[WSBARP] When is closing?

[Rich Holland]

Interesting fact pattern - almost exam like - from an out of state colleague:

PSA says property is AS IS, with all faults, etc.  Seller will not repair, knows nothing of the property.  Buyer agrees.
Closing is set for Day 1 (just for simplicity).

Day 1     Escrow has Buyer and Seller docs, funds, etc. and sends docs out to record.
Day 2     Title receives but does not record documents due to cut off.
Day 3     County is closed
That night, massive windstorm comes and does significant damage to the deck on the property
Day 4     Buyer's agent contacts Title and forbids them from recording transaction
                Seller claims transaction is already closed and recording is ministerial and property is AS IS anyway
Day 5     Buyer's agent still blocking title and states that Buyer's insurance refused claim because Buyer wasn't the owner on the date of the storm.

Now, I have a number of thoughts about this but was curious about the collective wisdom.  Clearly, to me, if one removed the escrow company from the equation, ownership transferred on day 1 when S gave B the deed and B gave S the funds.  Recording has to do with notice; not effectiveness of a transfer.  I wonder, therefore, whether that is changed because of the neutral third party.  This also reminds me of the recent thread on here about when Closing actually occurs.  To me, B has no real claim against S regardless of Closing.  Either it was already B's or B had already contracted to purchase the property AS IS.  To be clear, I am not given to understand that the Buyer wants rescission or to cancel the transaction (depending on the interpretation of when closing occurs), but, of course, wants S to replace the deck which, of course, S is not going to do for B or anyone.

I am curious of your thoughts on this.  Was the transaction closed?  Did the title company do the right thing by refusing to record?  Does the S have some sort of claim against B since S remains the listed owner with the County for taxes etc.?  Given the incredible oversimplification and understanding that it depends on what the contract actually says, does B have a legitimate claim to halt the title company when S has already delivered the deed?  And, for that matter, when is "delivery" from S to B when an escrow is involved?

Suffice to say, I responded with more questions than answers.

Sincerely,

Richard L. Holland
WSBA#23921

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