Escrow Section
1. What is escrow?
Escrow is an impartial third party generating all the parties involved when it comes to a real estate transaction. Whether the property is going for sale or asking refinance from the bank, you will all need us to help you with it. In a real estate transaction, agents on both sides will hand over all information related to this subject property to escrow companies for safekeeping. Since we are the unbiased third party, our role is to keep every action within this transaction to be clear and precise.
2. How long does an escrow cycle takes?
As soon as the agents from both sides reached an agreement to sign the contract, it is when we open an escrow. Normally it takes 45 days from opening an escrow to close one. With OCC Escrow, we will do everything we can to ensure your closing on time. However, the period of an escrow depends on the working process of all the parties involved. It is possible that the closing date of escrow be either ahead of or behind the schedule.
3. What do Escrow Officers do?
Escrow officers will execute all written instructions on the contract to put your words into reality. In order to do that, we will provide Escrow Instruction to present how the transaction would be execueted. Whenever there is a change in the transaction, we generate all the related amendment to disclose the most up-to-date condition about this transaction.
4. Can I get legal advice from the Escrow Officers?
It would be appropriate and in your best interest for you to seek advice from your attorney. We are the impartial third party and we will follow every instruction which is mutually agreed by both Seller and Buyer side. However, with knowledgeable Escrow Officer, we can suggest some sources for you to find a solution.
5. Who pays for the closing costs?
When it comes to closing, all the costs involved with this transaction can be roughly divided into 2 categories, while Seller pays for costs related to ensuring Buyer has a clear title whereas Buyer pays for costs related to financing.
Agents’ Section
Escrow Companies basically rely on everything the agents give to us.
Buyer’s Section
We follow all your instructions and make your demands come into reality. Though we don’t represent you as your agent does, we are here for you on every step and will carry out your wishes.
1. Below is an illustration of a whole picture for Buyers
- Buyer Oneself Related
Who is the buyer? Is it a person or non-human?
The Amount of buyers
Relationship between them
=>If you are buying this property more than 1 person, we need to know the relationship between all the buyers and discuss with you how you would like to take title of this property together.
2. What will I get from the escrow company?
When you and Sellers’ side (seller and seller’s agent) reached an agreement and signed the contract, you’ll probably hear a term called ‘Open an Escrow’. This means that we will get your contract from the agents and will put in record the related information we know based on the contract into our escrow system. We will go through every specific details and demands to make sure it is exactly what you and Seller have agreed. For example, some of the most important information would be Termite reports, Natural Hazard Disclosure Report reports (NHD), Homeowner Association(HOA), ac, fridges …all appliances Seller agreed to provide, any loan contingencies to protect your rights, etc.
After that, you will get an escrow package from us, including all the documents we need you to sign in order to keep on going. The escrow package includes : NHD (usually your agent will order for you), Preliminary Report(from Title company) and the signing package. In the signing package, the usual documents are attached as:
Electronic Documentation: you agree to sign said agreements digitally
Vesting Form: how you are going to hold title on this property
Confidential Information Statement: you would need to provide your social security number
Supplemental Escrow Instructions: it discloses all the information you need to know about purchasing a property
Preliminary Change of Ownership Report (PCOR):
Fire Insurance:
*Every case differs, you may get extra documents according to your situation.
3. I’m married, but I want this property to be my own, what should I do?
According to the California State Law, married couples share every property in halves. Since this is a default regulation, in order to own the property solely, your spouse would have to sign a ‘Quit Claim Deed’ to exclude their name and along with their interest on this property.
4. If I can’t sign the documents when needed, what should I do?
You can always find someone to represent your interest. Either you need your relative or a lawyer to act on your behalf. In order to do so, you’ll have to sign a document named ‘Power of Attorney’ (POA) to assure and prove that you’ve authorized and transfer the power to your designated person to act on your behalf.
We follow all your instructions and make your demands come into reality. Though we don’t represent you as your agent does, we are here for you on every step and will carry out your wishes.
Seller’s Section
1. Below is an illustration of a whole picture for Seller
- Seller oneself related
Nationality
If the you are not a US citizen, it means the Foreign Investment in Real Property Tax Act of 1980 applies to him/her
=>Fill out the FIRPTA form(insert FIRPTA form doc online)
Ownership
=>Type: Individual/Corporation/Trust/Partnership/Limited Liability Company
- Property related
Clear All Debts
The debts on the property usually take forms in lien and judgement. In order to transfer the title from Seller to Buyer, all the information on the subject property has to be clean.
=>Lien
=>Line of Credit
=>Judgement
If the subject property fails to clean all the debts, the buyer may not get a loan from the bank. Furthermore, if some of the judgements are severe, it may contains the possibility to go to legal process, which may require the subject property to be hold for investigation, then it would be the last thing we want to see in the transaction.
- Tax Related
593C Form
593E Form (Optional)
1031 Exchange (Optional)
2. What will I get from the escrow company?
When you and the buyers’ side (seller and seller’s agent) reached an agreement and signed the contract, you’ll probably hear a term called ‘Open an Escrow’. This means that we will get your contract from the agents and will record the related information we know based on the contract into our escrow system. We will go through every specific details and demands to make sure it is exactly what you and the buyer agreed. For example, some of the most important information would be termite reports, NHD reports,
*Just to keep in mind, disclosing the HOA information on this property accordingly is ESSENTIAL for all our working progress!
After that, you will get an escrow package from us, including all the documents we need you to sign in order to keep on going. The escrow package includes : NHD(your agent will order for you), Preliminary Report(from title company) and the signing package. In the signing package, the usual documents are attached as:
Grant Deed: This is the document stating you as the seller is granting this property to the buyer. Please have this document notarized.
Electronic Documentation: You agree to sign other agreements digitally. It may be more convenient for you to sign all other documents that will be prepared during the escrow process. Simply just log in your email and one click, it’s signed back to us.
Supplemental Escrow Instructions: We prepare Escrow Instruction based on your contract; hence, it discloses all the information you need to know about what your contract said, including who Seller and Buyer are, how many days both sides have agreed to remove contingencies, who is responsible for which report, etc.
*Instruction to Pay Commission (Optional)
Confidential Information Statement: Most importantly, we need your official name you’re using to take title and your SSN.
Loan Condition: You’ll need to disclose the loans’ condition on this property if there is. (See ‘Payoff’ from ‘Other Sections’)
Prelim Approval: Along with your escrow package, you will receive prelim report. This is a summary of what prelim report states.
*Every case differs, you may get extra documents according to your situation. Above is the basic
Other Sections – Lots of Reports!? Lots of Other Parties!? Don’t you worry, dear.
During the Escrow process, you may hear some reports’ names from your agent, us or even your lender. Here are some brief introduction for these reports.
- Termite Report
- Natural Hazard Disaster Report
- Home Warranty Plan
- Preliminary Report
- Payoff Statement
- HOA
