Often times this section of the contract is forgotten or overlooked, simply because it seems like a no-brainer. You sign your docs and get your keys on this date, right?
Not so fast… you will actually sign your loan documents at least 3 days prior to the close of escrow if you’re obtaining a loan. If you’re purchasing with cash you may be signing your documents that morning, but more than likely you will be signing a day or two before.
If you’ve closed on a home in another state, you’re probably used to everyone sitting down at a ‘closing table’, signing docs, shaking hands, and exchanging keys. In Arizona, the close of escrow is actually defined as the recordation of the deed at the appropriate county recorder’s office. In order for the deed to be released for recording, all funds due must be at the title company and the settlement statement must balance. With a loan, most lenders have wire cut off times of 10 or 11 am. Meaning that if your loan docs aren’t signed and delivered to your lender by at least the day before closing, your loan probably won’t fund that day and you won’t receive your keys. Always be sure that you’re signing your loan documents at least 3 days prior to the close of escrow date shown on line 16 of the contract, otherwise the seller could issue a Cure Period Notice, see lines 68 and 69.
The contract specifically states, “Buyer and Seller shall comply with all terms and conditions of this Contract, execute and deliver to Escrow Company all closing documents, and perform all other acts necessary in sufficient time to allow COE (close of escrow) to occur on…” This sets the timeline for the rest of the escrow period. There will be items due so many days after contract acceptance and also items due so many days before the close of escrow. Be sure to make use of the Critical Dates Checklist to ensure all timelines are met.