Stockton, CA asked in Real Estate Law for California

Q: What is the time restraints on getting payment for selling a home after escrow closes in the state of California

After escrow closes what would be the reasons payment would be delayed for months in California

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1 Lawyer Answer
James L. Arrasmith
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  • Sacramento, CA
  • Licensed in California

A: In California, the time frame for payment after the close of escrow can vary depending on the terms of the purchase agreement and the specific circumstances of the transaction. Generally, payment is due upon the close of escrow and the transfer of ownership from the seller to the buyer.

However, there may be circumstances that delay payment after the close of escrow, such as if there are issues with the buyer's financing or if there are disputes over the condition of the property. In these cases, payment may be delayed until the issues can be resolved.

Additionally, if there are outstanding liens or judgments against the property, the title company may hold back a portion of the sale proceeds until those liens are satisfied.

It's important to note that the terms of the purchase agreement may also specify a time frame for payment after the close of escrow, and parties should review the agreement carefully to understand their rights and obligations.

If payment is delayed beyond the agreed-upon time frame, the seller may have legal options for seeking payment, such as filing a lawsuit or pursuing mediation or arbitration. It's recommended that sellers consult with an experienced real estate attorney who can advise them on their legal rights and options.

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