Legal Question in Real Estate Law in California

Re: Close of Escrow

Normally escrow closes when the deed is recorded and the proceeds distributed. Please tell me the rest of the story.

Re: Close of Escrow

Normally escrow closes when the deed is recorded and the proceeds distributed. Please tell me the rest of the story.

Re: Close of Escrow

Onwership transfers when the deed is delivered to the Buyer, or to the Buyer's agent, i.e. the escrow company. When the deed is placed in escrow, the company holds it as agent for the Seller until all of the conditions of escrow are met. Once they are med, the escrow company then holds the deed as agent for the buyer and title has transfered. Recording of the deed in CA is required to prevent a bonafide purchaser or encumbrancer for value from obtaining an interest in the real estate superior to that of the Buyer.

If that seems confusing, it should. When we teach the concepts to lawyers in law school, they have trouble understanding this as well.

Re: Close of Escrow

Title passes when the properly-filled-in deed is delivered by the grantor to the grantee, either by actual physical delivery or by constructive delivery, e.g. to the grantee's agent, which could be the escrow officer. Recording is an important formality, of course, but that's not when title passes!