ESCROW SURVIVAL GUIDE - For Homebuyers In Northeast Los Angeles - Part THREE: Managing Deadlines
Once your purchase offer is accepted, the clock starts ticking towards the contractual deadline dates.
It is important to note that the standard California real estate purchase contract counts from the date of acceptance, not the date that an escrow is opened with an escrow company.
For example, let's say your purchase offer was accepted on Saturday, August 1. A thirty day escrow would indicate a closing date of Sunday, August 30, even though the escrow company did not open the file until Monday, August 3. However since the Los Angeles County recorder must be open in order for a closing to happen, your escrow would be set to close Monday, August 31.
In Los Angeles County, California, an escrow is "closed" when all the grant deed and any deeds of trust (mortgages) are recorded at the Los Angeles County Recorder's office. In California, "closing" is not a meeting attended by all parties to the transaction.
Real estate contract deadlines are based on calendar days, not business days.
Even if your escrow is scheduled to close on August 31; if all the contingencies and contractual terms are not meet prior to closing, the escrow cannot close, and stressful negotiations for a contract extension will be necessary.
In the standard California purchase offer, a contingency period of 17 days is the pre-printed default. The parties to the transaction can change that to a different time period by mutual agreeement. This time period is for both the loan contingency and the inspection contingency running simultaneously.
Here's an tip from the Old School. Get a monthly calendar, the pre-computer, paper kind. Write down on the calendar the acceptance date and the scheduled closing date. Then count 17 days from the acceptance date, and write "contingency removal due".
Now look at the calendar, and find one week prior to the contingency removal date. Mark that date "Follow Up", meaning if you arrive at that date and all the inspections have not yet been performed; or the lender has not yet made an appraisal, it is time for us to make some follow up calls and push everything along.
Find one week prior to the scheduled closing date. Mark that date "Follow Up" also. That's the point in the escrow when we will want verify that the lender is ready to issue loan documents, and any repairs or mandatory retrofits on the seller's side are complete.
Why does writing it down on a paper calendar help? I think it's the visual representation of "this is where we are", "this is where we are headed" and "this is how much time we have to get there".
We want to be proactive! We don't want to wait until the deadline has passed to start following up.
And one more thing, at Bob Taylor Properties, in Highland Park, we are always aware of how deeply people's lives can be affected by a move. There are things to pack, pets to transport and kids to comfort. Buyers and sellers can be overwhelmed dealing with movers and utilties and schools and banks.
We work hard to keep your escrow on track and on time, and we always keep all parties fully informed throughout the entire escrow process.
Great idea. I print out a blank calendar just like the examples in your post and put all the critical dates right in the transaction folder. These calendar forms are free from several web sites.
Dates and deadlines are critical. Good agents monitor them like a hawk.
We jsut started using Relay, which comes with your CAR membership. They have these amazing calendars and checklists. You will forget absolutely nothing with that program.
Here's an tip from the Old School.
You know that your idea really works? Sometimes, even better than Outlook or email. :)
@Brian. Hell, yes, I know it works.
And I think for many people it works better than Outlook or other computer generated programs because physically marking dates on a calendar connects with a more primal, elemental part of the brain. Think: Marking lines and symbols on the wall of a cave. :-)
Plus the calendar itself presents a more commanding visual representation than a computer screen.
All that said, I'll probably give Relay a whirl since ~that~ part of my brain needs sustenance, too. :-)
It has taken me years to let go of my "appointment calendar", but I can't let go of the hard copy "closing schedule" calendar. Its so nice to have a quick record of the months closings, isn't it?