Going on record
Going on record. You hear that a lot if you work in a real estate law firm in Massachusetts. But it is an important concept, and should be something you should keep in mind when scheduling your closing. I’m posting this now because people read my prior post on Closing Dates and naturally asked the question, “What about picking a time of day to close?”
I always try to schedule my closings — no matter if I represent the buyer or seller — for the morning, if possible. I do this because I want to allow the most time to get the “closing package” on record at the appropriate Registry of Deeds. The closing package consists of the deed, mortgage(s), and other documents necessary to transfer title from the seller to the buyer. The closing becomes official once these documents are recorded (or filed in some instances) at the Registry.
The closing package can only go on record once the documents have been signed by the parties (including all of the various documents sent by the lender) and the bank attorney has received all of the funds from the borrower and the lender. Since bank attorneys need good, verifiable funds, they require that the borrower bring a certified check for the amount required at closing, and lenders usually wire funds directly to the attorney’s account (borrowers can also wire if they choose to do so).
The closing package is hand delivered to the appropriate Registry of Deeds, usually by private courier. Sometimes, closings occur at the Registry of Deeds (but I’ll devote another post to why this has potential to be problematic). Law firms have title examiners on hand at the Registry who do a necessary title run down of the property and then put the property on record.
If the Registry is crowded (this happens toward the end of the month) or if the closing is late in the day, it can be difficult to get the closing package on record before the Registry closes. Also, if the mortgage lender is late in getting funds to the bank attorney, the closing package has to sit at the Registry until the funds are received into the attorney’s account, which sometimes happens too late in the day to make it on record until the next morning.
Why does getting on record matter? Some sellers don’t give keys until the package is on record. While this is the exception rather than the rule, it can hold up a buyer who has scheduled movers for that afternoon. Also, the seller cannot get his or her check until the closing package is on record.
That’s why the afternoon of a morning closing is usually spent asking “are we on record yet?” The seller wants to get the sale proceeds and the bank attorney wants to close the file!