Seller had notarized deed to me ten days before we closed. Why so soon? (disclosures, 3%)
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I closed escrow and took possession of my home about two weeks ago. Today, I received the notarized deed from the County Clerk that grants me this real property. It was signed, dated, and notarized by the seller ten days before escrow was closed??? This is puzzling to me.
On the date the seller notarized that deed, I had wired my 3% Earned Money Deposit in the morning. However, we had not yet gone through inspections, disclosures, and request for repairs. And, most importantly, I had not yet paid the other 97% of the agreed price.
Why would the seller notarize the deed in my name ten days before escrow was closed?
He might have been going out of town and wanted to leave it with the closing agent to handle after the funding came through. Pretty common for a seller needing to sign paperwork when they might not be available near the actual closing date.
I am guessing is that it may have been an escrow requirement for the seller to sign the notarized deed way ahead of time:
1. The buyer puts up the earnest money deposit into escrow.
2. The seller puts up a signed, notarized deed into escrow.
This minimizes either party from getting "cold feet" about the transaction.
I am guessing is that it may have been an escrow requirement for the seller to sign the notarized deed way ahead of time:
1. The buyer puts up the earnest money deposit into escrow.
2. The seller puts up a signed, notarized deed into escrow.
This minimizes either party from getting "cold feet" about the transaction.
I doubt it was this. I've had sellers leaving the country. There are requirements for notaries and when you are in a foreign country you have to get notarized at an American embassy. Easier to just sign and notarize the deed and have it held in escrow until closing. I would bet the seller was going to be in a place without easy access to a notary and didn't want to hold up the deal over it. It is quite common.
Why would the seller notarize the deed in my name ten days before escrow was closed?
A Deed isn't effective until it's delivered (and, in some cases, recorded). There are lots of reasons why someone might sign a Deed ahead of time.
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