2016 Legal Holidays To Keep In Mind During Your Escrow Process

New Year’s Day
Friday, January 1

Dr. Martin Luther King Jr. Day
Monday, January 18

President’s Day
Monday, February 15

Cesar Chavez Day
Thursday, March 31

Memorial Day
Monday, May 30

Independence Day
Monday, July 4

Labor Day
Monday, September 5

Columbus Day
Monday, October 10

Veteran’s Day
Friday, November 11

Thanksgiving
Thursday, November 24
Friday, November 25

Christmas
Monday, December 26

When it comes to the escrow process, every detail counts because any overlooked detail can result in extra expense. One such detail is the escrow closing date. By carefully planning the closing date so it does not coincide with legal holidays, both Buyers and Sellers may be able to avoid extra expenses. How is this?

The County Recorder’s Office is closed on legal holidays, which means escrows cannot close, documents cannot be recorded, and disbursements could be delayed. Say, for example, an escrow were to close on a Friday before Memorial Day Weekend (with its legal Monday holiday). This could mean that checks and disbursements from that closed escrow would not be generated until the first business day after the holiday. Since interest on existing loans continues to accrue until the lender receives payment while interest on new loans starts at the funding date, both Buyer and Seller could end up paying additional interest.

With so many variables at work between buyers and sellers, escrow officers, lenders, and real estate agents, carefully planning and coordinating the escrow closing date is another key detail in the overall success of the escrow process.