After weeks of inspections, negotiations, and paperwork, the close of escrow is finally within your sights. This is the moment when ownership officially transfers, and you walk away with your proceeds.But for many sellers, the final steps remain a slight mystery, and that uncertainty can make an already stressful process feel even more tense. Here’s what actually happens during the escrow closing process for sellers, and what you can do to make sure everything goes smoothly.
What Is Close of Escrow?
Escrow is nothing more than an official holding period. From the moment the buyer’s offer is accepted, a neutral third party (the escrow company) holds funds and documents until both sides have met their obligations. The close of escrow is the point when all conditions have been satisfied, the paperwork is signed, and the sale is officially recorded.It is, essentially, the finishing line. Once escrow closes, the house is no longer yours. The buyer takes possession, and you receive payment.
What Happens at Close of Escrow?
The final stretch involves a few key steps.First, both parties sign the closing documents. For sellers, this typically includes the deed transfer, settlement statement, and any disclosures required by your state. You’ll review the numbers one last time to confirm everything matches what you agreed to.
Next, funds transfer. The buyer’s lender wires the loan amount to escrow, and the escrow company distributes funds accordingly – paying off your existing mortgage, covering closing costs, and sending you the remaining balance.
Finally, the sale is recorded with the county. This is the legal moment when ownership changes hands. Until the deed is recorded, the transaction isn’t complete.
When Does Escrow Officially Close?
This is where it gets a little technical. Signing the documents doesn’t mean escrow has closed. The transaction is only final once the deed is recorded with the county recorder’s office.In most cases, recording happens the same day as signing or the following business day. But delays can occur, especially if documents are submitted late in the afternoon or if there’s a backlog at the recorder’s office.
You will know escrow has officially closed when your agent or escrow officer confirms the recording. At that point, the sale is done.
What Do Sellers Need to Do Before the Close of Escrow?
A few loose ends need tying up before closing day.First, the buyer will conduct a final walkthrough, usually the day before or the morning of closing. This is their chance to confirm the property is in the agreed condition and that nothing has been removed or damaged. Make sure the home is empty, clean, and exactly as expected.
You will also need to cancel utilities and home services, or arrange to transfer them to the buyer. Have all keys, garage remotes, and access codes ready to hand over at closing.
Finally, confirm that any documents you’re required to sign are accurate. Review the settlement statement carefully – errors do happen, and catching them early avoids delays.
When Do Sellers Get Paid After Close of Escrow?
Most sellers receive their funds the same day escrow closes or within 24 hours. If you’ve arranged a wire transfer, the money typically hits your account by the end of the business day. Paper checks may take a day or two longer.What can delay payment? Outstanding liens, last-minute disputes, or paperwork errors can all hold things up. This is why it pays to stay organized and responsive throughout the process.
Common Close of Escrow Delays (and How to Avoid Them)
Even at this late stage, things can stall. The most common culprits are:- Paperwork issues. Missing signatures, incorrect names, or documents that don’t match can send everything back for revision.
- Funding delays. If the buyer’s lender is slow to wire funds, closing gets pushed.
- Title problems. Unexpected liens or recording errors can surface at the last minute.
How Networth Builders Supports Sellers Through Close of Escrow
The final stretch of a home sale should feel like relief. At Networth Builders, we manage timelines, coordinate with escrow and title, and keep you informed every step of the way. If something unexpected comes up, we handle it, so you can focus on what comes next.Have questions about the escrow closing process for sellers? We’re here to help. Schedule a free consultation below, and let’s get you to closing day without the headaches.