Escrow: Chapter 1 Complete Guide

Escrow: Chapter 1 Complete Guide Escrow ️(legal process) by which complex sale, exchange, or loan transaction involving real property is brought to completion. Escrows Required by law ️Probated Property- in court dispute Impound Accounts- Liquor Licenses- Negotiable Securities- Escrows Recommended ️Sales of Real Property Loans Exchanges Real Property ️land and those things affixed to it (Attached by roots, imbedded, permanently resting on it, attached by mortar, nails, bolts, or escrew. Personal Property ️anything which can be owned or possessed that is not real property. Valid Contracts ️-Capable Parties: any capable (No minors, convicts) -Mutual Consent & Writing: -Lawful nature -Sufficient Consideration -Stated Condition -Forgery Prevention (counterfeit or fraudulent) Purchase Agreement ️document that is signed before entering into escrow Agent ️one who represents a principal (person/party) in contracts with third person. Escrow Officer ️stakeholder (agent) - to both principals (Buyers and sellers) - individual persons do not hold licences as escrow agents in California (Only corporations). Fiduciary Relationship ️agent has a duty to act in the highest faith, and to protect the trust and confidence of his principals. Escrow Holders ️-Escrow Agent Corporations -Attorneys at Law -Institutional Escrow Departments -Real Estate Brokers California Escrow Association (CEA) ️Founded in 1956 - dedicated to the professionalism of escrow personnel through education and legislation. California Land title Association (CLTA) ️title companies, independent or subsidiaries: sets standards and procedures for the state's title companies. Bilateral Instructions ️single escrow instruction signed by both buyers and sellers in the southern part of California Deed ️written instrument which gives over the title to real property from one owner to another. Deed of Trust ️device which secures the property as collateral for the note - when recorded, it becomes a lien. Escrow Instructions ️operative document - preprinted forms that permit the listing of all the funds and documents which will move through escrow - condition of escrow also stated Grant Deed ️document that transfer title (evidence of property ownership) - with key word "grant" Joint Tenancy ️ownership by two or more persons with the right of survivorship Lien ️recorded document that secures real property for an obligation or debt Quitclaim Deed ️deed that releases whatever interest the grantor has in the property. Reconveyance ️either full or partial that indicates a recorded release of the indebtedness against real property Tenancy in common ️ownership by two or more persons without the right of survivorship Vesting ️ways to hold title Community Property ️requires individuals to be married Amendment to Instructions ️change to either correct or alter or add to the escrow instructions to avoid any conflict in the instructions. Beneficiary ️the lender in a trust deed loan transaction Deposit ️money received from the buyer used as partial payment towards the down payment and