If any credits or price reductions are agreed to, escrow will create an amendment to the escrow instructions reflecting that – the lender must also be aware of price reductions to make sure the loan documents are correct. Up to 5 days prior to close, the Buyer has a right to do a final walk through. This is a brief inspection of the property to verify it’s in the essentially the same condition it was when the offer was made. If the Seller agreed to make any repairs you’ll want to verify they have been completed (you should also ask for receipts). The walk through is not a contingency of the sale.
If you are getting a loan, about a week prior to close, the lender will send the loan documents to escrow where they can be signed and notarized. Once they are signed they go to underwriting for review which can take a day or two. When you are set to close, you wire the balance of your down payment to escrow (they will give you the exact figure and wiring instructions). The bank wires their portion to escrow usually 1 business day prior to recording. Once the funds are in place the sale usually records at the county recorders office the next business day. Depending on what order the Title company is in that day, you can get confirmation of the recording at 9 am or as late as 5 pm. Once we get confirmation of the recording, you are officially the new owner and you receive keys. In some circumstances, Sellers negotiate to lease back the property from the Buyer for a period of time after the close. In that event, the Buyer becomes a landlord/owner and the Seller becomes a lessee. The Buyer would be smart to stipulate in the contracts that a security deposit be held from the Seller’s funds to protect their interests.
At times there can be unexpected delays so keep that in mind when scheduling movers. You’ll need to contact the various utility companies ahead of time and let them know there is a change of ownership and the date you want to start service in your name.
Those contact numbers are:
Los Angeles Department of Water and Power
Toll Free 1-800-DIAL-DWP (1-800-342-5397)