Funding and Recording: The Closing Process


The home buying process is full of paperwork and checklists, with a flurry of activity near the end of it. Buyers everywhere celebrate ‘closing’ as the last step before they receive the keys and prepare to move into their new home. California defines ‘closing’ not the date when borrowers sign the loan documents, but as the date and time the deed is recorded.

At least three business days after the Closing Disclosure has been delivered, the loan documents are ready to be signed. But the ‘close of escrow’ does not actually occur until after the completion of three very separate steps:

·         Loan signing – The date when all the loan documents are signed and notarized.

·         Loan funding – When the lender releases funds to title/escrow.

·         Recording – This is the date – the true ‘closing of escrow’ – when the deed and any other associated recordable documents are recorded at the County Recorder’s office.

Only after escrow receives confirmation from the title company that these documents have been recorded, does the escrow officer issue net proceeds, after all charges and prorations, to the appropriate parties.

The moment the Grant Deed is time-stamped by the County Clerk is the moment that ownership of the property changes hands – and no real estate transaction is ‘closed’ until that deed has been recorded.

But the steps to getting there can be complex. Having a seasoned realtor like Tim Brodowski at your side can help make it manageable and seamless. Call Tim at 858-354-2354 for more information about buying or selling your home.  BRE #01224576