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The sign off is where home buyers or sellers normally meet with a notary and sign the closing documents. This is not necessary for a buyer with a cash offer, but it is required when there’s financing.  Who attends this appointment, and when is it?

Sign off – quick summary

• Normally this takes place 2-3 days before the close of escrow.
• Sellers and buyers are not all at the same table. That can happen in other states, but it’s a different set of customs.
• Present at minimum are the buyers or sellers, and the escrow officer who has a notary license or another notary.
  • Often the buyer agents are there for the buyer sign off, or the listing agents for the seller sign off, but this is not required.
  • In some cases, the lender may also join the buyers at their appointment to explain any questions about the mortgage.
• Principals will be asked to show their ID, sign a notary book, and provide a thumbprint in the notary book.
• It’s really not ideal to bring children to a sign off, but sometimes it cannot be helped, and many title companies have coloring books or some other amusement (but don’t count on it, in these post-COVID years, they may not be as available, so ask if you think you’ll want that)
• How long will it take? For sellers it’s often quick, around 30 minutes. For buyers with 1 loan, many times it is about an hour to sign. For buyers with 2 loans (first and second mortgage), it will take longer. It can take much, much longer if you read every word! If the loan docs get to title with time to spare, you may be able to review them in advance.

There are some variations on how things may play out. If regular work hours are not possible, the title company can arrange for a mobile notary to go the buyers’ or sellers’ home or elsewhere, such as a coffee shop, to do the signing.

If home buyers or sellers are traveling when the need to do a sign off, the documents can be overnighted to where they are and signing can happen with a mobile notary if they are still in the U.S.

If abroad, the signing is much more complicated. In that case, it must be done at a U.S. Embassy or Consulate office, with the appointment obtained well ahead of time.  (It’s tricky enough that I’ve had clients get on a plane to sign here in Santa Clara County instead.)

Cash buyers don’t need to get their signatures notarized and if they are comfortable doing so, may sign  electronically, such as with DocuSign.

Some states have distance signing with a remote notary, but that is not the case in California at this time.

Varied practices around real estate closings and sign offs

Real estate practices vary from state to state and in the case of California, even from one region to the next.  How the settlement or closing appointment goes is one of them.

Some states customarily work with lawyers in their typical sales, and other states utilize escrow services. A quick web search of “attorney states vs escrow states” will pull up ream of results.

California is an escrow state. In northern California, escrow services are handled by the title company involved in the transaction – nearly always. In southern California, there may be separate escrow companies (not the title company).

Many of my east coast friends and relatives have told me that when they close on realty transactions, everyone goes to the same table – buyers, sellers, the attorneys for each and the real estate agents for each.  Not only do they all meet in one room to finalize the deal, but when it’s over, the property transfers title right then. That’s how it works in attorney states.

Not so in Silicon Valley!

Here in northern California, buyers and sellers sign off separately, and almost never are lawyers involved.  The closing papers are signed or sign off happens 2-5 days prior to the deed being recorded and title transferring.  The buyers often have both their real estate agent and perhaps also their lender present to answer any questions.  This final paperwork is most often done at a title company’s office.  Also for the seller, it’s usually at the title company and the agent is present in many cases

What happens on the day of closing, then?

There are two main events that take place on the day that escrow closes and the real estate sale is finalized.

First, the title company gets the deeds recorded with the County of Santa Clara or whichever county is the jurisdiction of the property. This used to be done in person but now it’s managed electronically. When finished, someone at the title company will phone or email the real estate agent and inform them that the sale is completed and confirm that the sale is “on record”, meaning recorded with the county. The agents, in turn, notify the buyer(s) and seller(s).

The second thing that happens is that the new buyers get keys to the home!  This is true even if there is a rent back, since the buyer is now a landlord, even if it’s just for a little while.

Related reading:

Seller rent back after close of escrow: what do you need to know? (this site)

What are typical buyer closing costs in Silicon Valley? (this site)

Beware low HOA reserve accounts (Move2SiliconValley.com, our relo website)