Legal Question in Real Estate Law in California

The transfer documents are not usually drafted and signed until after the buyers funds are received.

I disagree with Mr. White.

Look at your escrow instructions. You have a duty as a seller to deposit a deed that is signed and notarized that deeds the property to the buyer. Escrow cannot close unless you fulfill your conditions. The escrow company holds the documents in trust, and does not record the deed until the buyer has fulfilled their conditions and deposited the purchase price. A deed stolen from an escrow file does not pass valid legal title, and can be set aside, so I think you are worrying about nothing.

You should have an attorney review this. I do not see why you would sign a grant deed to the escrow company. The grand deed should be executed in the favor of the buyer no the escrow company unless I am missing something. Would need to see the documents.

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I agree with Mr. Roach -- assuming that the grant deed you're being asked to sign before a notary grants title to the buyer, of course (and not to the escrow holder). This seems like the normal pre-closing paperwork flow. Further, in case of doubt, you could ask the escrow company (they probably have a law department or at least an experienced escrow officer) to explain the whole process.