Guide · Escrow timelines
How long does escrow take in California?
A home sale closes on the date in your purchase contract. A business sale needs a public notice at least 12 business days before the sale, and the state’s tax agencies have 30 to 60 days to answer clearance requests. The ABC says a person-to-person liquor license transfer can average about 75 days.
Escrow timelines by kind of sale
These are the law’s and the agencies’ own numbers. They aren’t a promise about your sale.
| Kind of sale | What sets the timeline | Numbers from the law or the agency |
|---|---|---|
| Home sale | Your purchase contract | The contract sets the closing date. After the loan funds, the deed is usually recorded the next business day. |
| Business sale (bulk sale) | The public notice and the tax clearances | Notice at least 12 business days before the sale (Commercial Code §6105). EDD: 30 days to answer. CDTFA: 60 days, and it says a clearance can take 60 days or more. FTB: 60 days. |
| Liquor license transfer | The ABC’s review | The ABC says a person-to-person transfer can average about 75 days. That includes the 30-day posting at the premises. |
| 1031 exchange | Federal tax deadlines | 45 days to identify the new property; 180 days, or your tax return’s due date (including extensions) if sooner, to receive it (IRS). |
How long does a home escrow take?
As long as your contract says. The purchase contract sets the closing date, plus the dates for the deposit, inspections and loan. Look for “Close of Escrow” in your purchase agreement. It’s usually written as a date, or as a number of days after acceptance. Not sure? Ask your agent.
Once the buyer’s loan funds, the deed is usually recorded the next business day (DRE). Then escrow pays off the old loans and pays the seller.
How long does a business sale escrow take?
When the bulk sale law applies, the notice has to be recorded, published and delivered at least 12 business days before the sale. That’s the legal minimum, not a closing date.
The tax clearances usually take longer. The EDD has 30 days after a request to issue a certificate or say what’s owed (UIC §1732), and it asks the seller to file its current returns first. The CDTFA has 60 days, counted from the latest of the request, the sale, or the day the seller’s records are open for audit (R&TC §6812), and it says a clearance can take 60 days or more (CDTFA). The FTB has 60 days for its withholding certificate (R&TC §18669).
If the EDD or the FTB misses its deadline, the law treats that as a clearance for the buyer. If the CDTFA doesn’t send its notice in time, the buyer no longer has to hold back part of the price.
How long does a liquor license transfer take?
In the ABC’s own words: “The license can average about 75 days for a Person-to-Person transfer.” No license issues until the notice has been posted at the premises for at least 30 days in a row, and the ABC counts that posting in its time (ABC).
While the ABC reviews the transfer, it may issue the buyer a temporary permit to keep the business open, for up to four calendar months (§24045.5).
What can slow an escrow down?
Most delays come from one of these. Your escrow officer will tell you if one is holding up yours.
Any sale
- The loan: the lender’s approval and the appraisal
- Title: an old lien or a court judgment that has to be cleared
- Anything the contract makes a condition, like repairs
- A missing signature or document
Business sales and licenses
- A tax clearance that waits on the seller’s filings
- Creditor claims that have to be settled first
- In a liquor license transfer, the ABC’s review
Sources and fine print
- Cal. Commercial Code §6105 (the bulk sale notice)
- Cal. Unemployment Insurance Code §1732 (EDD)
- Cal. Revenue and Taxation Code §6812 (CDTFA)
- CDTFA Publication 74: notifying CDTFA
- Cal. Revenue and Taxation Code §18669 (FTB)
- ABC: license application requirements
- Cal. Business and Professions Code §24045.5 (temporary permits)
- IRS: Instructions for Form 8824
- California DRE: Escrow, information for consumers
Checked September 2026 against California law and the state agencies’ own pages. Page updated . This is general information, not legal or tax advice. Every deal is different, so talk to your attorney or CPA about yours.