Legal Question in Real Estate Law in California
Is it advisable for me to sign escrow papers before the buyers' docs are sent to the escrow by the lender and the buyers sign first? What happens if I sign the papers and the escrow can not close at the end of the extension again?
I am in contract with the buyer to sell my condo in San Francisco. The buyer and his agent asked for one week extension since their lender did not release the funds. As we are nearing the end of the extension, the buyer's agent is pressuring my agent and I to sign the escrow papers first before their lender releases the funds and before the buyers sign first.
1 Answer from Attorneys
An escrow cannot close until matching instructions are submitted by both sides, all papers required by the terms of the escrow instructions have been properly signed and submitted, and all other terms of the escrow including deposit of funds have been met. As long as the papers you have been asked to sign meet your intentions in the deal, and do not contain any waivers you do not intend to make, you should not be at any risk (absent criminal conduct or fraud which theoretically could exist in any transaction) by being the first to sign and submit your escrow documents, and you may prevent delay that could mess up the closing.
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