The close of escrow date / possession of key / transfer of property ownership, are not always the same day!! Many buyers expect that they will sign the final loan documents and get a key to the new house immediately as soon as the ink is dry. Sellers think that the day they sign over the deed, the house will close and they receive a check.
THE BUYER DOES NOT RECEIVE KEY,
THE SELLER DOES NOT RECEIVE CHECK,
..........UNTIL PROPERTY CLOSES AND RECORDS AT THE COUNTY!
The "Closing Day Dance" can have many hidden surprises which result in delays, which make business of buying or selling a home a frustrating experience if buyers and sellers are not "prepped" for "The Closing Day Dance."
Unfortunately, this can be particularly difficult if Buyer relocating to a new area. Buyers arrive to the escrow office with a fully loaded U-Haul truck, then have to find a hotel for an extra night as loan docs may be delayed, or do not reach the county recorder in time to close the same day as they sign.
Here is an example:
Let's say that lender says on Thursday that we are closing on Monday, yet I have no closing statement from escrow yet on Friday at 2:00 PM. I call lender to see what is going on, lender says they needed one more signature from buyer on a form, which was recieved by underwriting. Buyer needs to draw a cashier's check from their bank, however, credit union closed all weekend, which means they need an amount of closing check Friday, but loan docs not in to escrow yet. Did I mention that Buyer planning to move in on Monday night and has no hotel booked? Buyer driving in from out of state. thinks they can move right in on Monday night.
The solution (Dance!): Agent calls lender to find out if docs are actually going to be there Monday, and amount of check needed from buyer. Agent calls buyer to arrange for a wire transfer with their bank on Monday for closing funds, as well as a backup plan for a hotel room on Monday night if they do not close and record by 4:00pm Monday. (There is a cutoff time for county office to record the deed). Buyer is reminded to call utility companies before 5:00 PM to have water and power in place for Monday night if all goes well and they close on time.
There are no guarantees on closing day, as anything can happen! I have seen an escrow stop cold, because the seller died on closing day, before seller was able to sign deed.
If the real estate agents for both Buyer and Seller are ready for the delays and surprises that occur at closing, the experience will be as smooth and uncomplicated as possible.
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