Deed Of Trusts | Closing Escrow
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Closing Escrow
Once you have completed all of the necessary instructions and requirements for escrow, and it begins to take its normal course, you are now ready to close escrow which is often referred to as “close of escrow”, “closing” or “settlement”. Regardless of the term used, the closing of escrow is when all of the final papers are signed, and the closing officer is prepared to record the deed to the property, and the sale goes to the seller.
The instructions for escrow that you will be requested to sign could be unilateral (separate set of instructions for the buyer and separate ones for the seller) or bilateral (one set of instructions for the seller and one for the buyer). Different areas use different methods. Those that use unilateral escrow instructions generally sign at the end of the escrow term, while those that use bilateral escrow instructions usually draw up and sign in the initial opening of escrow.
Be advised that once the escrow documents have been signed, if you try to cancel, regardless of the reason, you may be subject to penalties or even legal consequences. Therefore, it is imperative that you carefully read and re-read all the closing documents. Double check the documents for clerical or mathematical errors.
Sometimes issues may arise that can cause a delay in the closing process, such as one party may be not be able to sign the papers at the closing time, because they are unavailable. Although this can be a problem, it is one that can be dealt with in several different ways such as:
- The documents can be sent to the unavailable party ahead of time and pre-signed.
- A power of attorney can be implemented to allow another individual to act on behalf of the absent party and sign for them.
When everything is in the clear, and the documents have been appropriately signed, the escrow officer will inform the title company to record the trust deed, who will then deliver the loan package (all the executed loan documents) to the lender. As soon as the lender is in possession of these documents, they will then release to the title or escrow agent their loan proceeds. The title attorney or escrow agent will ensure that the exchange of documents and funds runs smoothly.
Thus, escrow closes when every condition of the escrow instructions have been met or waived, the documents have been recorded, and the funds have been released. A closing statement will be sent to you, which describes how and to whom the documents and funds were distributed.
Related posts:
- Deed Of Trust | Escrow instructions
- Trust Deed Escrow Important Facts
- Trust Deed Escrows
- Deed Of Trusts | Coppercrest Funding
- Trust Deeds Notes Information
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