NATIONAL LEADERS ESCROW
RESIDENTIAL ESCROWS: The sale or purchase of a single-family home is often the most significant financial transaction in a person’s lifetime. Whether you are a buyer, seller, lender, or real estate agent, National Leaders Escrow, Inc., will ensure that your residential transactions close as quickly and efficiently as possible. It is our company’s belief that a knowledgeable Escrow Officer not only understands the escrow process but has background and understanding of the commonly used California Association of Realtor (C.A.R.) forms, the Consumer Finance Protection Bureau (CFPB) rules, and all applicable industry rules and regulations. Our Escrow Officer’s pride themselves in being informed and up to date on all industry practices so that our client’s receive the highest standard of service.
PROBATE SALES: Probate sales are subject to the court’s confirmation of the sale. Unlike traditional property sales, in most cases probate attorneys are involved. The Escrow Officer’s at National Leaders Escrow, Inc., are experienced and trained in handling probate sale escrows. Each Escrow Officer is familiar with the California Association of Realtor (CAR) forms, has been trained on the probate process, and recognizes what it takes to handle a successful and smooth probate sale escrow transaction.
REFINANCES: National Leaders Escrow, Inc., offers personalized customer service to lenders, mortgage brokers, and the banking industry. Recognizing the importance of providing exceptional service to the borrowers and lenders on refinance transactions, National Leaders Escrow, Inc., prides on a quick turn-around of documents and communication with clients throughout the entire refinance process. Keeping up to date on the regulation of the banking industry is important to us as we offer to be a reliable, service-oriented settlement service provider.
COMMERCIAL PROPERTY ESCROW: Commercial closings require extensive knowledge of the legal, financial, and regulatory aspects of buying and selling income property. Whether you are an attorney, lender, commercial broker, or a developer, the commercial escrow specialists at National Leaders Escrow, Inc., will handle your transaction with the knowledge and experience to deal with the intricacies of income producing properties. Our staff is trained to work with large enterprises and complex transactions.
BULK SALES: The sale of a business is known as a “Bulk Sale” or Business Opportunity transfer, which customarily consists of the sale of a business and its equipment, often including furniture, fixtures, goodwill, inventory, leasehold interest, licenses, and equipment.
Due to the complex nature of many of these transactions, it is important to select an Escrow Officer that is experienced with these types of sales. At National Leaders Escrow, Inc., your Escrow Officer will carefully handle your business transaction and make sure all the conditions to the escrow agreement are met by both the Seller and the Buyer to the transaction. Bulk Sale rules are governed by the Commercial Code of California. These laws protect many parties, including lien holders and creditors, as well as the State and Federal agencies. The primary purpose of California’s Bulk Sales Law is to protect buyers and creditors following the purchase of more than half of a business’s assets. If a Buyer makes a bulk sale purchase but does not adhere to the requirements set out in the Bulk Sales law, the Buyer will typically remain liable to the Seller’s creditors. In addition to the recording and publication a Notice to Creditors, your Escrow Officer will perform searches on the Sellers and the business, which helps to determine what is required to transfer the business to the Buyer and avoid successor liability, so that the Buyer shall not be obligated to pay Seller’s debts
MOBIL HOME ESCROWS: Mobile Home Escrows are completely different than Real Estate Escrows requiring different training, experience and technology, including the ability to successfully transfer mobile home titles through the department of housing. National Leaders Escrow, Inc., has been the leader in Manufactured/Mobile Home Escrow processing, working with the majority of mobile home dealers, realtors and private party. We have an entire team and department dedicated to mobile home processing every day.
National Leaders Escrow, Inc., Consistently receives mobile home escrow referrals through the industry knowing that we are experienced in processing this unique type of escrow. Just another reason to use National Leaders Escrow, Inc., for all of your escrow needs. We are the one stop shop for all of your escrow services.
SHORT SALE: A Short Sale (also known as Short Pay) is a sale of real estate in which the proceeds from the sale of the property will fall short of the balance of debts secured by liens against the property. The lien holder agrees to release their lien on the property and accept less than the full amount owed on the debt because the property owner cannot afford to repay the liens’ full amount. A Short Sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. As Short Sales are time sensitive and demanding, our staff consists of experienced Short Sale escrow officers who guide you through the process and enable banks and homeowners to feel confident that the escrow will close on schedule.
REO: Real Estate Owned (REO) is a property owned by a lender (usually a bank), and is labeled as an REO after an unsuccessful sale at a foreclosure auction. Typically, the foreclosing beneficiary sets the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders, the beneficiary will legally repossess the property. Once it is repossessed, the property is listed on the books as REO. REO has strict deadlines, tight requirements, and incurs special challenges.
1031 EXCHANGE: A 1031 exchange, otherwise known as a tax deferred exchange, is a simple strategy and method for selling one property, that’s qualified, and then proceeding with an acquisition of another property (also qualified) within a specific time frame. The logistics and process of selling a property and then buying another property are practically identical to any standardized sale and buying situation. A 1031 exchange is unique because the entire transaction is treated as an exchange and not just as a simple sale. It is this difference between “exchanging” and not simply buying and selling which, in the end, allows the taxpayer(s) to qualify for a deferred gain treatment. National Leaders Escrow, Inc., Escrow Officers who are knowledgeable with the 1031 exchange escrow process and they can answer all of your questions and walk you through the process.
WHAT IS ESCROW?
Escrow is a very important yet often misunderstood party in any real estate transaction. Multiple parties in a home transaction must use this service to protect their interest and assets. Escrow is a neutral 3rd party location holding funds for a real estate transaction.
WHY IS ESCROW IMPORTANT?
“IT PROTECTS ALL PARTIES INVOLVED”
Service is all that we have to offer. National Leaders Escrow, Inc., employees are continually apace and up to date with the ever-changing laws and regulations governing California Escrows and are ready to serve the public with their Real Estate needs.
WHAT DOES ESCROW DO?
Escrows duties are not limited to: Clearing title, ordering title insurance, obtaining payoffs, and released documents underlying loans or recorded items affecting the property. Receives funds from the buyer and/or the lender. Prepares vesting documents, affidavit on the seller’s behalf. Prorates taxes, insurance, and rents. Escrow prepares “Final HUD Statement” often referred as “Settlement Statement” for each party indicating the amounts paid in conjunction with the closing of a real estate transaction. Escrow forwards the deed to the county for recording and finally, escrow distributes funds to the proper parties.
IN SUMMARY:
Escrow is the process that assembles and processes many components of a real estate transaction. The escrow and escrow officers are a 3rd party acting on behalf of buyer, seller under the escrow law set forth by the Department of Oversight.
RESOURCES:
WAYS TO HOLD TITLE:
There are different types of real property ownership in California mainly divided into sole ownership and co-ownership. There are several variations as to how title is held in each type of ownership. Following are the seven most common examples of sole and co-ownerships:
Sole-Ownership
1. Single woman or man, who is not legally married.
2. An unmarried woman or man: A woman or man who has been married and is currently divorced.
3. A married woman or man as her/his sole and separate property: when a married woman or man interested in gaining ownership of property, in her/his name alone, she/he must receive her/his spouse’s consent by Quit Claim Deed, inter spousal transfer 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: Property 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: 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.
- PROPERTY TAXES:
If you have a transaction that is going or about to go through escrow, the following information may be important for you.
1. You should contact your escrow officer or title company to find out if the property taxes are open or paid. If there are any steps that are required to take they will be able to guide you.
2. If a current payment (Tax installment) wasn’t paid then it MUST NOT be paid directly. Instead you should prepare a cashier’s check or a money order for the payment amount and payable to the stated county tax collector. This payment should be forwarded to the escrow company at least 3 business days before delinquency. This will allow escrow to verify the tax payment and prevent delays of up to 6 weeks and possible double payments.
3. Any installment of a new tax bill can be paid from the proceeds of a sale at the close of escrow. However, there will be at least a 10% penalty if escrow closing is after the delinquency date.
4. If either or both payments cannot be verified but seller claims they were paid, seller will have to provide cancelled checks to prove these payments.
5. If the lender has an impound account, taxes will be paid from that account prior to the delinquency date. Note that if the loan is paid prior to the tax’s due date, the lender may apply the tax money they are holding to the payoff amount and not to pay the taxes.
