Commercial Real Estate and Business Escrow and Refinance
What is an Escrow?
Buyers and sellers of a piece of property establish terms and conditions for the transfer of ownership of the property. These terms and conditions are given to a third party known as the escrow holder. In turn, the escrow holder has the responsibility of seeing that terms of the escrow are carried out. The escrow is an independent neutral account and the vehicle by which the mutual instructions of all parties to the transaction are complied with.
Why is Escrow Needed?
Whether you are the buyer or the seller, you want assurance that no funds or property will change hands until all instructions have been followed. With the increasing complexity of business, law and tax structures, it takes a trained professional to supervise the transaction.
How Long is an Escrow?
The length of an escrow is determined by the terms of the purchase agreement/joint escrow instructions and can range from a few days to several months.
Who Chooses the Escrow?
The selection of the escrow holder is normally done by agreement between the principals. If a real estate agent is involved, they may recommend an escrow holder.
Residential Real Property Escrow and Refinance
The escrow is a depository for all monies, instructions and documents necessary for the purchase of your home, including your funds for down payment and your lender’s funds and documents for the new loan. Generally, the buyer deposits a down payment with the escrow holder and the seller deposits the deed and any other necessary documents with the escrow holder. Prior to the close of escrow the buyer deposits the balance of the funds required and agreed upon by the parties with the escrow holder. The buyer instructs the escrow holder to deliver the monies to the seller when:
• The subject property is free and clear of all title defects,
• The deed conveying title of property to buyer has been sent to the county for recording.
The escrow holder thus acts for both parties and protects the interests of each within the authority of the escrow instructions.
Escrow cannot be completed until the terms and conditions of the instructions have been satisfied and all parties have signed escrow documents. The escrow holder takes instructions based on the terms of the purchase agreement and the lender’s requirement
For over 30 years, Chae Law Firm, P.S. has worked with clients/lenders/real estate agencies locally and nationwide to accommodate the most demanding Buyers, Sellers and Borrowers.