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Buyers and Sellers: Types of Escrow
Manufactured Homes
Escrow
Sincere Escrow has earned a reputation for excellence and is widely
regarded as an experienced Mobile Home Escrow Agent in Southern
California. Mobile homes can be located either within mobile home
parks or upon privately owned real property. If a mobile home has
been, or is in the process of being, installed upon a permanent
foundation system, it is legally transformed into and becomes defined
as real property. All of these circumstances will affect the way
in which a transaction for the transfer of a mobile home is handled.
Escrow officers handling these transactions must be very familiar
with the titling and transfer requirements of the Department of
Housing and Community Development of the State of California.
Residential Escrow
A residential escrow is normally the sale or purchase of a single-family
residence or condominium. In this escrow, the escrow officer is
working with a buyer, seller, and their real estate agents to conduct
a timely closing. The escrow officer serves as a communication link
between all the parties in this transaction: the principals, their
realtors, the lender, Title Company, an insurance agent and any
other party that may be involved.
The escrow officer will comply with instructions from the Buyer's
lender as specified in the escrow instructions and will communicate
with the seller's lender to obtain payoff information on any existing
liens. All documents required will be prepared; all necessary releases
will be obtained; all pro-rations will be calculated.
When all of the instructions of both buyer and seller have been
carried out, Sincere will "close the escrow". That is
to say, record all documents and disburse funds as specified. At
closing, the escrow officer will prepare a final closing statement
for both buyer and seller, giving an exact accounting of all funds
deposited into escrow.
Unimproved Land
Unimproved land in real estate is defined as land that does not
have certain basic required services necessary to utilize it for
other purposes. These include electricity, telephone, street access,
or water available.
Bulk Sales
A bulk sale generally involves the sale of a business and, if properly
handled, serves to protect the creditors of the seller of the business
and the purchaser of the business. The statutes governing bulk sales
require a notice to be recorded and published which gives the creditors
of the seller an opportunity to file claims with the escrow holder
for amounts due them for providing goods and/or services to the
business. An escrow is legally required for the transfer of any
license that comes under the jurisdiction of the Department of Alcoholic
Beverage Control of the State of California. These include all beer,
wine and liquor licenses issued for off sale purposes.
These transactions require that a notice of the transfer be recorded
and published so that creditors of the transferor may have the opportunity
to file claims with the escrow holder. Extensive knowledge of the
rules and regulations that govern these transfers is essential for
the expedient and successful processing of these escrows. Sincere
Escrow has this experience.
Commercial Property
Sincere Escrow recognizes that there is no such thing as
an easy commercial transaction. Each transaction is unique. The
main role of the Escrow Officer becomes that of a coordinator and
problem solver. Handling commercial escrows requires unique skills
on the part of the escrow company.
We handle all forms of commercial escrow, including developer site
acquisitions, business opportunity escrows, and stock transfers.
Our team has a solid understanding of figures, interpretations,
inclusions, contracts and financial, civic, state, city and county
codes that permeate escrow transactions. Types of commercial escrows
we handle include:
- Commercial Properties
- Industrial Facilities
- Developer Site Acquisitions
- Tract Sales
- Business Opportunity Escrows
- Stock Transfers
Refinance Escrows
One escrow specialization is "refinance escrows". The
refinance escrow is typically more streamlined than a resale escrow.
The homeowner does not have to have a termite inspection or purchase
a home warranty. There are fewer parties involved in the transaction,
so communication moves a little faster. Sincere Escrow processes
hundreds of Refinance Escrows each year. We are experienced in providing
safe and timely closings.
1031 Exchanges
A 1031 exchange allows you to defer the payment of capital gains
taxes associated with real estate transactions. By selling one property
and buying a higher-priced property, you can also get additional
depreciation deductions, which can act to increase your after-tax
income.
Several rules must be followed in order to qualify a real estate
transaction as a 1031 exchange. First, only property held for business
or investment purposes can be used in a 1031 exchange, and both
properties in the transaction must be of "like kind".
Like kind property is real estate or other tangible property that
is similar in nature or classification.
Exchange Types include:
1. Delayed Exchange was codified in the 1984 Tax Reform
Act; and it is by far the most common type of exchange. After the
closing on the sale of your property you have 45 days in which to
identify replacement property (or properties), and 180 days in which
to close on the purchase of the replacement property.
2. Reverse Exchange is simply the reverse of a delayed exchange.
This occurs when an investor identifies and purchases replacement
property prior to the sale of property he relinquishes. Federal
guidelines for a reverse exchange were issued September 15, 2000
so we have safe harbor rules to follow.
3. Improvement Exchange allows the investor to construct
a new replacement property within certain guidelines including time
constraints.
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