If you’ve ever sold or purchased a home, you’ve probably heard the term “Escrow.” But what does it mean? Although we have covered some of our services in a previous blog post, allow us to take a few minutes to explain the services we offer at Eastland Escrows.
What is Escrow?
An escrow is a process wherein the Buyer and Seller deposit written instructions, documents, and funds with a neutral third party until certain conditions are fulfilled. In a real estate transaction, the Buyer does not pay the Seller directly for the property. The Buyer gives the funds to an escrow company who, acting as an intermediary, verifies that title to the property is clear and all written instructions in the contract have been met. The title company through recording of documents transfers the ownership of the property to the Buyer through and pays the Seller. This process protects all parties involved.
History of Escrow
The word derives from the Old French word escroue, meaning a scrap of paper or a scroll of parchment; this indicated the deed that a third party held until a transaction was completed.
Originally a deed delivered to a third person until a future condition is satisfied, which led to sense of “deposit held in trust or security” (1888).
What Eastland Escrows Does
Since 1973, the folks at Eastland Escrows have offered a wide variety escrow services:
- Sale and Refinance of Residential and Commercial properties
- Mobile Homes
The legal process of administering a person’s estate after they are deceased (by the Public Administrator). If the person has a last will and testament, probate involves proving that the will is legally valid, executing instructions and paying applicable taxes.
This is a property sold by the owner without agents
- Short Sales
These include the sale of property or land for less than the amount of the current loan with current lender approval.
- 1031 Exchanges
From Section 1031 of the U.S. Internal Revenue Service (IRS) Code, this allows the seller to avoid paying capital gains taxes when selling an investment property and reinvesting the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.
- Reverse Mortgages
A reverse mortgage loan, like a traditional mortgage, which allows homeowners to borrow money using their home as security for the loan. Also like a traditional mortgage, when someone takes out a reverse mortgage loan, the title to their home remains in their name. However, unlike a traditional mortgage, with a reverse mortgage loan, borrowers are not required to make monthly mortgage payments.
- Joint Control/Holding
Joint control is defined as the contractually agreed sharing of control and exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
- Vacant Land
- Business Sales (aka Bulk Sales)
- Liquor License Transfer
- In-house and Mobile Notary services available
Oversight for Your Protection
In California, where Eastland Escrows is located, all services are performed under the watchful eye of the Department of Financial Protection and Innovation. Formally known as the Department of Business Oversight (DBO), this is an organization exists to ensure that each company meets all of the requirements of California Escrow Law. Eastland Escrows is an independent escrow agency.
ABOUT EASTLAND ESCROWS IN COVINA, CALIFORNIA
Eastland Escrows, Inc. is an independent escrow company based in Covina, CA serving all of Southern California since 1973. With over a 100 years of combined experience, we pride ourselves in working like a dog on behalf of all our clients! We have closed thousands of escrow transactions from real estate sales and refinances to business sales.