In the state of California, an escrow is considered “closed” on the date that the grant deed, transfering title from seller to buyer, is recorded at the County Hall of Records.
There is no closing table, and no settlement room. The grant deed is delivered to the County Hall of Records by a title insurance representative, who waits in line at the recording window.
When the representative reaches the window, the grant deed is handed to the county clerk, who stamps it with a date and document number.
The title insurance representative will then notify the title insurance officer that the recording is completed; the title officer will in turn notify the escrow officer; and the escrow officer will notify buyer, seller and agents that “We have confirmation.”
When the title insurance company receives confirmation of recording from their representative at the hall of records, the title company will wire transfer all funds they are holding from the buyers lender to the escrow company.
At that point, the escrow officer will begin the process of balancing the file and disbursing funds to payoff the seller’s existing mortgages, liens, and any other payments – such as a pest control company – that the officer has been instructed to pay through escrow.
The buyer becomes the legal owner of the property the day the grant deed is recorded. However, it is not unusual for a purchase contract to allow a seller an extra one or two days after the close of escrow to vacate the property. This be can a benefit for the buyer, since the seller will often use the extra day to make sure the home is thoroughly cleaned.
Would you like to know more? Call Bob Taylor Properties at 323-257-1080 or email at email@example.com