What does Close of Escrow mean to a Buyer?
There are many steps Buyers take to successfully purchase a home in Long Beach but rest assured getting married isn’t one them. This story will only apply if you are a buyer in Long Beach and getting a loan to finance your purchase.
Your written offer to purchase will include the date of the Close of Escrow, meaning the date when the seller no longer owns the property and you the buyers does! This is exactly what Close of Escrow means!
The majority of buyers’ applying for a mortgage write the following on the purchase agreement, “CLOSE OF ESCROW shall occur 30 Days after acceptance”. As a Buyer you should become familiar with the phrase “Close of Escrow” and the abbreviation C.O.E. because you will hear and see it often.
Towards the end of the Escrow period the lender will provide a Closing Disclosure also known as the CD. This Disclosure gives a clear accounting of the loan terms, loan amount, payment, fees and closing conditions. There is a mandatory 3 day waiting period between delivery of the CD to you the buyer and signing of the loan documents.
The loan documents are sent to the Escrow Company handling the transaction. The Escrow Officer handling the file will call you to arrange a time for you to sign the loan documents or ‘docs’. After signing the Escrow Officer reviews and organizes the loan docs before sending back to the lender. The lender will also review and then once all is in order they will arrange the ‘funding’ of the loan.
Most banks are located on the east coast which means if the Escrow Officer does not get word of loan funding prior to 2 pm the lender has missed the cut-off of 5:00 pm EST and the funding is delayed a day.
Now we finally get to the reason this whole story started with married couple at the Courthouse. In Los Angeles County funding and recording of the Deeds do not occur on the same day. The recording happens the day after the funding! So in most transactions everyone involved in the sale, meaning sellers, buyers, their agents and the Escrow Officer wait expectedly for first the goods news of funding and then we repeat the experience the next day and wait for notification that the Deed has been successful recorded. Once Escrow receives a copy of notarized Deed they can close the file which includes dispersing funds to the Seller.
So you may be wondering at this point what the picture of the couple getting their marriage license at the Norwalk County Courthouse have to do with this blog?
Well in some rare instances the Buyer or the Seller need the property to Close Escrow on the same day the loan funds. In this case a ‘special recording’ is required. For Long Beach Buyers and Sellers the recording occurs at the Norwalk County Courthouse.
I had the pleasure of helping a buyer complete a special recording and it was here that I took that picture of the bride and groom getting their marriage license. Special recordings are just that, special, meaning very few Closings happen on the same day. If you have questions about purchasing or selling a property in Long Beach or surrounding area please call me today at 562-243-2171. I am happy to help!
Michele “K” Kreinheder
Making it Better Living in Long Beach!