Signature of Warranty Deed Before Closing Not Required

Question: We are scheduled to close on the sale of our home in three weeks. The escrowi company handling the transaction has sent us paperwork for signing, including a warranty deed to the buyers. We are concerned about signing a warranty deed to our home three weeks prior to closing, but the escrow company says that this warranty deed will not be recorded until closing and, if the sale does not close, this warranty deed will be destroyed. Should we sign this warranty deed now?

Answer: In order to timely close a transaction, much of the paperwork for both the seller and the buyer is typically signed at the escrow company before the actual day of closing. If you have concerns about signing this warranty deed now, however, you should contact the escrow company and, if you tell the escrow company that you approve of the form of this warranty deed, the escrow company should permit you to sign this warranty deed at the time of closing. Note: In many states, especially back East, the tradition has been for the seller and the buyer to sit around a table at the same time for “closing” of the transaction. Even in those states, however, the practice now is for the seller and the buyer to sign the documents before the actual date of closing.

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