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Old 12-11-2012, 08:09 PM
 
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It's interesting to hear the procedures in other states. In Michigan, a closing is just that: the deal is closed; proceeds are disbursed; and an executed deed is delivered to and accepted by the purchaser. When the deed is recorded has no bearing upon the date the ownership transfers.

Hopefully, the world won't end on December 21st, so you should be okay by December 26.
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Old 12-11-2012, 08:22 PM
Status: "Black Coffee!" (set 29 days ago)
 
Location: Cary, NC
30,084 posts, read 52,777,204 times
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Quote:
Originally Posted by AHomeSeller View Post
Maybe you are right but it seems strange to lose ownership of the house before the County records the deed on the next business day and the profits from the house goes into my bank account. (Virginia law says that the recording of the deed does not take place until the next business day which in this case is four days after the closing.)

Any VA experts?
I think you should ask the question in the Virginia CD Forum to get response from folks with Virginia background and experience.
From some quick GOOGling, it appears that ownership conveys at the settlement table.

And that is different from North Carolina practice when using the NCAR Standard Offer to Purchase and Contract, where recording of the deed is required to accomplish closing, and ownership conveys only once the deed is recorded.
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Old 12-12-2012, 05:24 AM
 
Location: MID ATLANTIC
7,384 posts, read 16,784,317 times
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Hopefully, your title company is approved for electronic sales. They can close the 21st at 3:30PM and record up until 4 PM. Once they have the recording receipt they can disburse. However, most title companies have a review process, checking for errors before the trip to the courthouse.

It is my understanding, if the funds are at the table, the HUD is signed, the sale has occurred. Disbursement of the funds is not always (and rarely) possible the same day as closing. Back-to-back closings have dealt with this situation for a long time.........but as electronic means speed up the process, I imagine speedy disbursement is a matter of time. Rarely, we do see some counties that do hold the keys for disbursement and those counties tend to be rural (fewer electronic filers).
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Old 12-12-2012, 07:05 AM
Status: "awaiting spring" (set 28 days ago)
 
Location: under the beautiful Carolina blue
14,731 posts, read 22,381,841 times
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In NY, at least on Long Island, ownership is transferred at closing, not when the deed is recorded. It can take weeks to record the deed there - when we closed in the 1990s it took MONTHS!!!

Here in NC ownership transfers when the deed is recorded, and I know my attorney made sure there was time to do that on the day of signing. Technically you are not supposed to get the keys to the house until the deed is recorded, but we got them at the signing.

You should really talk to your agent or attorney but to be honest I would not want to close on a Friday when the next business day isn't till 5 days later. I'll never close on a Friday again anyway but that's another story!
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Old 12-12-2012, 07:14 AM
 
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In VA by law there is no recording of the deed until the next business day after closing. So in this case with my closing date being 12/21/12 the next business day is 12/26/12. I can't get a straight answer from my agent regarding this issue.

Here is another wild card. There is a good chance that I will be charged interest on my home until the 26th even though I my closing is 12/21, because the bank still consider me the owner until the deed is recorded. But I will have to pay rent as part of my rent back effective 12/21. Cut and paste link below for more information on this rip off.

http://forums.redfin.com/t5/Seattle/...ng/td-p/131524

Last edited by AHomeSeller; 12-12-2012 at 07:21 AM.. Reason: no links from new posters
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Old 12-14-2012, 02:21 PM
 
7,282 posts, read 7,981,723 times
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Quote:
Originally Posted by FalconheadWest View Post
I think Rakin is misspeaking. You can still FUND on the 21st, even if you sign at 4pm. You just might not get your proceeds then. If the loan FUNDS from the buyer, you are no longer the owner, in Texas. Ownership doesn't pass at recording, but at funding of the buyer's loan.

If your buyer's loan does not fund on the 21st, you will still be the owner and still owe taxes, insurance, etc on the property until the buyer's loan funds.
I believe Rakin is correct. If the funds aren't good but recording takes place, it becomes a civil matter for litigation, ownership has passed until that matter is corrected. True, everything would back out and eventually revert (hopefully) but you'd have a real mess on your hands if the unimaginable happened in the interim.

In many states, the transfer of property by funding does not eliminate or even reduce the liability of the previous owner until the transfer is recorded. There is a huge question hanging out there if the buyer takes possession before recording and while things might work out ok, it could take litigation to fix them.

Take California for example. If between the time of funding and recording, the previous owner or buyer becomes a tenant, all the protections for tenants in that state apply. If it is San Francisco, you are up a creek with no paddle because should things go to eviction, you the continuing owner are required by local laws/ordinances required to pay an amount for moving expenses. For that reason alone, allowing a buyer to take possession before recording can lead to a small disaster.

One route to avoid all this is to require the seller to vacate or the buyer to postpone possession until recording. That is why they make hotels.
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Old 12-14-2012, 02:34 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 12,353,439 times
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Quote:
Originally Posted by AHomeSeller View Post
Our Virginia home has sold but for some reason they scheduled the closing date on Friday December 21st. I will be signing my name multiple times at the actual closing late in the afternoon. After that I am doing a thirty day rent back while looking for a new home to rent.

In Virginia they won't pay me for the money I am making on the sale of my home until the next business day. Trouble is the County Offices are closed on Monday December 24th and Tuesday December 25th (a two day Christmas Holiday for those hard working County Employees!)

I have a question for Virginia realestate experts:

Am I the actual owner of the house until December 21st, the date of the closing. Or until Wednesday October 26th, the day the deed is recorded at the County Offices and I am paid for my home sale profit?
Your agent should have already given you this answer. Also the title company can answer it for you.
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Old 12-15-2012, 08:21 AM
 
Location: Austin
6,906 posts, read 16,138,263 times
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Quote:
Originally Posted by Mack Knife View Post
I believe Rakin is correct. If the funds aren't good but recording takes place, it becomes a civil matter for litigation, ownership has passed until that matter is corrected. True, everything would back out and eventually revert (hopefully) but you'd have a real mess on your hands if the unimaginable happened in the interim.

...

One route to avoid all this is to require the seller to vacate or the buyer to postpone possession until recording. That is why they make hotels.
Sorry, but you're wrong when it comes to Texas closings. Recordings do not take place immediately. Texas regards the funding as change in possession. Recording can be weeks later, depending on the county. As soon as the lender gives a funding number to the title company, ownership changes hands. If it's a CASH deal, ownership changes hands immediately after the last person signs the last document. We do NOT wait for some state worker to record a piece of paper at their leisure. Too many Friday closings wouldn't happen properly if that were the case.
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Old 12-18-2012, 12:04 PM
 
Location: Needham, MA
6,206 posts, read 8,526,793 times
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I love these threads! Always so interesting to hear the different ways things are done across the country.

Here in MA the closing is performed by an attorney and ownership does not change hands until the deed is recorded at the registry of deeds. Deeds are recorded at the county level here (not sure why counties are largley meaningless in this state otherwise). Some registries you have to physically bring the documents to in order to record them, but many registries in MA have converted to electronic recording. The attorney simply scans the docs and uploads them to a website. In those situations, the deed goes on record about an hour after closing. Attorneys technically cannot disburse funds until the deed goes on record.

If in VA ownership does not change until the deed is recorded why are you being asked to pay rent prior to that? Sounds like whoever wrote up your contract didn't think it all the way through.
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Old 12-18-2012, 01:34 PM
 
Location: NC
5,799 posts, read 6,327,901 times
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Why not try to close on the 20th instead?



Perhaps someone is thinking why bother if the Mayan calendar ending is in play. Then there would be no need for closing.
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