Escrow Basics and Legal Requirements

Escrow Basics

• A simple sale escrow typically requires cash down, a new loan, and pay-off of the old loan.
• Reasonable duration for an escrow process is around 60 days, allowing sufficient time for necessary transactions.
• Both conditions of escrow and memoranda must be confirmed by the escrow officer for accuracy.

Escrow Items

• Patio furniture is generally not included in escrows unless specified as a condition, helping to clarify ownership of personal property.
• Escrow instructions are expressed in dollar amounts to ensure clear financial expectations.

Legal Matters

• Legal guidance is essential if the escrow officer is aware that the grantor is a minor, deceased, or incompetent, which may complicate the transaction.
• Accurate vesting of names is crucial for both grantees and buyers to ensure proper ownership documentation.

Title Company Requirements

• Title companies request a Statement of Information to save time and minimize confusion during the escrow process.
• For a grant deed to be recorded, it must include acknowledgment and a notary seal, ensuring legal validity.

Information Collection

• A Statement of Information necessitates the collection of social security numbers, addresses, and occupations to verify the identities of the parties involved.

Escrow Basics

• A simple sale escrow typically requires cash down, a new loan, and pay-off of the old loan.
• Reasonable duration for an escrow process is around 60 days, allowing sufficient time for necessary transactions.
• Both conditions of escrow and memoranda must be confirmed by the escrow officer for accuracy.

Escrow Items

• Patio furniture is generally not included in escrows unless specified as a condition, helping to clarify ownership of personal property.
• Escrow instructions are expressed in dollar amounts to ensure clear financial expectations.

Legal Matters

• Legal guidance is essential if the escrow officer is aware that the grantor is a minor, deceased, or incompetent, which may complicate the transaction.
• Accurate vesting of names is crucial for both grantees and buyers to ensure proper ownership documentation.

Title Company Requirements

• Title companies request a Statement of Information to save time and minimize confusion during the escrow process.
• For a grant deed to be recorded, it must include acknowledgment and a notary seal, ensuring legal validity.

Information Collection

• A Statement of Information necessitates the collection of social security numbers, addresses, and occupations to verify the identities of the parties involved.

Test your knowledge on the fundamentals of escrow, including the necessary legal requirements and items typically involved in the process. This quiz covers the timeline, conditions, and title company requirements essential for smooth escrow transactions.