The Escrow Hub Blog

To Special Record or Not Special Record?

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The process of purchasing — or selling — a piece of real estate is complex. There are many steps involved — especially when the purchasing party is making use of financing. During this process, an escrow company plays the role of an independent third party. They collect all of the documents from the seller and buyer and verifies the veracity of those documents. The escrow company also assumes temporary responsibility for the funds that are eventually paid to the seller during closing. To learn more about Escrow Hub’s escrow services in Los Angeles, reach out to us today!

Recording the Deed of Trust

One of the steps in a real estate transaction in California involves the deed of trust. This is a legal document that proves the financing party — usually the mortgage lender — has an interest in the property while the new owner pays off the mortgage. This document is important because it enables the financing party to appropriate the property in the event the owner can’t pay the mortgage anymore.

During a property transaction, a deed of trust comes into play once the financing party has received and verified all of the loan documents and has wired the funds to the escrow company. At that point, the deed of trust has to be recorded with the county recorder. In some counties, this is done on the same day as the wire is received. This process is referred to as “special recording.”. If you don’t special record, the recording of the deed occurs on the morning of the following workday.

Once the escrow company confirms the recording of the deed, it will release the funds to the seller and other interested parties. The buyer can then take possession of the property on the date specified in the sale contract. In California, this is often three days after recording.

Why Opt for Special Recording?

The answer is quite simple. It can — in certain cases — allow you to take possession of the property on the same day. This can be useful in the event you need to relocate quickly — or simply want to move into your new home right away.

Special recording can also be helpful as a negotiation point. Some sellers are in a hurry to sell their properties. Logically, they want to receive their money as soon as possible. Since special recording requires at least one of the principals in the transaction — usually the seller — to go to the county recorder’s office and file the paperwork, being prepared to do that so the seller will receive his or her funds sooner can be a way to get your offer accepted.

If there’s no hurry for the seller to be paid or for you to take possession, it’s often advisable to follow the regular recording process. It’s less stressful and will provide you with more time to make sure all of the documentation for the county recorder is in order.

Note that not every county in California allows special recording. Consequently, not all escrow companies are equipped to accommodate this type of request. For more information, please Escrow Hub at your earliest convenience.

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