Does this mean that the seller signs the deed but it is put in escrow with someone like a title company and doesn’t get recorded until an option is executed? Who keeps the actual deed while waiting for the option to be executed? Does the title company have a special “hold file” or something for these? Just a little confused?
Howdy Indy:
You are right. The escrow agent (title company or attorney or anyone that you both trust) will hold the deed until a certain event happens. I have given a deed in leu of foreclosure as security for loans before. Probably will not again. Too expensive to get drawn up on that deal that time.
Title company will just keep the file open perhaps and not send to the vault or basement for permeant filing. I am not exactly sure where it will be stored, but it will be save. Be sure to keep the contact info GF file # etc so they will be able to find it easier.
The seller will usually retain title to the property and the original deed will be held in escrow. There is no actual title to real estate like a car. The deed transfers ownership and you are vested with title as long as certain things are done properly with the deed. Just getting a deed does not give you title for instance is the seller is not the title holder. It can be confusing to say the least. This is why attorneys are needed sometimes to sort it all out for all the parties.
Hope this helps explain it better and that I have not confused you more.
LOL