How Long After Funding Does Escrow Close?
Clarify the final steps in real estate. Understand the timeline from escrow funding to official closing.
Escrow plays a central role in real estate transactions, providing a secure and neutral framework for the exchange of funds and documents. It safeguards the interests of both buyers and sellers throughout the complex process of property transfer. Understanding the “funding” stage within escrow is important, as it marks a significant step toward the finalization of a home sale, leading directly into the official closing.
Understanding Escrow Funding
Escrow funding refers to the point in a real estate transaction when all financial components for the purchase are gathered in the escrow account. This includes the buyer’s loan proceeds from their mortgage lender, combined with any down payment and funds for closing costs provided by the buyer. The escrow holder, a neutral third party, ensures these funds are securely held until all conditions of the sale contract are met. Once the lender disburses the loan amount and the buyer’s remaining cash contribution is confirmed, the transaction is considered “funded.”
The Official Closing Process
After escrow has been funded, the focus shifts to the official closing, which culminates in the recordation of the deed and other documents with the county recorder’s office. The escrow officer, upon confirming receipt of all funds, prepares the final closing documents for recording. These documents include the deed, which transfers ownership from seller to buyer, and any mortgage or deed of trust documents securing the buyer’s loan. The escrow officer or a representative then delivers these documents to the county recorder’s office, where they are time-stamped and entered into the public record. This recordation is the moment when legal ownership of the property changes hands.
Typical Timelines and Influencing Factors
The period between escrow funding and official closing, marked by deed recordation, spans a short timeframe, often one to three business days. This timeline can be influenced by several factors. The operating hours and processing speed of the county recorder’s office are important; a transaction funded late in the day might not be recorded until the next business day. Public holidays also extend this period, as government offices are closed. Any last-minute administrative checks or discrepancies identified by the escrow company or the county could delay the recordation process.
What Happens After Closing
Once escrow closes with the recordation of the deed, outcomes unfold for both the buyer and seller. For the buyer, this moment signifies legal ownership, and they receive the keys to their new home shortly thereafter, unless a prior agreement for seller occupancy exists. Buyers also receive their final loan documents and a copy of the recorded deed. For the seller, the outcome is receiving the sale proceeds, via wire transfer or cashier’s check, with funds available within 24 to 48 hours after closing. The escrow company also provides the seller with a final closing statement, detailing all financial debits and credits from the transaction.