The A-Z of Escrow: I & J

Judgment and Name Search: Part of the title search. Determines if there are any unsatisfied judgments against the seller or previous owners which were in existence while they owned the title.

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Impounds: Type of a trust account established by lenders for the accumulation of borrower's funds to meet periodic payments of taxes, mortgage insurance premiums, and/or future insurance policy premiums, required to protect their security. A portion of the monthly mortgage payment that is placed in an account and used to pay for hazard insurance, property taxes and private mortgage insurance.

Indemnity: Insurance against possible loss or damage.

The A-Z of Escrow: F & H

Hazard Insurance (Homeowner's Insurance): Policy that insures property against fire and other casualties.

Holding Escrow: The deposit of consideration with a third party by interested party or parties, for the purpose of effecting terms of a contract of agreement between the parties. These escrows involve extensive escrow instructions, scheduled communications and monitoring of monies at specified levels. Our service allows the interested parties to focus on the transaction itself, with the security of Escrow of the West as an experienced third party providing management.

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Flood Insurance: If flood determination obtained by your lender indicates that any portion of the property is located within a flood zone, a policy of flood insurance may be required by your lender.

Full Disclosure: The act of revealing all known facts that may affect a buyer's decision. It is also the broker's commitment to disclose known defects in the property for sale or lease.

The A-Z of Escrow: D & E

Escrow Cancellation/s: A Purchase Agreement is a legal and binding contract. One may request to cancel the escrow. For example, if the buyer/s show that they can not qualify for their loan, the Buyer can have their money (deposits) returned. This may also happen if the appraisal is lower than the asking price or that some problems are found during the inspections.

A seller may put a "Kick-out Clause" such a clause allows the Seller to accept one buyer's contingent offer over another and as a result back out without penalty if a second buyer makes a better offer.

Escrow Instructions: Are instructions that are signed by both the buyer and the seller, and that enable an escrow agent to carry out the necessary procedures required for the transaction.

Escrow Officer: An escrow officer is an escrow agent that acquired through experience and education a degree of expertise in escrow issues.

Deed: A legal document conveying title to a property. An instrument whereby a seller transfers ownership rights of a property.

The A-Z of Escrow: C

Chain of Title: A history of the ownership of a particular property.

Certificate of Title: In areas where attorneys examine abstracts or chains of title, a written opinion, executed by the examining attorney, stating that title is vested as stated in the abstract.

Close of Escrow: The date the documents are recorded and title passes from Seller to Buyer. On this date, the Buyer becomes the legal owner, and title insurance becomes effective.

Closing: The final step in the sale, purchase or refinance of property where ownership of the property is transferred.

Closing Costs: A general term to describe the fees that a borrower will pay at closing. These costs are sometimes called "settlement fees."

Commissions: A fee or allowance given to a sales person or agent or realtors which usually receive about 3% of the sales price (i.e. 3% to selling realtor and 3% to listing realtor) of the property at the close of escrow.

Commitment to Insure: Document stating conditions of the title insurance, also referred to as binder.

Constructive Notice: Notice imparted by the public records of the county when documents entitled to recording are recorded.

Contingent: Dependent upon conditions or events specified but not yet accomplished. Property may be sold contingent upon the seller or buyer meeting a predetermined condition.

Conveyance: An instrument in writing, such as a deed or trust deed, used to transfer (convey) title to property from one person to another.

Covenant:

(1) A formal agreement or contract between two parties in which one party gives the other certain promises and assurances, such as the covenant of warranty in a warranty deed.

(2) Agreements or promises contained in deeds and other instruments for performance or nonperformance of certain acts, or use or nonuse of property in a certain manner.

Covenants, Conditions and Restrictions: Commonly called "CC&Rs" (which are sometimes referred to as private zoning) and usually refers to a written recorded declaration which sets forth certain conditions, rules, covenants, restrictions or regulations established by a landowner to create uniformity of buildings and use within tracts of land or groups of lots. These restrictions can also be established via deed.

The A-Z of Escrow: B

Binder: A temporary insurance commitment covering a piece of real estate pending closing and the issuance of a permanent title policy.

Bona Fide Purchaser: One who buys a property in good faith, for fair value, and without notice of any adverse claim or third parties rights.

Breach of Contract: Failure to perform a contract, in part or whole, without legal excuse.

Broker Compensation or Fee: The amount of money the broker will receive for finding a loan for a borrower. This may be an amount paid by the borrower, an amount paid by the lender or a combination of the two.

The A-Z of Escrow: A

Abstract: A set of documents which record the ownership through time for a property. A brief history of the transfers of a piece of land, including all claims that could be made against it.

Ad Valorem: Literally, "according to value." this term is usually used in reference to real property taxes which are assessed according to value.

Adverse Possession: A process of acquiring title to real property by possession for a certain statutory period of time, it may require the fulfillment of other conditions.

Agreement of Sale: A written contract entered into between a seller and a buyer for sale of a property.

7 Common Ways to Hold Title

Sole-Ownership

1. Single woman or man who are not legally married.

2. An Unmarried woman or man: A woman or man that have been married and is currently divorced.

3. A married woman or man as her or his sole and separate property: when a married woman or man interested in gaining ownership of a property, in their name alone, they must receive their spouse's consent by Quit Claim Deed or otherwise to transfer, thereby relinquishing all rights, title and interest in the property.

Co-Ownership

4. Joint Tenancy: Is one owned by two or more persons in equal shares, by a title created by a single will or transfer, when expressly declared in the will or transfer to be a joint tenancy. A chief characteristic of joint tenancy property is the right of survivorship. When a joint tenant passes away, title to the property immediately vests in the survivor or surviving joint tenants. As a consequence, joint tenancy property isn't subject to disposition by will.

5. Tenancy in Common: Under tenancy in common, co-owners own undivided interests. Unlike joint tenancy in this type of co-ownership the interests need not be equal in quantity or duration. There is no right of survivorship; each tenant owns an interest that upon his/her death is vested to the legal heirs or devisees.

6. Community Property: is one acquired by husband and wife or either during marriage. Real property conveyed to a married man or woman is presumed to be community property, unless otherwise stated. Under community property, both spouses have the right by will, to dispose of one half of the community property, but all of it will go to the surviving spouse without a will. If spouse exercises his or her right to dispose of one-half, that half is subject to administration in the estate.

7. Community Property with Right of Survivorship: (Effective July 1st, 2001). Community property acquired by husband and wife, when expressly declared in the transfer document to be "community property with right of survivorship," shall pass to the surviving spouse without having to first pass through the administration of the estate.

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Life of an Escrow

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Escrow of the West Hosts Seminar Featuring Los Angeles County Deputy Assessor, John Noguez

On Wednesday, June 16, 2010, Escrow of the West hosted Los Angeles County

Deputy Assessor, John Noguez, for a seminar on the state of the real estate market. Introduced by Marcine Kline, who sits on the Community Advisory Board for the County Assessor and also is the Branch Manager/Senior Escrow Officer for Escrow of the West’s Sherman Oaks office, Mr. Noguez spoke to a capacity crowd made up of over 100 real estate professionals, as well as lenders, escrow officers and other community members.

Speaking from the County government perspective, Mr. Noguez provided the audience with numerous tools, tips and techniques to navigate the complexities of the current economy. Amongst the topics discussed, Mr. Noguez touched on the issue of declining home values and some of the reassessment programs available to homeowners, including parent to child transfers and Senior Citizen and Disabled Persons savings programs.

Of particular concern to those in attendance was Assembly Bill 2942 which would cause a “split-roll” of commercial property. In essence, if this bill were to be enacted, it would impose a volatile, arbitrary system of increasing business property taxes, including a rebuttable presumption that every three years, business properties have changed ownership and need to be reassessed.

“Mr. Noguez offered excellent insight into AB 2942 and the impact it will have if enacted,” stated Tom O’Rourke of Prudential California Realty. “Also, with the information I obtained about the transfer programs, I’ll be able to apply it to my business, which will help me to enhance the trust and confidence I have with potential Buyers and Sellers.”

Wendy Cox, Manager of Rodeo Realty in Studio City, also commented, “Being afforded the opportunity to learn about these programs directly from the Assessor’s office provides me with additional tools and the knowledge to help my Agents stay a step ahead in such a competitive market. I thank Escrow of the West for facilitating such an informative presentation.”

“We put together this seminar to help educate the community on these intricate property tax issues. Through events such as this, Escrow of the West looks to further our reputation as one of the leading independent, full service escrow companies in Southern California and anticipate hosting many similar discussions for our clients and the community in the future,” said Galit Ofengart, Owner/Manager of Escrow of the West.

To learn more about the many programs available to help lower or transfer your property tax base or to apply for one of the many programs available, visit the Los Angeles County Assessor’s website at http://assessor.lacounty.gov.

Escrow of the West, is a Southern California-based independent escrow company, licensed by the Department of Corporations and is a member of the Escrow Agents Fidelity Corporation. Escrow of the West, through its principals, has more than 70 years' experience in both residential and commercial real estate. For more information, visit www.escrowofthewest.com.

Why Independent?

You can feel more secure with an independent escrow company. Unlike banks, title companies and brokerages, an independent firm must comply with stricter operational and CPA auditing, bonding requirements, financial liquidity requirements and trust fund insurance guidelines.

We are licensed by the Department of Corporations for the State of California. All of Escrow of the West’s staff has been approved through the Department of Justice. Additionally, with less bureaucracy, our independent escrow company more easily achieves greater efficiency and productivity.

	Independent	Title Company	Broker Owned	Bank or Saving & Loan
Management	5 Year experience as Escrow Officer	No	No	No
Licensed By Department of Corporations	Yes	No, Regulated by the Department of Insurance.	No, Licensed Through the Real Estate Broker by the DRE	No, Regulated by the Department of Financial Institution
Annual Audit With no prior notice	Yes	No	No	No
Annual CPA Audit	Yes	No	No	No
Employees approved by DOC and department of Justice	Yes	No	No	No
Bonding Requirement	Yes	No	No	No
Req. for Financial Liquidity	Yes	No	No	No
Trust Fund Insurance	Yes	No	No	No

Escrow of the West: Independence

INDEPENDENT ESCROW COMPANY

As one of the leading independent, full-service escrow companies in Southern California, Escrow of the West provides the utmost in professionalism and knowledge, taking a team approach with each client relationship. We pride ourselves in upholding the highest ethical standards, in utilizing cutting edge technology, and in our ability to expediently close each transaction.

Our officers have over seventy combined years of escrow experience. This is why leading brokerages, lenders, real estate agents, and corporate clients continue to choose Escrow of the West as their trusted escrow provider. At Escrow of the West, we view each transaction as a partnership. This is how we have worked witch clients since the late 1980s and this is how we work with each client today.

Escrow of the West officers adhere to the “customer comes first” philosophy and effectively apply Escrow of the West competitive advantages to each client relationship. We employ the most dedicated team of Senior Escrow Officers, Escrow Officers, Sales professionals, relief, and technical support staff. Technology is a priority at Escrow of the West, and our Escrow Officers work hand-in-hand with our technology personnel, taking an integrated approach to each escrow transaction.

We see it as a prerequisite to put our clients’ interest first and strive to keep them updated with our progress. Escrow of the West offers competitive rates without compromising the high levels of dedication and service.

Independent Advantage

You can feel more secure with an independent escrow company. Unlike banks, title companies, and brokerages, an independent firm must comply with stricter operational and CPA auditing, bonding requirements, financial liquidity requirements and trust fund insurance guidelines.

Escrow of the West is licensed by the Department of Corporations for the State of California. All of Escrow of the West’s staff has been approved through the Department of Justice. Additionally, with less bureaucracy, our independent escrow company more easily achieves greater efficiency and productivity.

• Residential resale
• Commercial and industrial
• Investment properties
• Refinance
• New home sales
• REO
• Short sales
• Holding escrows
• Probate/ estate sales
• Trust Sale

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