The Escrow Timeline
Acceptance Day - Contact / Counteroffer is signed and accepted.
Day 1 – Inspection Period for Buyer begins. The day after the contract is accepted.
3 Days – Deadline for Seller to deliver SPDS -Seller Property Disclosure Statement
5 Days – Deadline for Seller to deliver CLUE Report – Insurance Claims History Report
10 Days – Deadline for buyer to cancel contract after reviewing SPDS and Claims history. 10-day inspection period for buyer ends. Agent must submit buyers’ inspection notice to request repairs or cancel contract.
15 Days – Seller deadline to respond to BINSR – Buyers’ Inspection Notice.
20 Days – Deadline for buyer to decide whether to accept the seller’s response to BINSR. The contract is final.
37 Days – Deadline for buyer to secure loan, sign and deliver documents to Escrow officer. Deadline for seller to make required repairs.
40 Days – Loan funds, escrow officer distributes funds. Deed and affidavit of value are recorded with county recorder. Escrow closes an buyer gets keys.
3 Rules to Timeframe
• RULE No. 1: Acceptance. Day of acceptance is perhaps the most important rule, considering all other time periods depend on it. “Acceptance” is the day when the offer or (counteroffer) is accepted in writing and then delivered back and personally received by the other party. Only when this occurs is there a binding contract. The next day after acceptance is considered day one.
• RULE No. 2: Count every day. In all the C.A.R purchase agreements, “days” mean calendar days. Everyday must be counted whether it's a weekday, weekend, or holiday. There are two exceptions here. The escrow deposit is the first exception and allows for three “business” days. The second exception is when the last day falls on a Saturday, Sunday, or holiday.
• RULE No. 3: If the last day falls on a weekend or holiday, skip to the next business day. Per the C.A.R contracts, you skip to the next business day when the last day for the performance of any act required by the agreement” falls on Saturday, Sunday, or holiday.