Thank you both and now that leaves me with another question. I was a title recorder years ago and can

Question

remember that one of my duties in reviewing the documents to record was to make sure that the Grant Deed was notarized on the same day or before the signature execution of the buyers on the Deed of Trust. That was the procedure the escrow officers exercised and they did so consistently. My title officer and the county recorder was also a stickler on it as well. When I presented them for recording the execution of the signatures for the GD and the DT were done just like the concurrent recording order of the Grant Deed first and then the Deed of Trust. (First the sellers signed and then the borrowers) Is that a requirement for the insurance policy, a requirement for lenders, a county clerk/recorder requirement or just a professional preference?

It makes sense that a signing should be done that way in a sale as a buyer/borrower should have the assurance of the GD conveyance as well as making sure the vesting and property description is the same on both documents before they sign all of the loan package, including the Note and Deed of Trust. I looked back at my land transactions as well and they have been done the exact same way so does someone know the real reason for this practiced procedure?

Answer 1

The deed of trust contains a warranty of title, warranting that the buyer/borrower owns the property. In order for that warrant to be true, the grant deed from the seller to the buyer must be signed and recorded before the trust deed. Plus, if the trust deed is signed and recorded first then there is a break in the "chain of title" since the person signing the trust deed does not yet have title to the property.

edit:

cyoung is correct in most circumstances, if you focus only on the date of signature, which is why I referred to the date on which the document was signed AND recorded. The recording sequence always makes a significant difference. There are also circumstances in which the signature date can make a difference, so I would not ignore it.

Answer 2

t doesn't matter which is signed 1st and they do not have to be on the same day. What if the buyers or sellers lived out of state and loan docs had to be overnighted to them. The other party can sign before or after the other party. there is no statute or clause that states ant document has to be signed in any certain order or one party has to sign before another