Monday, December 15, 2008

Closing Escrow – Finally, The House Is Yours!

An escrow closing is the pinnacle of the real estate transaction. It signifies legal transfer of title (ownership) from the seller to the buyer and the completion of all conditions set up as part of the escrow.

Generally, ownership is shown through a grant deed. This deed is recorded with the County within one working day of the escrow holder’s receipt of loan funds from the buyer’s lender. This recording completes the transaction and is what is commonly known as the “close of escrow.”

Prior to this and once all of the conditions of escrow have been satisfied, and escrow officer or your real estate agent will inform you of exactly the date escrow will close.

After the escrow officer has verified with the County Records Office that the documents have recorded and legal transfer of title has occurred, the final closing papers are disbursed (usually within one day of close). The final acts of closing the file, preparing statements, and the disbursing of any remaining funds is the end of the escrow. At this time you may or may not be receiving the keys. Depending on how the purchase contract was set up, it may be as long as three days before you are allowed to move in. Reference the first page of the purchase agreement, paragraph 3b, to determine when you will be given possession.

To obtain keys, we will contact you to arrange a drop off or pickup. We hope that you will take this time to check out the place, order a pizza, break out a bottle of wine, and spend some time warming up to your new home. There’s still plenty of work ahead with the move in but this is the perfect time for a little celebratory break. Congratulations, you’ve earned it!