Post-Closing Procedures and Recording

After closing, the title company records the deed and mortgage (or deed of trust) with the county recorder's office. Recording establishes the public record of ownership change and mortgage lien. Recording priority is determined by the order of recording—the first document recorded has priority over later-recorded documents. This is why the title company records the deed and mortgage simultaneously (or the mortgage immediately after the deed). In race-notice states, an unrecorded interest is void against a subsequent bona fide purchaser who records first. Recording fees vary by jurisdiction ($25-$500 depending on document length and county). The title company typically handles recording and provides the buyer with recorded copies once returned from the recorder's office (2-8 weeks depending on jurisdiction).

The title commitment becomes a title policy only after closing and recording. The title company issues the final owner's and lender's policies after confirming: the deed is recorded, the mortgage is recorded, all Schedule B-I requirements are satisfied, and all closing conditions are met. The final policy may take 30-90 days to issue. Review the final policy when received to confirm: (1) the policy amount matches the purchase price (owner's) and loan amount (lender's), (2) exceptions match the approved title commitment, (3) no new exceptions were added without authorization, and (4) the legal description is correct. Store the title policy permanently—it protects you as long as you own the property and may be needed for future sales, refinances, or claims.

Post-closing property transition requires immediate action on several fronts. Tenant notification: send ownership change letters with new management contact information and rent payment instructions (required in most states within 30 days). Utility transfers: contact all utility providers to transfer accounts to the new owner. Insurance activation: confirm the new owner's policy is in effect as of the closing date. Vendor contracts: review all existing service contracts (landscaping, pest control, elevator, fire alarm) and decide whether to continue, renegotiate, or terminate. Security deposits: establish a separate trust account for tenant security deposits (required by law in most states). Bank accounts: open property-specific bank accounts for income and expense management. Property management: if using third-party management, execute the management agreement and transition tenant files, maintenance records, and vendor relationships.