In a typical California residential real estate transaction, when does escrow officially 'close'?
Correct Answer
B) When all conditions are met, documents are recorded, and funds are disbursed
In California, escrow officially closes when all conditions of the escrow instructions have been met, the deed and deed of trust are recorded at the county recorder's office, and the escrow officer disburses all funds to the appropriate parties. Recording of the deed is the key event that marks the official closing in California.
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- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
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- → On a settlement statement, an item increases the buyer's amount due at closing. How is that item characterized?
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Previous Question
A California seller is paying a 6% total commission on a home that sold for $500,000. The listing agreement specifies a 60/40 split between the listing brokerage and the buyer's brokerage. How much commission does the buyer's brokerage receive?
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A foreign investor (non-U.S. person) sells a California rental property for $800,000. The property carries a mortgage balance of $600,000. The escrow officer calculates that the combined federal FIRPTA withholding (15%) and California state withholding (3.33%) total approximately $146,400, which exceeds the seller's net equity of $200,000 after paying off the mortgage. What is the most appropriate course of action?