency, the seller may have remedies that the contract will outline.

Common Sonoma Valley contingencies

• Inspection contingency, often 7–17 days, with 10 days common
• Loan contingency, often 21–30 days
• Appraisal contingency, often aligned with the loan contingency
• Title review contingency
• HOA review, if applicable
• Sale-of-buyer’s-home contingency, less common in hot markets
• Septic or well contingencies for rural properties

Rural property checks that matter

• Septic systems: request pump history and schedule a septic inspection during your inspection window. PRMD records can be helpful.
• Wells: order a water test and review well permit history.
• Agricultural disclosures: expect Right-to-Farm notices and the normal presence of farm activity nearby.
• PACE assessments and special taxes: confirm in the title report and plan for payoff if required.

Title and closing costs

Title insurance and review

If you finance, your lender requires a lender’s title policy. Buying an owner’s policy is strongly recommended to protect you against pre-existing title defects. Review the preliminary title report early for easements, CC&Rs, tax liens, recorded leases, or PACE assessments so curable items can be cleared before closing.

Who pays what

Buyer closing costs with financing commonly run about 2–5 percent of the purchase price. These include loan fees, appraisal, title and escrow charges, and recording. Sellers typically pay real estate commissions, often totaling around 5–6 percent, plus escrow and title fees and any loan payoffs. All allocations are negotiable and spelled out in the contract.

PACE and other assessments

Property Assessed Clean Energy obligations and other special assessments may appear as liens on title. These can affect your costs and may need to be paid off before closing. Escrow and title will flag these early so you can decide how to proceed.

Wire fraud safety

Wire fraud is a real risk in real estate. Protect your funds with simple habits:

• Verify wiring instructions by phone using a trusted number for escrow, not a number from an email.
• Do not rely on emailed instructions alone. Scammers spoof email addresses.
• Confirm the escrow company’s name and bank details match the escrow instructions.
• If anything changes last minute, stop and call. Guidance is available from the FBI on real estate wire fraud.

Sonoma Valley differences to expect

Core California escrow steps are similar statewide. What changes in Wine Country is the due diligence. Sonoma Valley often involves rural parcels, estate homes, and vineyard-adjacent properties, so buyers usually complete fuller inspections and sometimes need longer contingency windows. In very competitive moments, buyers may shorten or waive contingencies, but thorough septic, well, agricultural, and wildfire reviews are common.

Wildfire risk is a key factor. Review Natural Hazard Disclosure reports and check local fire severity maps through CAL FIRE. Discuss defensible space, insurance options, and potential mitigation with your insurer during escrow.

Buyer checklist for Sonoma Valley escrow

• Within 1–3 days: open escrow and deliver your deposit.
• Days 1–7: schedule general, pest, roof, septic, well, chimney, and pool inspections as needed.
• Days 1–10: complete loan application and provide lender documents.
• During the inspection period: request repairs or credits in writing and track deadlines.
• Early in escrow: review the preliminary title report for easements, liens, and PACE.
• Three business days before close: review your Closing Disclosure from the lender per CFPB rules.
• Before wiring funds: confirm instructions by phone with escrow.

Work with a local, concierge team

Escrow is where details create outcomes. In Sonoma Valley, that means balancing lifestyle goals with careful reviews of title, septic or well systems, and wildfire considerations. When you partner with a seasoned local team, you gain a calm, organized process and strong negotiation.

The Kathleen Leonard Team is Compass-affiliated and Sonoma based. We bring deep Wine Country roots, curated marketing for estate and country properties, and disciplined transaction management for complex deals. If you are planning a purchase or sale in Sonoma Valley, we would be honored to guide you from offer to closing with clarity and care. Connect with the Kathleen Leonard Team to Request a private Wine Country consultation.

FAQs

How long does escrow take in Sonoma Valley?

• Many escrows close in 30 to 45 days, but timing depends on your contract, loan readiness, inspections, and title clearance.

How much earnest money is typical in Sonoma County?

• A common starting point is 1–3 percent of the price, with larger deposits in competitive situations to show strength.

When is my deposit refundable during escrow?

• If you cancel within active contingencies, like inspection or loan, and follow contract terms, your deposit is typically refundable.

What inspections are essential for rural Sonoma properties?

• In addition to a general and pest inspection, plan for septic and well inspections and check PRMD permit records.

How does the appraisal affect my loan and price?

• If the appraisal is below the contract price, you may renegotiate, increase your down payment, or use a contract option, depending on terms.

What closing costs should I expect as a buyer?

• With financing, buyers often pay about 2–5 percent of the purchase price for loan, appraisal, title, escrow, and recording fees.

How do I avoid wire fraud during escrow?

• Call escrow using a verified phone number to confirm wiring instructions and never rely on emailed instructions alone per FBI guidance.

Where can I confirm title, septic, or well records in Sonoma County?

• Your title report will list recorded items, and you can review permits and septic or well records with PRMD, while recordings are handled by the County Recorder.