Closing Question (contract, Realtors, sellers, loans)

[Mjames]

We have a pending sale on our home in Calif. and signed the closing paperwork with the title company today. The actual close is not scheduled to happen for another 1 1/2 weeks. Is there a typical norm for the number of days between when the seller signs the closing paperwork and the sale completes? Can someone tell me what's normally happening at the title company and buyer's loan company between the time when the seller signs and the sale actually closes?

Appraisal was completed 2 weeks ago and I'm told everything is fine. Buyer's are putting 20% down and (I'm told again) have ample income, excellent credit, and ample cash in reserve.

I have this same question out to my realtor, but it may take him a few days to answer and I am curious.

Thanks in advance!!!!

[DavePautsch]

mjames,

In very broad brush strokes "Closing" is made up of two key elements; (1) the final approval of the loan and the release of funds by the lender and (2) the recording of the deed at the court house.

In actuality, when the seller signs the paperwork has no real impact on the timing except in those cases (like VA loans for example), where the seller may have to sign some documents associated with the loan.

In your original contract was there a date selected for closing? In Oregon we establish a "no later than" date and, while I used to live in Ca, I don't recall any longer how it worked there. That date provides the target for the lender to prepare documents and get them to escrow so that the BUYER can sign and the transaction can close on time.

Typically, once the buyer signs the loan documents it can take 24-72 hours to get that paperwork back to the lender for final review/approval and release of funds. Once the money is released, the escrow company will record the deed, distribute the remaining funds as appropriate, and the deal is "closed."

Remember also that the closing date and the possession dates can differ too. Many buyers miss that point and have the moving truck scheduled on the same day as they sign papers...and sometimes that can be a very bad move (I know, I did it myself once before I got into this crazy real estate business).

Best of luck with your closing...if you have any other questions, the best person to ask is the escrow/title company.

[michael krotchie]

As Dave mentioned, "closing" and "close of escrow" are two different terms that quite often are confused. The "closing" that most people think of is when you go to the title office to sign your documents.

Actual "close of escrow" is, as Dave said, when title is recorded at your county recorder's office.

Check your contract for the close of escrow (COE) date. Typically it is 1-3 days after signing and before close of escrow, time that the lender uses to approve loan docs and wire the funds to the escrow company.

[DMenscha]

In CA real estate forms approved by the CA Assn of Realtors, have a time is of the essence clause. Escrow can close as soon as both the parties have completed their obligations to the other party. It drives me nuts when we get a party on the other side of a transaction that uses the "no later than" date as a closing date.

[palmcoasting]

I use 'on or before' and we also have time is of the essence clause.
In my neck of the woods what the op has done is "pre-signed" meaning her side of the transaction is done and what is left is for the buyer to close and the bank to fund. We often have our sellers pre-sign although not two weeks in advance unless they are going to be out of town. I never have everyone in at the same time to close.

[Mjames]

Thanks for the replies!

My realtor did get back with me and basically told me the same thing. Our buyers went ahead and signed their closing papers yesterday, and then did a quick walk-through with no issues. Their loan should have authorization to fund by the middle of next week and the sale should close by late next week.

Thanks Again!!