Escrow Thursday: What Is Closing?

What Is Closing?

I have been asked many times, “What do you mean by closing?” The answer is actually quite simple. Simple when you understand what is being talked about, and confusing when you do not know what is being talked about. If you are unfamiliar with the terminology, how can you know what is being said? Closing is when the real estate transaction is finalized.

The first step to closing is done at the escrow office. After all of the conditions of the purchase and sale agreement have been satisfied, you will get a call to schedule an appointment for signing all of the documents related to the sale/purchase of your new home. You arrive and a large stack of papers are placed in front of you and you are asked to sign most of them. Then the other party in the transaction will come into the escrow office and sign the documents that they need to sign.

Once all of the documents are signed, and the money is ready to be transferred to the appropriate party, the escrow office sends their representative to the County Clerk’s office to record the change of title. The County Clerk will then record the change of title in their records and gives the escrow representative receipt for the filing with a recording number. At the instant that the title is recorded and a recording number is issued, the escrow transaction is closed.

Once the escrow office is notified of the recording number, they call the bank/lender and the funds are released to the appropriate parties and their job is done. You can now move into your new home.

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