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Understanding the Escrow Process... Do I Really Need to Use an Escrow? And Why?
What Exactly Is An Escrow? An escrow occurs when a neutral third party holds the documents and monies involved in a real estate transaction and ensures that all conditions of the transaction are met. Escrow also refers to a special account that a lender establishes to hold monthly installments from the borrower to cover property taxes and insurance. An escrow holder is a neutral third party who takes instructions based on the terms of the real estate transaction and, when necessary, the lender’s requirements.
It then becomes the job of the escrow, through the escrow agent handling
the deal, to get paperwork drawn up and signed, and to collect the
required funds and hold them until the closing. * Receive and hold all documents, instructions, and monies pertaining to the real estate transaction.
* Request a preliminary title report to assess the status of title to the property.
* Request a beneficiary statement or payoff demand from existing lenders as
part of the loan process.
* Hold inspection reports, deeds, and insurance documents.
* Comply with the lender’s requirements in its instructions to escrow.
* Prepare or obtain the grant deed.
* Prorate taxes, interest, insurance, rents, and other costs related to the property.
* Release the deed and other documents.
* Request the title insurance policy.
* Close the escrow in accordance with the instructions of the buyer, seller, and lender.
* Disburse funds as authorized by the escrow instructions, including real estate commissions, loan payoffs, title insurance, taxes, recording fees, and other costs. * Prepare final statements of
disposition of all funds. As both buyer and seller benefit from the usage of an escrow, it is customary for the escrow fee to be split between buyer and seller. You may use one of the escrow companies in the sidebar to the right, or
choose your own. For residential real estate transactions, the
escrow process is clearly defined and the paperwork is standardized.
The Mystery of Real Estate... What is Title Insurance and Why Do I Need It? The home buying process is, by its very nature, a complex transaction which involves the exchange of a valuable asset in return for money. The buyer needs confirmation that the seller actually owns the property and has the right to sell it. That's where title insurance comes into play. Title Insurance is an important part of the real estate transaction since it insures you that all liens placed against the prior owners of the property, or documents that will restrict your use of the property, have been fully disclosed to you. The process of evaluating title
begins with a Preliminary Title Report. This report provides the
buyer with an opportunity to review any impediments that would prevent
obtaining clear title to the property.
Title Insurance insures owners that they are acquiring marketable title to the property. Unlike casualty insurance policies which insure against future events, title insurance is designed to eliminate risk or loss caused by title defects from past events. Title insurance provides coverage only for title problems that were in existence at the time the policy was issued. Issuing a title insurance policy is an extensive and exacting process. Title insurance companies work to eliminate risks by performing a painstaking search of the public records, or the title company’s own "plant", where public records, laws, and court decisions pertaining to the property and the parties to the escrow are maintained. This is done to determine the current recorded ownership, recorded liens or encumbrances, and other matters of record which could affect the title to the property. Once a title search is complete, the title company issues a Preliminary Title Report detailing the current status of title.
As your real estate representative, we will review the Preliminary Title Report as soon as it is issued, paying particular attention to the following items:
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Escrow Companies Escrow Companies – Long Beach Anchor Seaport Escrow Cardinal Pacific Escrow Inc A-List Escrow
Escrow Companies - Palos Verdes Peninsula Escrow Rancho Palos Verdes: Malaga Cove: Silver Spur:
Let Me Help with Your Escrow Fees The cost of your
escrow is dependent on the size of the home. Listed below
is a simple formula that will give you a good idea on the cost. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx What Exactly is Covered by Title Insurance? Not all risks can be
eliminated by a title search, since certain "hidden
defects", such as forgeries, identity of persons,
incapacity, incompetence, and failure to comply with the law,
cannot be disclosed by an examination of the public records.
While the Preliminary Title Report is an offer to insure under
certain circumstances, the Title Insurance Policy is a contract,
providing coverage against such "hidden defects." Title Insurance CASH BACK Offer I believe in helping
my clients by providing quality information that is easily
accessible, full service to take care of all the details
associated with buying or selling your home, and giving little
extra that you can take to the bank. To help defray the cost of
title insurance, let me make this proposal… Title Representatives Tim McChesney
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. . Copyright 2010 Philip McCollum Serving the communities of the South Bay and Long Beach, including Rolling Hills, Rolling Hills Estates, Palos Verdes Estates, Rancho Palos Verdes, Torrance, San Pedro, Carson, Hermosa Beach, Redondo Beach, Manhattan Beach, Long Beach, Lakewood, and Signal Hill. Broker/Agent does not guarantee the accuracy of the square footage, lot size or other information concerning the conditions or features of properties provided by the seller or obtained from Public Records or other sources as presented in this website. Interested parties are advised to independently verify the accuracy of all information through personal inspection and with appropriate professionals. Information herein deemed reliable but not guaranteed. |