11/17/2022
Who you work with matters! Use knowledgeable realtors to protect you and your property/money!
Here's the latest - an attempt to "close in escrow" on Florida properties.
Buyer agrees to purchase and seller agrees to sell, but under terms of contract buyer requires an executed copy of the Deed to be provided to them, then they have 48 hours to "fund" the transaction. This is problematic for many reasons for Florida properties.
A) In Florida, we do not "close in escrow". We are what is commonly known as a "table funding" state. All funds necessary to consummate the transaction (from buyer, lender, etc.) MUST be presented prior to the delivery or recording of documents. Lenders making loans in this state must come to the table with an unconditional commitment to fund so long as the requirements specifically noted in their closing instructions have been met. Buyers must provide funds to consummate their purchase PRIOR to receipt of the seller's executed deed.
B. Per Florida statutes, in order to be a valid conveyance of real property, a deed must be signed by the seller in the presence of two subscribing witnesses and delivered to buyer. That's it. That's all. Recording the deed is necessary only to provide public notice of the conveyance. Notarization is only required because the recording statute requires it. Title Insurance requires that the instruments creating the estate being insured (deed, mortgage) be recorded in the Public Records of the county where the property is located. In order to meet all of those standards, we typically see deeds executed, witnessed, and notarized, then recorded. BUT - a deed signed and witnessed and delivered is a valid, enforceable, conveyance of the real property.
C) In the age of electronic recording, providing an executed copy of the validly signed, witnessed, and notarized deed to a buyer most certainly allows them the opportunity to place that instrument of record and change the ownership of the property for which the seller has not yet been paid.
Review your contracts carefully. If your buyer requires the above (usually under "additional terms") you are placing your seller at risk of loss, and asking your title folks to release documents they ought not release.
Please know that we will not deliver an executed deed to a buyer until and unless the seller has been paid or funds are in escrow to pay the seller. We certainly will not record nor issue a policy of title insurance absent the full and complete financial consummation of the transaction we are being asked to insure.
