Closing escrow is legal transfer of title to the property from the seller to the buyer and is the culmination of the transaction.
Grant Deed and Deed of Trust Once all the conditions of the escrow have been satisfied, the escrow officer advises you of the date the escrow will close and takes care of the technical and financial details. Usually the Grant Deed and Deed of Trust are recorded within one working day of the escrow’s receipt of loan funds. This completes the transaction and signifies the “close of escrow”.
Escrow Instructions Once all of the terms and conditions of escrow of both buyer and seller have been fulfilled, and all closing conditions satisfied, the escrow officer will return the instructions and documents to the lender for a final review.
Following the review, which usually occurs within a day or two, the lender is ready to fund the loan and advises the escrow officer, so that the necessary work can be completed to record the documents and “close” the escrow.
Personal Identification
There are several acceptable forms of identification which may be used during the escrow process. These include: A current driver’s license, Passport or State of California Department of Motor Vehicles ID Card.
One of these forms of identification must be presented at the signing of escrow in order for the signature to be notarized.
Escrow Money Sellers will also be asked how proceeds are to be disbursed. On rare occasions, funds are insufficient to close escrow then the seller must deposit money into the escrow. Should this situation occur Seller will need to obtain a cashier’s check or certified check issued by a California financial institution made payable to title company in the amount indicated by the escrow officer.
A personal check may delay the closing since Title Company is required by law to have “good funds” (check clearance) before disbursing funds from escrow. Similarly, an out-of-state check could cause a delay in closing, due to delays in clearing the check.
After The Close of Escrow
After the loan has been finalized, the documents signed and recorded, and the financial settlement completed, there are still several steps which must be accomplished to complete the transaction. Your existing loan is being paid in full from the escrow.
Your lender is required by law to issue a full reconveyance (release) of their loan. As soon as the deed of reconveyance removing the previous Deed of Trust is received, it should be recorded and the original returned to you. Be aware, this may take several weeks.
