Funding, Recording and Closing in
Real Estate Transactions
Final Walkthrough: The final walkthrough typically occurs 0-2 days before the close of escrow, ideally after the sellers have removed all personal belongings from the home. This is your last opportunity to ensure that the property is in the agreed-upon condition and that any negotiated repairs have been completed.
Funding: Funding refers to the process of disbursing the necessary funds to complete a real estate transaction. This typically occurs after all conditions of the sale have been met, including inspections, appraisals, and financing approvals. Once the buyer’s lender has confirmed that all requirements are satisfied, the funds are released to the seller, allowing the transaction to proceed. This step is crucial as it ensures that the seller receives payment for the property and that the buyer can officially take ownership.
Recording: Recording is the legal process of documenting the transfer of property ownership in the public records maintained by the county or local government. After the transaction is funded, the deed and other relevant documents are submitted to the appropriate recording office. This step provides public notice of the new ownership and protects the buyer’s rights to the property. Recording also helps establish a clear chain of title, which is essential for future transactions and for resolving any potential disputes regarding property ownership.
Key Release: Keys to the property are released to the buyer only after confirmation from the city or county that the ownership has officially transferred. This ensures that the buyer can access their new home without any complications.
Moving Arrangements: It is advisable not to schedule movers on the closing day, as confirmation of the transaction and arrangements for key exchange can be uncertain. Delays may occur, and it’s best to have flexibility in your moving plans.
First Mortgage Payment: To allow time for moving, your first mortgage payment is usually delayed by a month. Be sure to confirm this arrangement with your lender to avoid any surprises.
Re-Keying the House: Re-keying the house is highly recommended for security reasons. Consider doing this after any tradespeople have completed their work and before you move in. This ensures that only you and those you trust have access to your new home.
By understanding these key aspects of funding and recording, you can navigate the closing process with greater confidence and ensure a smoother transition into your new property. If you have any questions or need further clarification, feel free to ask!
