FSBO (For Sale By Owner):
What Sellers Need to Know About the Escrow Process & FSBO Sales
Selling a home without a real estate agent—commonly known as “For Sale By Owner” or FSBO—is an increasingly popular route for homeowners who want to take more control over the process and potentially save on commission fees. But while FSBO can offer flexibility and cost savings, it also means taking on responsibilities that would normally be handled by a professional.
FSBO & Escrow
One of the most critical aspects of a real estate transaction is the escrow process, and for FSBO sellers, understanding how escrow works is essential. At Eastland Escrows in Covina, California, we regularly assist FSBO clients with closing transactions smoothly, securely, and in compliance with California real estate law.
If you’re considering selling your home without an agent, here’s what you need to know about working with an escrow company and navigating the FSBO process with confidence.
What Is Escrow, and Why Does It Matter?
Escrow is a neutral third party that manages the funds, documents, and key transaction steps between the buyer and the seller. In any real estate transaction—FSBO included—the escrow holder protects the interests of both parties by:
Holding deposits and funds securely
Preparing and handling critical documents
Ensuring all contract conditions are met before the sale closes
Facilitating the transfer of title and disbursement of funds
Think of the escrow officer as the central point of communication and documentation for the sale. They do not represent the buyer or seller specifically but instead remain impartial to ensure everything follows state laws and the terms of the purchase agreement.
FSBO Transactions Still Require Escrow Services
Even though you’re selling the property yourself, that doesn’t eliminate the need for escrow. In fact, escrow becomes even more important in a FSBO transaction because there may be no agent guiding you or handling the paperwork.
When you choose an experienced, independent escrow company like Eastland Escrows, you’re partnering with a professional team that can:
Prepare the escrow instructions
Coordinate the signing of documents
Handle payoffs, prorations, and funding details
Work with lenders, title companies, and notaries
Coordinate closing and disburse funds appropriately
This takes the stress off your shoulders and helps ensure the deal closes on time.
Key Steps in a FSBO Escrow Process
Here’s how the process typically works when a FSBO seller contacts our Covina-based team:
1. Open Escrow
Once you and your buyer have agreed on terms and signed a purchase agreement, contact us to open escrow. We’ll begin gathering the necessary information to draft escrow instructions and request the buyer’s initial deposit.
2. Coordinate With Title and Lenders
We coordinate with the title company to ensure the property title is clear and ready for transfer. If there’s a buyer’s lender involved, we also work with them to manage the loan funding timeline and requirements.
3. Document Preparation and Delivery
Our team handles the preparation of all necessary documents—such as escrow instructions, disclosures, and settlement statements. We’ll work with both parties to collect signatures and confirm all terms are being met.
4. Manage Payoffs and Prorations
If you have an existing mortgage, we’ll request a payoff from your lender. We also calculate prorated amounts for property taxes, HOA dues, and other expenses to make sure everyone pays their fair share.
5. Closing
Once all terms are met—including inspections, contingencies, and financing—we’ll coordinate the final steps to close the sale. This includes recording the transfer with the county, disbursing funds, and delivering final documents to both buyer and seller.
How FSBO Sellers Can Prepare for Escrow
Selling your home without an agent means taking on the responsibility of ensuring the deal goes smoothly. Here are some ways FSBO sellers can prepare before opening escrow:
Have a written purchase agreement: Even if you’re selling to a friend or family member, always put everything in writing.
Be honest about the condition of the home: California requires sellers to complete a Real Estate Transfer Disclosure Statement (TDS) and other disclosure forms.
Be ready for negotiations: Without an agent, you’ll need to negotiate directly with the buyer or their representative.
Understand closing costs: FSBO sellers are still responsible for customary seller fees such as title insurance, escrow fees, transfer taxes, and loan payoff fees.
If you’re unsure what documents you need, or how to complete them, we’re happy to help walk you through it. That’s part of what we do every day for FSBO clients throughout Covina and the greater Los Angeles area.
Why Work With an Independent Escrow Company?
Not all escrow services are the same. Working with an independent escrow company means that we are licensed and regulated by the California Department of Financial Protection and Innovation (DFPI), and we are completely neutral—we do not have ties to brokers or title insurers.
This is particularly important in FSBO transactions, where trust and clarity matter more than ever. At Eastland Escrows, we bring decades of experience and personal attention to every file. Our clients benefit from:
Transparent fees
Expert handling of complex or unusual transactions
In-house and mobile notary options
Clear communication and consistent updates
Over 100 years of combined escrow experience
Whether you’re selling a single-family home, condo, mobile home, or investment property, we make the process smoother and safer.
The Bottom Line
Selling your home yourself can be empowering—but it doesn’t mean you have to do everything alone. Escrow is one of the most important steps in any real estate transaction, and having an experienced, impartial partner handling the details is the key to success.
If you’re a FSBO seller in Covina or the surrounding area, Eastland Escrows is here to guide you through the process. We’ve been helping clients close successful transactions since 1973, and we’d be honored to assist you with yours.
About Eastland Escrows in Covina, California
Eastland Escrows is an independent escrow company that has been providing complete escrow services since 1973. With over 100 years of combined experience, the team offers personal attention to every client, handling a variety of transactions including residential and commercial sales, refinances, probate, FSBO, short sales, 1031 exchanges, reverse mortgages, joint control/holding, vacant land sales, business sales/bulk sales including liquor license transfers, and mobile homes. In-house and mobile notary services are also available. Eastland Escrows is located at 302 E Rowland St, Covina, CA 91723. For more information, visit eastlandescrows.com.
