What is the primary difference between New York style and California style closings?

The primary difference between New York style and California style closings lies in how the closing process is conducted. In New York, the closing typically takes place in person at the office of an attorney or sometimes at the lender’s office. This is characterized by the parties coming together to sign documents, finalize the transaction details, and transfer funds in a single meeting.

In contrast, California's closing process generally involves the use of escrow services, where an impartial third party holds the funds and documents until all conditions of the sale are met. In this style, the actual signing of documents can occur at different times and locations, and it is not common for all parties to be present at the same time.

This distinction highlights how the operational processes surrounding real estate transactions can vary significantly between states, influenced by local customs, legal requirements, and the involvement of professionals such as attorneys and escrow officers. The presence or absence of in-person meetings and the role of escrow are central to understanding these different practices.