Closing Overview for Cash Sales
When you sell your Long Beach home to a cash buyer like Jay Buys Houses, closing is simpler and faster than a traditional financed sale because there's no lender involved. Here's the high-level flow:
- Purchase agreement signed by both parties
- Escrow opened with a licensed California escrow company
- Title search conducted — any liens or encumbrances identified
- Title insurance ordered
- Closing documents prepared by the escrow officer
- You sign the grant deed and other closing documents
- Buyer funds the purchase (wire transfer to escrow)
- Escrow records the deed with the county and releases funds to you
For a clean cash transaction with no title complications, this entire process takes 7–21 days. The escrow officer handles all the coordination — you primarily need to be available to sign documents and provide any requested information.
Opening Escrow
The day you accept our offer and sign the purchase agreement, we open escrow with a licensed California escrow company. Escrow is a neutral third party that holds funds and documents, ensures all conditions of the sale are met, and coordinates the recording of the deed. In Long Beach, we typically use escrow companies in the South Bay / LA area that are experienced with local transactions.
📌 Your right to choose: As a seller, you have the right to request a specific escrow company if you have one you prefer. We're happy to work with an escrow company of your choosing in virtually all cases.
Once escrow is open, you'll receive an escrow number and contact information for your escrow officer. They'll be your primary contact for the administrative side of the closing.
Title Search and Clearance
The escrow company orders a preliminary title report from a title company. This report shows the chain of ownership and identifies any encumbrances on the property — liens, judgments, code enforcement orders, or other claims that need to be addressed before the sale can close cleanly.
Common items found on Long Beach title searches include: mortgage payoff balances, property tax arrears, HOA dues owed, mechanic's liens, IRS or FTB tax liens, and sometimes old liens that were never formally released. The escrow company coordinates clearing each of these from proceeds at closing — you don't need to pay anything upfront.
Title insurance is then issued to protect the buyer (and their lender, in a financed transaction) against any claims that arise after closing. In a cash sale to Jay Buys Houses, we pay for the title insurance.
Documents You Sign at Closing
In a California residential cash sale, you'll sign several documents. The most important:
| Document | What It Does |
|---|---|
| Grant Deed | Transfers ownership of the property from you to the buyer. This is the core document of the sale. |
| Preliminary Change of Ownership Report (PCOR) | Required by California — notifies the county assessor of the ownership change for property tax purposes. |
| Closing Disclosure / Settlement Statement | Shows every financial transaction: sale price, payoffs, fees, and your net proceeds. Review this carefully. |
| Mortgage Payoff Authorization | Authorizes the escrow company to pay off your existing mortgage from the proceeds. |
| 1099-S Notice | IRS reporting form for real estate transactions. Usually signed acknowledging the sale will be reported. |
| Any lien payoff authorizations | If you have liens (HOA, IRS, etc.), you'll authorize those payoffs from proceeds. |
Documents can be signed in person at the escrow office, with a mobile notary at your home or office, or electronically for most non-notarized documents. If you've already relocated, documents can be sent to a notary at your new location.
Who Pays What at Closing
When you sell to Jay Buys Houses, here is the complete breakdown of who pays each closing cost:
| Cost Item | Who Pays? |
|---|---|
| Escrow fees (buyer's portion) | Jay Buys Houses ✓ |
| Escrow fees (seller's portion) | Jay Buys Houses ✓ |
| Title insurance | Jay Buys Houses ✓ |
| LA County transfer tax ($1.10 per $1,000) | Jay Buys Houses ✓ |
| Long Beach city transfer tax ($2.50 per $1,000) | Jay Buys Houses ✓ |
| Notary fees | Jay Buys Houses ✓ |
| Recording fees | Jay Buys Houses ✓ |
| Your existing mortgage payoff | Paid from your sale proceeds |
| Any liens on the property | Paid from your sale proceeds |
| Property taxes prorated to closing date | Prorated — typically minimal |
| Real estate commissions | $0 — no agents involved |
Your net proceeds = Sale price − mortgage payoff − any liens − prorated property taxes. Everything else (fees, taxes, closing costs) is paid by us.
When You Get Paid
On your closing day, Jay Buys Houses wires the purchase funds to the escrow company. Once the escrow officer confirms the wire has cleared, they coordinate the recording of the grant deed with the Los Angeles County Recorder's office. Recording typically happens same-day if the wire clears before noon; otherwise the next business day.
Once the deed records, escrow releases your proceeds. You can receive funds by:
- Wire transfer (most common) — funds typically arrive in your account within 2–4 hours of recording
- Cashier's check — available for pickup at the escrow office on closing day
You will not receive a personal check. California escrow companies disburse proceeds by wire or cashier's check only.
Full Closing Timeline for a Cash Sale
| Day | Milestone |
|---|---|
| Day 0 | Purchase agreement signed; escrow opened |
| Day 1–3 | Preliminary title report ordered and received |
| Day 2–5 | Any title issues identified and payoff demands sent |
| Day 5–10 | Payoff amounts confirmed; closing documents prepared |
| Day 7–14 | You sign closing documents (in person, mobile notary, or electronic) |
| Closing Day | Buyer funds wire; deed records; funds released to you |