The moment of truth has arrived. You are finally(!) signing documents to help complete the home purchase. What a great achievement. (I’m doing a happy dance both for every successful home transaction and in support of each satisfied client!)
Let’s be clear: This is not the same as closing, or “settlement,” which typically takes place a day later. That final step is when escrow records the deed, mortgage papers and other home-purchase documents with the county. (Recording numbers can be found on the King County Recorders site. The county will mail you the deed, generally in about a month.)
You own the home once the documents are recorded and keys to the home are handed over. There are some scenarios where both parties agree in writing to have the seller live in the home a few days (or even weeks) later or the buyer moves in earlier to smooth out their living situation, but it is highly recommended you avoid any such arrangements as they can lead to messy legal issues involving possession and property damage – especially if a snag develops before completing the transaction.
Just before closing, you – the buyer – are asked to visit the escrow offices to kick off this near-final step of the home-purchase process. (Escrow can actually conduct the signing process anywhere and sometimes accommodates people who are, for example, extremely busy or immobile.) Escrow may be able to complete the signing (in the morning) and record the documents (in the afternoon) to get you in the house the same day.
You and any co-buyer on the purchase documents will need to show escrow an acceptable form of identification. This can be a current driver’s license, valid passport, State of Washington Department of Licensing ID card or active military ID. The name on your ID must match the name on all signing documents; that includes the names of people who are newly married or recently divorced.
In addition, you should bring proof of homeowners insurance on the new property, a copy of the settlement statement, any documents that your mortgage lender asked you to bring to signing, and a receipt to prove you sent the final payment to escrow. It’s always a good idea to be armed with supporting documentation in case there are hiccups with paperwork. (Also bring your bank account details should escrow find you overpaid and are to receive a refund electronically.)
Your co-buyer, usually a spouse, is required to sign all key documents even if this person is not part of the mortgage approval. Married couples in the process of divorce or separation will require additional documentation from a real estate attorney to ensure everyone – and everything – is on the up and up.
There is a lot of paperwork to examine, understand and sign. You’ll pen your name anywhere from 10-30 times on legal disclosures, tax records, mortgage papers and more. The process can take 1-2 hours – sometimes longer for more complicated transactions where multiple parties are involved. It’s wise not to schedule appointments soon after signing, just in case the process needs more time.
In addition to any co-buyers and your escrow representative, there is a chance you will be joined at signing by the title officer, a notary public, your real estate attorney and your real estate broker if you wish him/her to attend. Don’t hesitate to take the signing process slowly to allow your escrow rep and attorney explain what you are signing, and be sure you understand how taxes, homeowners association dues and homeowners insurance statements will work if escrow is servicing those payments.
It’s less likely your mortgage lender or seller representatives will be present. Sellers usually sign all documents in advance of your visit to escrow.
You’ll receive copies of everything you signed, including the disclosure statement, which should be retained for tax purposes the following year.
With all documents signed by both parties, escrow will move to record the transaction with the county and begin dispersing funds. The seller will receive payment by wire transfer to his/her bank account, and the buyer typically receives a check or electronically for any overpayment. Firms representing real estate brokers working for both sides of the transaction will also receive their commissions; brokers obtain their portion from their firms.
If all goes to plan, you will leave escrow with an immediate need for a file cabinet to hold the stack of freshly signed documents, and you’ll receive instructions on when to get your keys and take possession of the home.