SIGNING vs. FUNDING vs. CLOSING

Recently, I was reminded that closing customs & practices can vary tremendously from state to state. While I was reviewing closing documents with buyers relocating from New York, they expressed concerned about signing an “estimated” HUD, and asked when they had to come back in to sign the “final” documents.

This couple told me when they bought their New York co-op, the seller, lender, agents and attorneys sat at the same table; documents and money were passed furiously around the room and the buyers were handed keys as they left the office. The deed and loan documents were recorded at some point later, but possession occurred at the closing table.

Not so in Washington State! For a buyer coming from out of the area, our system can seem confusing. So, here are a few tips for those relocating and buying here:

SIGNING
Ideally, the loan documents arrive (hopefully) a day or more before the buyer comes in to sign, but the lender purchase funds are nowhere in sight. The buyer and seller sign at different times and I can’t remember if I’ve ever seen an attorney attend a residential closing. Rarely do the agents or loan officers attend.

FUNDING
Once the buyer signs the loan documents they are returned to the lender for review. Most lenders require at least 24 hours to review the documents before they will wire the funds to escrow.

CLOSING
The funds arrive to the escrow office from the lender and escrow is given permission by the lender to release the documents to record. The title company then sends the Deed (conveys ownership from the seller to the buyer) & Deed of Trust (secures the loan documents) via a runner to the County courthouse and delivers these documents* to the recorder’s office. The recorder’s office processes the documents and stamps them with a “recording number”. The acknowledgement of recording numbers for the documents provides assurance to all parties that title has passed to the new buyer. That conveyance is communicated via the title company to escrow who then calls the agents, buyer and seller to congratulate them on a successful consummation of the sale.

This, my fellow Washingtonians (and transplants), is the golden moment of closing.

Depending on how the contract is set up, this is usually the point where keys will be given to the buyer (now the new homeowner) by the selling agent according to the agreement on the Purchase Contract.

*see my future blog on the emergence of the E-Recording process