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Are You New to San Mateo County? Here's How Buying a House Works Here.

By
Real Estate Agent with Engel & Völkers - Carlsbad Village DRE# 01343201

If you are new to California, and especially to San Mateo County, buying a house here is likely going to be a different experience than what you've experienced in your old state.  To begin with we do not use lawyers in the buying and selling process.  In our area, Northern California, the Title and Escrow Company is the key to everything that we do once a contract has been ratified.

Once your offer has been accepted by the seller, your good faith deposit check is deposited into an escrow account.  The Escrow company is the holder of all funds that you must deposit prior to the close of the escrow and the recording of your new home.  They really are a neutral third party between you and the seller and they take their instructions from you, the buyer, and the seller sometimes directly from you both, and sometimes from your agents.

When it comes time to sign your loan documents and deed the signing takes place at the Title & Escrow Company, which are combined entities in Northern California.  We make an appointment for the signing and are there with you and your loan officer and are there to make sure everything is correct.  Once you've signed your documents the recording of the deed generally takes place about 48 hours later.  The signing is really determined by your lender and when they have drawn up the loan documents and sent them to the Escrow company for review. 

In San Mateo County, recordings of new sales generally takes place first thing in the morning and we generally receive a call from the Escrow company to tell us "You are on record!"  The next call is to you with congratulations on the purchase of your new home.  At that time you can get the keys to your new home and make it all yours.

The reason I have specified that Northern California does things a specific way is because Southern California works differently that we do.  They have separate Escrow Companies and Title Companies.  San Mateo County uses a different contract that most of the state as well.  For some reason, the Bay Area, and specifically Marin County, San Francisco County and San Mateo/Santa Clara Counties each have their own contracts.  They are each similar to the statewide contract but we like to be different here.

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Sounds similar to Maryland and Virginia, at least Northern Virginia. 

We don't use attorneys either.  Many title companies are owned by attorneys but they are not in any way involved with the contract. 

Agents rule here and we do everything.  Once the contract is accepted by the parties, we get it to the title company, they order the title abstract, survey, etc.  Agents manage all of the inspections. 

At settlement, the title company is a neutral party, although, if it's a difficult contract, I will hire them to represent the buyer.  The title company's job is usally quality control.  They reveiw the title to make sure there are no liens or encumbrances on the title or lot. 

All of the forms are Fannie Mae forms.  It's not complicated at all.  Deed is recorded the day following settlement and the buyers get the keys at settlement.  No extra trips to pick up keys.  Recordation is prefunctory with the exception that in Virginia, the agents don't get paid until after recordation.  That has always puzzled me since the buyers already have the keys and have usually already moved in.  I believe that Virginia title attorneys have figured out a way to make some money on the money in escrow until they pay us.  But, then I'm paranoid.

Nov 18, 2007 09:57 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
Good information. It is interesting to see how the job of agents is different in different states.
Nov 18, 2007 10:03 PM
Lenore Wilkas
Engel & Völkers - Carlsbad Village - Carlsbad, CA
Your North County Lifestyle & Real Estate Expert
In Northern California we don't get paid until the file is closed after recording.  We handle all inspections on listings, as they are generally done by the seller.  If they haven't been done, we have a form for the buyer to sign to give us authorization to order inspections for them.  California is a litigious state and because of this we have forms for everything under the sun! But until the property is in the name of the new owner the keys stay in the hands of the agents.  Too many attorneys in California with nothing to do.....
Nov 19, 2007 05:43 AM