Frequently asked questions
Everyone wants to be informed, so below are a list of questions and answers you may have regarding your escrow.
ESCROW PROCEDURES
WHAT IS ESCROW?
Escrow is a service, which holds funds or documents until the completion of specified conditions. We are a neutral third party only following instructions from the principals to the transaction.
WHY DO I NEED CERTIFIED FUNDS TO CLOSE?
In order not to delay the close, escrow holder requires “certified” funds to close. If a personal check (or out of state cashier’s check) is handed escrow holder, the escrow cannot close until the check clears. If the check has not cleared, and funds are disbursed, this would mean that we are disbursing other’s funds that are held in “trust” and would be considered commingling, which is illegal.
WHY DO I NEED TO COMPLETE A STATEMENT OF IDENTITY (S)?
The title company uses the information on the Statement of Identity to check the information on liens of record against your personal information. If someone with a similar name has a lien against them but the social security number or address is different from your information, the title company can use that information to decide if the liens belong to you or someone else.
IS THE INFORMATION PROVIDED ON THE STATEMENT OF IDENTITY KEPT PRIVATE?
When escrow receives the Statement of Identity, we forward it only to the title company, or, in the case of a Buyer, we may send a copy to your insurance agent who needs your date of birth, social security numbers and contact information.
WHAT IS IS AN UNINSURED DEED DECLARATION AND WHY DO I NEED IT?
When someone receives a property without consideration, by a Deed that is recorded but not insured by a title company, the title company requires that the Grantor (Seller or Giver) signs an Affidavit or Declaration of Uninsured Deed in front of a Notary Public other than the Notary who notarized the Deed. This is to insure that the property was not given under duress or fraudulently. Unfortunately, there are a lot of forgeries these days and the title needs to be extra careful when issuing title insurance.
IF THE ESCROW CANCELS, HOW CAN THE BUYER GET THEIR DEPOSIT BACK?
If either party cancels escrow, and we have signed escrow instructions from both parties in our file, we require mutually signed cancellation instructions by the Buyer and Seller to release the funds. If the Buyer and Seller do not agree to the disbursement of the funds, they will be held in escrow until the parties either agree on the disbursement or go to court and have a judge decide who gets the funds.
Escrow is a service, which holds funds or documents until the completion of specified conditions. We are a neutral third party only following instructions from the principals to the transaction.
WHY DO I NEED CERTIFIED FUNDS TO CLOSE?
In order not to delay the close, escrow holder requires “certified” funds to close. If a personal check (or out of state cashier’s check) is handed escrow holder, the escrow cannot close until the check clears. If the check has not cleared, and funds are disbursed, this would mean that we are disbursing other’s funds that are held in “trust” and would be considered commingling, which is illegal.
WHY DO I NEED TO COMPLETE A STATEMENT OF IDENTITY (S)?
The title company uses the information on the Statement of Identity to check the information on liens of record against your personal information. If someone with a similar name has a lien against them but the social security number or address is different from your information, the title company can use that information to decide if the liens belong to you or someone else.
IS THE INFORMATION PROVIDED ON THE STATEMENT OF IDENTITY KEPT PRIVATE?
When escrow receives the Statement of Identity, we forward it only to the title company, or, in the case of a Buyer, we may send a copy to your insurance agent who needs your date of birth, social security numbers and contact information.
WHAT IS IS AN UNINSURED DEED DECLARATION AND WHY DO I NEED IT?
When someone receives a property without consideration, by a Deed that is recorded but not insured by a title company, the title company requires that the Grantor (Seller or Giver) signs an Affidavit or Declaration of Uninsured Deed in front of a Notary Public other than the Notary who notarized the Deed. This is to insure that the property was not given under duress or fraudulently. Unfortunately, there are a lot of forgeries these days and the title needs to be extra careful when issuing title insurance.
IF THE ESCROW CANCELS, HOW CAN THE BUYER GET THEIR DEPOSIT BACK?
If either party cancels escrow, and we have signed escrow instructions from both parties in our file, we require mutually signed cancellation instructions by the Buyer and Seller to release the funds. If the Buyer and Seller do not agree to the disbursement of the funds, they will be held in escrow until the parties either agree on the disbursement or go to court and have a judge decide who gets the funds.
CLOSINGS
HOW LONG DOES IT TAKE TO GET MY CHECK AFTER ESCROW CLOSES?
We ordinarily issue checks the day after escrow closes. If we are fortunate enough to receive the funds from title and confirmation before 4:00, we try to issue check the same day.
WHAT CAN I DO IF THE BANK PUTS A HOLD ON MY CHECK?
To help accommodate the needs of our clients to have funds available immediately, we are able to have your funds wired to your bank account. Our bank’s cutoff time to wire funds is 2:30 pm. When we wire funds, they are received by your bank the same day. Some banks may take a day to post to your account even though the money has been received by your banking institution. Once posted to your account, there is no hold by your bank. There is a $25.00 fee to have funds wired, as our bank charges us for the transaction. If you wish to have your funds wired, please fill out our WIRE AUTHORIZATION form (available online under forms page) and fax it to your escrow officer.
WHY IS THERE A “HOLD” SHOWING ON MY CLOSING STATEMENT?
The most common reasons for the title company to hold funds are a) the owner made a payment since the last payoff statement obtained from your mortgage company, or b) the owner’s mortgage stated that they paid the property taxes but they are not showing paid on the County Tax records or c) the owner has a line of credit that has an available credit and may or may not have been frozen.
WHEN WILL THE “HOLD” BE RELEASED?
In the case of the funds being held due to changes in the payoff or line of credit balance, the title company usually holds the funds for 2 weeks after the close of escrow. If the existing lender accepts the payoff without needing any further funds, the money is released to escrow, who in turn, releases the funds to the party from which they were held. In the case of paid taxes, the title company holds the funds until the taxes show paid on the County Tax Collector’s records. Once they show paid, title releases the funds to escrow, who in turn, releases the funds to the party from which they were held.
We ordinarily issue checks the day after escrow closes. If we are fortunate enough to receive the funds from title and confirmation before 4:00, we try to issue check the same day.
WHAT CAN I DO IF THE BANK PUTS A HOLD ON MY CHECK?
To help accommodate the needs of our clients to have funds available immediately, we are able to have your funds wired to your bank account. Our bank’s cutoff time to wire funds is 2:30 pm. When we wire funds, they are received by your bank the same day. Some banks may take a day to post to your account even though the money has been received by your banking institution. Once posted to your account, there is no hold by your bank. There is a $25.00 fee to have funds wired, as our bank charges us for the transaction. If you wish to have your funds wired, please fill out our WIRE AUTHORIZATION form (available online under forms page) and fax it to your escrow officer.
WHY IS THERE A “HOLD” SHOWING ON MY CLOSING STATEMENT?
The most common reasons for the title company to hold funds are a) the owner made a payment since the last payoff statement obtained from your mortgage company, or b) the owner’s mortgage stated that they paid the property taxes but they are not showing paid on the County Tax records or c) the owner has a line of credit that has an available credit and may or may not have been frozen.
WHEN WILL THE “HOLD” BE RELEASED?
In the case of the funds being held due to changes in the payoff or line of credit balance, the title company usually holds the funds for 2 weeks after the close of escrow. If the existing lender accepts the payoff without needing any further funds, the money is released to escrow, who in turn, releases the funds to the party from which they were held. In the case of paid taxes, the title company holds the funds until the taxes show paid on the County Tax Collector’s records. Once they show paid, title releases the funds to escrow, who in turn, releases the funds to the party from which they were held.
ABOUT 1099'S
WHY DOES MY 1099 SHOW THE SALES PRICE INSTEAD OF MY PROCEEDS?
The IRS requires escrow holder to report only the sales price on a transaction. When you file your tax return, you will breakdown your expenses, depreciation, gain, etc., under advisement of your CPA.
WHAT IF MY 1099 HAS THE WRONG INFORMATION?
If your 1099 has the wrong sales price, social security number or percentage of ownership, contact our office at 909-542-6500 and request a correct copy.
The IRS requires escrow holder to report only the sales price on a transaction. When you file your tax return, you will breakdown your expenses, depreciation, gain, etc., under advisement of your CPA.
WHAT IF MY 1099 HAS THE WRONG INFORMATION?
If your 1099 has the wrong sales price, social security number or percentage of ownership, contact our office at 909-542-6500 and request a correct copy.
