After the loan has been finalized, the documents signed and recorded, and the financial settlement completed, there are still several steps which must be accomplished to complete the transaction.

Your existing loan is being paid in full from the escrow. Your lender is required by law to issue a full reconveyance (release) of their loan. As soon as the deed of reconveyance removing the previous Deed of Trust is received, it should be recorded and the original returned to you. This may take several weeks. However, you need not be concerned by this delay since it is normal.

What happens to funds held in escrow?

In some cases the escrow holder will be instructed to hold funds in escrow to pay off obligations which may not be completed until after escrow closes. An example might be a set-aside of funds to correct a structural problem, remodeling or termite repair work. Upon completion of the project and receipt of the proper documentation and releases, the escrow officer will disburse the reserved funds.

Helpful Reminders

• If you wish to transfer funds to another escrow or wire transfer funds, arrangements must be made in advance with the escrow officer.
• In the event that you wish to use a Power of Attorney, arrangements must be made one to two weeks in advance with the escrow officer, and the Power of Attorney must be approved by the buyer's lender and escrow. These arrangements should be made as early as possible in the transaction.
• Please bring appropriate identification (for example, a valid driver's license or passport) with you to the title company, so that your identity can be verified by the notary public.
• Should the funds deposited in escrow be insufficient for closing, you will need to bring a cashier's check or certified check to the title company for the remainder of the purchase price. Either type of check should be from a California bank or savings and loan and should be issued in the exact amount of the balance due. The amount of the balance may be obtained by phoning the escrow officer prior to signing the papers. The check should be made payable to your title company.