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 Common questions
1. WHAT IS THE DEFINITION OF
ESCROW?
escrow [es'kro] - a deed, bond, or other written agreement put in
charge of a third person, until certain conditions are fulfilled.
2. WHAT IS
THE DIFFERENCE BETWEEN A TITLE COMPANY ESCROW AND AN INDEPENDENT ESCROW
COMPANY SUCH AS INLAND EMPIRE ESCROW?
You may be approached by a title company
escrow, to
use their services as an escrow company. However, do you really know
the difference between an independent escrow company, such as INLAND
EMPIRE ESCROW, and a title company escrow? A title company escrow is
regulated by the Department of Insurance, which focuses on insurance
laws, and is able to offer incredibly low fees, as an incentive to
order title insurance, which only relates to permanent dwellings and
land. Independent escrow companies are advantageous, as they are
required to be bonded and audited annually by the Department of
Corporations. Title company escrows are never audited, are not required
to be bonded, do not complete escrow officer certification and are not
even required to hold an escrow license! The simple answer is to
protect yourself with an independent escrow company, such as INLAND
EMPIRE ESCROW, the leader in independent escrow for over 17 years. If
you should have any questions regarding title company escrows, please
contact our staff.
3.WHAT IS
ESCROW, AND WHAT DOES IT DO?
"Escrow" is the formal procedure utilizing an
independent third party, "Escrow Agent" to effect the transfer / sale
of the terms of, or an encumbrance upon property.
Simply put, an escrow is the involvement of impartial escrow agent to
act as an intermediary between the Buyer and Seller, to collect
documents and/or funds for delivery to the appropriate parties upon
completion of the terms and conditions of the escrow instructions or
contract.
4.WHO PAYS
THE ESCROW FEE AND HOW MUCH IS IT?
Generally this means, when a person buys a
home he does not pay the
Seller directly. Instead, he deposits funds with an escrow company,
which then remits to the Seller on the Buyer's behalf, when the
property has been transfered into the Buyer's name.
Not only
is,"Escrow" the concept of a third party recieving and disbursing
funds, but it also includes other valuble transaction services. In
order to facilitate the transfer of property from one owner to another,
the best escrow comapanies will:
· Prepare, review and/or revise escrow
instrunctions.
· Determine the legal ownership and status of the
property through a "Title Search".
· Request a beneficiary's statement if a debt is to
be assumed by the buyer.
· Confirm that the buyer is "Qualified" and meets
the lender's requirements.
· Confirm property meets requirements imposed by
buyer and/or lender.
· Prorate all related financial matters involved in
the ownership transfer.
· Ensure all legal documents are complete,
including recording deed.
· Comply with time limits imposed in instructions.
· "Close" escrow when all instructions have been
fulfilled.
· Disburse funds as instructed, including all
related fees.
Prepare final statement for all concerned parties.
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