How the Escrow Process Works for Malibu Buyers

Escrow can feel mysterious, especially on the coast, where bluffs, seawalls, and permits add layers you will not see inland. If you are buying or selling in Malibu, you want a clean, timely close with no last‑minute surprises. In this guide, you will learn exactly how escrow works here, what timelines to expect, which coastal issues matter, and how to stay ahead of delays. Let’s dive in.

What escrow means in Malibu

Escrow in California is a neutral third party that holds funds and instructions until all conditions are met and the deed is recorded. The escrow holder coordinates document signatures, earnest money, payoff of liens, title clearance, and final disbursements. For the legal and consumer framework, refer to California’s state guidance on escrow oversight through the Department of Financial Protection and Innovation and standard forms and practices from the California Association of REALTORS.

Because Malibu often involves high‑value coastal homes, escrow here tends to include deeper due diligence. You will likely see more specialty inspections, a closer title review for easements or public access rights, and extra attention to coastal permits and septic or sewer status.

Timeline at a glance

Actual timing follows your purchase agreement, but these ranges are common in Malibu:

• Cash: often 10 to 21 days if inspections and title are straightforward.
• Financed: often 30 to 45 days, with more time for jumbo loans.
• Complex coastal: 60 to 90 days if you need geotechnical work, permit history research, or HOA and shoreline reviews.

Step-by-step escrow

1) Open escrow

• Your offer is accepted and escrow opens, usually within 1 to 2 days.
• You deposit earnest money by the date in the contract.
• Escrow sends an opening package to you and your agent.

2) Early documents and inspections

• The seller delivers required California disclosures, including the Transfer Disclosure Statement, Natural Hazard Disclosure, and any lead paint form for pre‑1978 homes. If there is an HOA, you receive CC&Rs and financials.
• You schedule inspections. In Malibu, that often includes general home, wood‑destroying organism, septic or sewer review, pool or spa, and coastal and structural specialists as needed.
• If you are financing, your lender begins underwriting and orders the appraisal when the property is ready.

3) Due diligence and contingencies

• The title company issues a preliminary title report that lists easements, liens, and restrictions. Coastal properties may include lateral access or other recorded items that you need to review.
• You complete inspections and request repairs or credits if needed. You can also ask for time to verify permit history and coastal approvals.
• You remove contingencies on schedule or request extensions by mutual agreement.

4) Closing prep

• Escrow issues final figures and your lender provides a Closing Disclosure for financed deals.
• You do a final walkthrough to confirm condition.
• You wire funds to escrow. Always verify wiring instructions by calling a known phone number to avoid fraud.

5) Recording and possession

• Escrow records the deed with the Los Angeles County Recorder.
• Funds disburse and you receive keys per the contract.

Malibu coastal due diligence essentials

Buying or selling near the beach or on a bluff calls for careful review. These are the items that most often drive timelines and negotiations.

Title and beach access

Coastal parcels can carry recorded easements or other rights that affect use and privacy. The preliminary title report is your roadmap. If questions arise about coastal access or the public trust, review the title exceptions closely and consult coastal resources from the California Coastal Commission as needed.

Permit history and improvements

Confirm that additions, guest houses, decks, retaining walls, and shoreline structures have the proper approvals, including Coastal Development Permits where required. You can search local records through the City of Malibu Planning and Building. Missing permits or prior enforcement matters can impact insurance, lender approval, and closing.

Septic or sewer

Parts of Malibu use septic systems rather than city sewer. Ask for permits, maintenance records, and any recent inspections. For research and records, check Los Angeles County Environmental Health. If the home is on sewer, request confirmation of the connection.

Bluff, hillside, and shoreline stability

Bluff‑top homes often benefit from a geotechnical or structural engineer’s opinion. If a seawall or revetment exists, confirm condition, permits, and maintenance duties. Lenders can request engineering if erosion risk affects collateral.

Flood and storm exposure

Some Malibu homes fall within FEMA flood zones. If you finance, your lender will require flood insurance for certain zones. You can locate the property’s zone through the FEMA Flood Map Service Center and plan for insurance quotes during escrow.

Earthquake coverage

Earthquake insurance is optional, but many buyers of high‑value homes choose it. Explore policy options and deductibles through the California Earthquake Authority and private carriers so you can decide before closing.

Contingencies that matter here

• Inspection contingency. Scope is broader on the coast. You may include geotechnical, coastal, structural, seawall, and septic evaluations.
• Loan contingency. Jumbo underwriting can require more time. Coordinate appraisal timing with inspections.
• Appraisal contingency. Luxury comps can be scarce, which adds time. Prepare data and context up front.
• Title contingency. Review exceptions, coastal access items, and any shared road or seawall agreements.
• Permit and improvement contingency. Confirm Coastal Development Permits and city building permits. Address any unpermitted work.
• HOA review contingency. If the property is in an HOA or has shared maintenance obligations, review CC&Rs, reserve studies, and recent statements.

Costs, insurance, and taxes

• Title insurance and escrow fees. These protect your interests and compensate the escrow holder for services. Fees scale with price and are negotiated by contract.
• Recording and transfer taxes. Los Angeles County charges recording and documentary transfer taxes on conveyance. For current fees and processes, refer to the Los Angeles County Recorder.
• Hazard insurance. Lenders typically require homeowners insurance. If the home is in a FEMA flood zone, flood insurance is also required. Research the zone through the FEMA Flood Map Service Center.
• Earthquake insurance. Consider coverage through the California Earthquake Authority or private policies.
• Special assessments. Check the Natural Hazard Disclosure and local disclosures for Mello‑Roos or district assessments.

Escrow will provide a final closing statement with itemized costs. In Malibu’s price ranges, plan for fees that reflect the scale and complexity of the transaction.

Common delays and how to avoid them

• Wire fraud. This is a real risk. Use escrow’s secure portal and confirm wiring instructions by phone using a known number. Do not rely on email alone. State consumer resources from the DFPI explain how escrow works and how to protect yourself.
• Appraisal and underwriting. Luxury appraisals can take longer, and underwriters may ask for added documentation. Order early and keep your file updated.
• Title exceptions. Old liens, unclear easements, or shared shoreline obligations can slow recording. Surface these items early and resolve them during the contingency period.
• Permit remediation. Unpermitted work can lead to credits, repairs, or escrow holdbacks. Start the permit search right after opening escrow.

Be deal-ready: seller checklist

• Gather building permits, Coastal Development Permits, and any structural or engineering reports.
• Provide septic permits and maintenance records or proof of sewer connection.
• Compile HOA documents and recent statements if applicable.
• Share prior inspection reports, repair invoices, and any termite or WDO reports.
• Disclose any known unpermitted work and start remedies if feasible.
• Coordinate payoff statements and choose experienced escrow and title partners.

Be deal-ready: buyer checklist

• Schedule general home, WDO, septic or sewer, and any needed coastal or structural inspections immediately.
• Review the preliminary title report and discuss easements or access items with your agent and title officer.
• Check the property’s FEMA flood zone through the FEMA Map Service Center and plan for insurance.
• If on septic, research records through LA County Environmental Health and schedule any required inspections.
• Verify all wire instructions by phone to a known number. Use secure portals only.
• Budget extra time for specialty inspections and permit research on bluff or beachfront homes.

Final thoughts

Escrow in Malibu runs on the same core rules as the rest of California, but the coast adds moving parts. When you plan for geotechnical review, permit history, septic or sewer status, flood and earthquake considerations, and a deeper title review, you protect your investment and reduce stress. With the right preparation and a negotiation‑focused strategy, you can close on time and with confidence.

If you are planning a move or weighing a sale, get a tailored plan that fits your timeline and risk profile. Connect with Tom Dolezel for local guidance backed by elite negotiation and The Agency’s reach.

FAQs

What is escrow in California real estate?

• Escrow is a neutral third party that holds funds and instructions, coordinates title clearance and payoffs, and records the deed once all conditions are met, per state guidance from the DFPI.

How long does escrow take in Malibu?

• Cash deals often close in 10 to 21 days if straightforward. Financed deals often run 30 to 45 days. Complex coastal reviews can extend to 60 to 90 days.

Which inspections are common for Malibu coastal homes?

• General home, WDO, septic or sewer, pool or spa, plus coastal and structural specialists as needed. Bluff‑top properties often add geotechnical review, and seawalls may need evaluation.

How do coastal permits affect closing?

• You may need to confirm Coastal Development Permits and city approvals for additions, decks, seawalls, and guest structures. Research records through the California Coastal Commission and the City of Malibu.

Do I need flood or earthquake insurance in Malibu?

• Lenders require flood insurance for homes in certain FEMA zones. Check your zone at the FEMA Flood Map Service Center. Earthquake insurance is optional but commonly considered through the California Earthquake Authority.

What closing costs apply in Los Angeles County?

• Expect title insurance, escrow fees, recording and documentary transfer taxes, plus possible special assessments. For current county fees and recording procedures, see the Los Angeles County Recorder.