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National Realty of Brevard Inc
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Escrow services in America

Escrow is an independent, trusted third-party which helps buyers, sellers, lenders and any other persons involved in the transfer or change of ownership or vested interest. They hold money in a trust account and follow all parties’ instructions while working impartially with all parties. They will also do all the necessary paperwork or investigation of the business for government liens, lender liens, tax liens, private liens, etc. to find out the nature of the title and ownership or vested interests. They coordinate with all government entities, lenders, landlords and all other parties who have a vested interest. American escrow companies are licensed by the government to conduct escrow services, however attorneys and licensed brokers are also authorize to conduct escrow services. They follow the instructions of all parties, they will not dispense money or documents until the changing of ownership, they complete all necessary clearances from all parties, and perform the appropriate recordings.

Frequently Asked Questions about BizWorldUSA.com

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What is escrow?
Escrow is a type of service offered by an independent, trusted, neutral third-party for the public. Their main function is to receive and disburse the money and/or documents for two or more transacting parties such as buyer/seller/lender, with the timing of such disbursement by the third-party dependent upon the performance of the parties’ agreed upon contractual provisions.
Who is the escrow holder?
This is the licensed company, entity, attorney, or broker who is handling the transaction, with the primary duty to assure that no funds or business will change hands until all instructions have been carried out to completion.
What types of transactions need an escrow?
Most contracts that involve the changing of ownership; transfer, lease, or financing of real or personal property, business, license; transfer of stock; transfer of equipment; transfer of inventory, etc. can be placed in escrow. The buyer or seller or the parties of the transaction should demand the protection of escrow for any transaction which involves a substantial investment.
What is bulk sale escrow (BSE)?
Bulk sale escrow (BSE), also known as business opportunity escrow (BOE) or bulk transfer escrow (BTE), is a type of escrow transaction used for the sale of inventory merchandise, business assets, goodwill, client list, or an entire company. There is no real property transfer in the BSE. The escrow serves to protect the interests of unsecured creditors and it eliminates the risk that the seller of the assets will use the proceeds from the sale for purposes other than paying debts or taxes owed.
Why do I need an escrow?
Whether you are the buyer or the seller or the lender, you want an assurance that no funds or business will change hands until all of your instructions have been followed. Also, due to the nature and complexity of business, law, and tax structures, they coordinate with all necessary departments, creditors, associated persons, and government entities, to ensure that all parties’ instructions are fulfilled completely within the permitted law.
What are the common reasons for escrow?
These are the five most common reasons for escrow:
  • Escrow serves as a third-party neutral depository for money and documents. The escrow holder does not favor one party or another and acts impartially toward all.
  • The escrow holder assures that all conditions are satisfied before the transfer of documents or the deeds are recorded or filed or distributed.
  • The escrow holder provides expertise in escrow practices, document preparation, and other related provisions.
  • The escrow holder provides a clear, concise accounting of all of the funds involved in the escrow process.
  • The escrow holder arranges for the safe delivery of all funds and documents to their proper recipient.
Who are in escrow parties?
  • Principals: Person who assign the escrow instructions. They are usually the buyer and seller in the sale, the borrower in a refinance, the lessor and lessee in a lease or rental agreement, the vendor and vendee in a land contract, and the transferor and transferee in a bulk sale or a liquor license transfer.
  • Other parties: In addition to the principals, many other parties may be involved. This includes business and real estate brokers and agents; attorneys; escrow officers; lenders and mortgage brokers; insurance agents; government agencies representing municipal reports, taxes, liens, judgments and other monetary or non-monetary encumbrances.
Who handles the escrow transaction?
The transaction is headed up by the escrow officer who is a trained and experienced professional and he/she will be assisted by an escrow assistant. They can help you to close your transaction quickly and correctly within the permitted law. These professional persons may, under the terms of the instructions, make the decision that the conditions of escrow have been met, and then order the transfers of the real or personal property or inventory or other contractual items to the interested parties.
What is the seller’s duty from the opening of escrow?
You have to submit your fully executed contract signed by all concerned parties. Provide relevant information of the ownership, license and permit numbers, and any other necessary documents which show your ownership in order to transfer to another party. Also provide all other parties’ contact information to the escrow company which needs to get clearance from them before transfer of title or ownership.
What is the buyer’s duty from the opening of escrow?
You have to submit your fully executed contract signed by all concerned parties and transfer the funds as per the contract. If the transaction is contingent upon certain things, it is your duty and obligation to complete those before the said time. Get all the reports from the escrow company and ask any questions about those reports. They will tell you what is on the report and if you are not satisfied then you can get a professional opinion on those areas of concern. Take all necessary paperwork to apply for licenses and permits, etc. Notify of appropriate updates to the escrow.
When final documents are read, what do I have to do?
When the escrow instructions or documents have been prepared, read them carefully to determine that they are complete and properly reflect your total agreement. If you have any questions or corrections or concerns, bring them to the attention of the escrow officer and discuss in detail before signing the documents. Once you sign the documents they become the basis for the conducting of the escrow.
Can I get legal advice from the escrow officer?
No, you cannot get any legal advice from the escrow company or from the escrow officer as they are not legal counsel and cannot give advice. The purpose of escrow is to take, and comply with, instructions to carry out the mutual agreement of the principles. In the event of a disagreement between the parties, the escrow officer must remain neutral until an agreement is reached.
I have some other questions about the transaction. Who can I ask?
You should talk with your broker or agent or you can get legal advice or professional advice from your chosen professional. Escrow companies and escrow officers cannot give advice on negotiations. In the best interest of all, a knowledgeable escrow officer, whose responsibility is giving impartial service to all parties, will refer you to the proper source for your answers.
What happens at the closing?
When the instructions of all parties to the escrow have been carried out, the closing can take place. All outstanding funds are collected at this time and all costs must be paid. All persons pertaining to the transaction have to sign the respective papers. All specified documents are recorded or filed at this time. Then the transfer of ownership is established and the escrow closes successfully.
What fees must I pay at closing?
Fees and charges are controlled by many factors and depend upon the type of transaction and the terms of your agreement. However, there are certain charges which are considered to be mandatory. These are escrow fees, notary fee, recording fee, title fee, publication fee, county fee, title insurance policy premium, documentary transfer taxes, and prepaid taxes. Your escrow officer will provide you with an itemized statement.
What is the fee for escrow service?
The escrow fee is normally based on the size and complexity of the transaction. Usually the escrow fee is divided in accordance with the agreement between the parties.
What do I have to do after the close of escrow?
Upon close of escrow, review the closing statements to determine that the costs were allocated in accordance with your instructions. Any recorded documents to which you are entitled will be mailed to you after the escrow has closed. Some of these documents will come to you directly from the respective offices of record.
What happens if the transaction is cancelled?
When a transaction fails to close, for any reason, a cancellation agreement must be reached between the parties. This cancellation agreement must be submitted to the escrow office in the form of a written letter with cancellation instructions.
What is the fate of my deposit?
Since the deposit is part of the escrow contract, all parties must mutually agree to its disposition. Instructions for the disposition of this deposit should include, among other things, provisions for payment of charges incurred during the escrow.
Who pays the cancellation fees?
This is based on the cancellation instructions signed and approved by the concerned parties. This would include fees and costs incurred by the escrow holder and any amounts spent by the escrow as part of the transaction.