Congrats on Closing! Now, How Will You Get Your Deed?

Closing is the last step before you have the keys to your new home in hand, and your deed is on its way.

The all-important deed is a legal instrument (document) that shows the transfer of property ownership from the seller, over to you, the buyer. This document confirms your ownership status for the property you buy. The party selling the home (whether that’s a human being, an LLC, a family trust, or another entity) must sign the deed. And the buyer, too, might need to sign the deed.

The deed is the paper that represents a title transfer. So it’s a key item in the vast stack of loan documents and related papers you’ll review on the big day.

What’s the Preliminary Process?

Most buyers want a title company working behind the scenes to process their deed transfers safely.

So, in the runup to closing, they select a title firm to run a title search on the property. A professional search ensures that the title to the home is free and clear, so it’s legally ready for the seller to transfer. Loan or real estate agents can recommend title companies in your area.

You’ll tell the title agent your vesting preference if you are buying your new home together with a co-owner.

Co-owners must be ready to say how they want to be named on the deed. They may choose to vest homeownership as joint tenants with survivorship, tenants in common, tenants by the entireties, or in another form that their particular state allows.  

Then the title company goes through a standard series of steps to transfer your deed from the seller to you. It examines the title history to be sure no title defects or unresolved claims block the seller from actually being able to pass the deed to a buyer. Any outstanding debts and claims recorded on the home must be resolved with the government agencies or the businesses that filed them against the title.

Then, What Happens at Closing?

Closing is the formal settlement between parties with a stake in the deed. Leading up to this, you’ll go to your future home for your final walk-through. This is crucial. Examine any promised repairs or modifications. Make sure no substantial changes impacted the property since the inspection.

Then you’ll attend the closing. And there:

• The seller and buyer acknowledge their agreed-upon promises and that they’re all resolved.

• Settlement and real estate agents take their agreed-upon fees.

• The buyer signs affidavits to attest to the accuracy of legally important statements and agreements.

The settlement agent from the title or escrow firm can then proceed to have the key documents recorded. The settlement agent will also disburse payments to the seller that are waiting in escrow. As the buyer, you will be asked to sign checks, although you’ve likely already wired the bulk of the funds in advance.

You’ll get to see your deed, in its original form, as ownership is being signed over to you. The title company will have a notary or attorney in the room on closing day. The settlement agent will observe your signatures, and make copies that parties will take away from the table.

The closing process happens in the office of the title company or your mortgage or escrow company, or in the more familiar environment of your real estate agent’s office. Every paper will be described to you, the buyer, as you sign each item. This usually keeps everyone at the table busy for an hour to two hours. When this session concludes, your wrist will be worn out. But what a feeling, to have the keys to the home in your hands!

When Will the Deed Be in My Hands?

Check your closing documents for a preliminary copy of your soon-to-be-recorded deed. This document enables you as the buyer to prove your purchase to companies, agencies, school districts etc. that need to know.

At closing, the title agent submitted your new deed to the county Recorder of Deeds so it’s filed as a publicly recorded document. Meanwhile, the title company has your details and your new home address. So the company can and will send you your deed after recording. Your state will have a time limit by which they must send your stamped deed off to you.

Now, watch your mail! The deed should arrive a few days or weeks after your closing date.

Now that we’ve entered the era of eRecording, a deed can sometimes become a public record within hours.

Feel like you’re waiting too long? Call the title company. Check to be sure the deed was properly filed with your county, and that it’s on the way to you, stamped by the county recorder.

If you have any trouble at this stage, contact your mortgage consultant. Your home is the lender’s collateral. Thus, your lender also wants to be sure your new deed is timely recorded.

PS: You can ignore the direct mail from companies that want you to pay them for a copy of your deed. If you’ve misplaced your deed, contact your county Recorder of Deeds for a certified copy.

But What If Your New Home’s in a Deed of Trust State?

In some states, the mortgage is collateralized by a deed of trust. In this type of closing, the deed of trust may be in play rather than mortgage papers. What’s this about?

A third party takes the home’s deed. Instead of recording the home’s deed on your behalf, the county will record the deed of trust. It’s kept in escrow for the entire time a balance remains for you to repay.

Throughout that time, the lender may keep the property deed if you fail to pay — foreclosing without having to go through a court-supervised process. You can look up the rules of this (lender-friendly) process online, in your state’s current laws.

Now, what does this mean at closing? You as a buyer must sign the deed of trust. Your signing will be witnessed and notarized at closing. If you’re using a bank or credit union, you’ll get a long-form deed of trust. If not, check for the streamlined short-form deed of trust in your state. Then record the short form with the master deed of trust, according to your new home county’s procedures. Freddie Mac provides samples. Learn more with us about the short-form deed of trust.

No worries that you don’t have the true deed. You’ll get it later, through reconveyance. And buyers in deed of trust states are still called homeowners, just as mortgage borrowers are!

Reminder to our readers: This article is intended as general information to orient an aspiring deed seeker to the process ahead. It is not legal or financial advice.