What Is the Closing?
Closing a real estate sale is similar to closing the escrow. It simply means that the deal is completed and both parties have come to an agreement as to the selling price of the home and conditions of the sale.
Most likely, the sales contract contains a closing date, which is when the final papers are signed and is the date the buyer becomes the owner of the home. For the closing to proceed, all issues regarding matters such as financing and insurance will need to have already been resolved.
This does not necessarily mean that the buyer can you move into the house on the closing date. The sales contract should state when the seller is to move out and the buyer is to take possession of the property. In most cases, the buyer takes possession at closing, but the parties can also negotiate alternative conditions, such as the seller remaining in the home for a period of time. This is typically the case if the seller is waiting to close on another home purchase or complete the construction of a new home.
Protections for the buyer may also be reflected in an escrow arrangement, such as money being held in escrow to be paid to the buyer if the seller remains in the home longer than agreed.
The Legal Function of Escrow
The closing agent handles all necessary documents involved in the close of the sale, including insurance receipts, deposits and closing cost payments. The closing agent is also responsible for registering the mortgage and deed with the appropriate courts. Once the closing session has been successfully completed, the deed to the property is updated with the new seller’s name and is given to the lending institution financing the transaction. The fulfillment of this transfer is known as the recording process. Once it is done, the escrow agent releases monetary funds to the seller, provided by the buyer. Once the seller has received the funds and the buyer becomes responsible solely to the lending institution, the escrow has been closed.
What Happens at Citrus Heritage Escrow?
During the escrow period, our title department begins researching and examining all historical records pertaining to the subject property. Barring any unusual circumstances, a commitment for title insurance is issued, indicating a clear title or listing any items which must be cleared prior to closing. The commitment is sent to you for review.
Your escrow officer follows instructions on your contract, coordinates deadlines, and gathers all necessary paperwork. For example, written requests for payoff information (called demands) are sent to the Seller’s mortgage company and any other lien holders.
When choosing an escrow company there can be many important factors to evaluate. Fees, location, staff and even recommendations from friends and colleagues are all things to consider. With Citrus Heritage Escrow by your side, you can rest assured that when you receive your settlement check, you’ve gained the maximum benefit from your home sale or purchase.
Call us today with any questions or concerns. Our professional Escrow Agents will help you through this exciting yet confusing process. (951) 335-7200