One question we often get asked is, “when do I get my keys?”
We love delivering our clients the keys to their new home so we’re here to help with that question!
Funding vs Recording
The San Francisco Bay Area home buying process is full of paperwork and checklists. Torii and our clients celebrate ‘closing’ as the last step before we deliver keys as the last step before happy buyers prepare to move into their new home. But, unlike the closing or settlement process in some states, California defines ‘closing’ not as the date when borrowers sign the loan documents, but as the date and time the deed is recorded.
As of October 2015, a consummation date refers to the date the borrower becomes legally obligated on the loan – and a Closing Disclosure must be given to the borrowers at least three business days before they are scheduled to sign the loan documents.
Borrowers may take up to an additional three days to review and approve the loan terms and costs and/or to rescind the loan if any of the terms have changed. (This does not equate to a right to rescind the purchase agreement.)
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 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 one of the Bay Area counties records and time stamps the parties’ Grant Deed, ownership of the property changes hands – and the real estate transaction is ‘closed’ the moment that deed has been recorded.
Once this happens, it’s time to deliver the keys!
The steps to getting there can be complex. Having a top San Francisco Bay Area agent can help make your purchase manageable and trouble-free.