Legal Question in Real Estate Law in California

Re: Eskrow

This is the first question (after 5000+ that I've answered and as many more I've passed) that comes from my own Zip code. Howdy, neighbor!

Are you being represented by a real estate broker or agent? If so, he or she would be familiar with the deal terms and in a better position to advise you. If not, I'd say that use of an escrow is a good idea when both parties have agreed to the terms and the buyer is ready to sign a purchase contract and put up a deposit. The deal and the escrow can be made contingent upon Coastal Commission approval (or any other condition of closing), and you'll have the property locked up until the conditions fail or you default. Of course, escrow is a two-way street - the escrow holder acts as an agent of both proncipals - and the selling estate would have to agree to the escrow as well.

So, in sum, I'd say an escrow would be pretty usual even if closing may be months away, but that both buyer and seller need to agree beforehand on the terms of the sale and the escrow instructions.