What We Do - Escrow & Title
Title Services
- In-house
Search and Exam
- Direct Title Services
- Trustee Sale Guarantee
- Litigation Guarantee
- Limited
Loan Policies
Title insurance is usually obtained when real property
is purchased. The policy of title insurance insures the owner and/or the lender of ownership of the property.
There are various coverages afforded, but a basic policy insures that the buyer is the owner and that any lender shown on
the policy is an ”insured” lender.
Many different types of extended coverages are available;
for example, an ALTA policy is quite often required by an institutional lender to afford them additional protection under
the title insurance policy. The title policy is written after an extensive examination of the public record is made
and the recording of the required documents as called for in the escrow.
Customarily in Arizona, the seller will
pay for the owner’s title policy and the buyer will pay for the lender’s title policy. But in almost every
case, the question of who pays closing costs is a matter of agreement between the parties. In the case of some FHA or
VA transactions, the escrow officer must follow the guidelines as required by the lender and/or government.
The National Association of Insurance Commissioners has defined the characteristics of Title Insurance that distinguish
it from other insurance lines as:
- The title insurance policy is a one-time fee
- Low premium rates
- Proportionately
low loss and high expense to premium ratios
- Most of premium
paid for title insurance pays for the title examination required for the policy
- Insures the current status of title instead of unforeseen future events
- Policy term is coextensive with the interest insured
The essence of title insurance
is to insure the status of the title for a specific time by assuring the policyholder that there are no recorded or hidden
defects to the interest insured in addition to those listed in Schedule B ("Items of Record" or recorded documents
that affect a subject property).
Escrow Services
- REO (bank-owned real estate)
- Short
sales
Your Escrow and You
Prepared by the Escrow Institute of California, P.O. Box 5792, Orange, CA 92613-5792. (The information
presented here was taken from a pamphlet prepared by the Escrow Institute of California to be handed out by escrow companies
to their clients. We decided to present it pretty much as written because escrow companies very rarely get to explain what
goes on in escrow in their own words. Usually your lender or Realtor explains the function of escrow to you. Most escrow officers
do not feel we do an adequate job of explaining their important role in a real estate transaction).
Note:
Check back for future articles about settlement practices in other states including those where there is no current escrow
requirement.
Escrow - what is it?
Very simply defined, an escrow is a deposit
of funds, a deed or other instrument by one party for the delivery to another party upon completion of a particular condition
or event. The California Escrow Law Section 17003 of the Financial Code provides the legal definition.
Why do I need an escrow?
Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change
hands until ALL of the instructions in the transaction have been followed. The escrow holder has the obligation to safeguard
the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title
only when all provisions of the escrow have been complied with.
How
does escrow work?
The principals to the escrow - buyer, seller, lender, borrower - cause escrow instructions, most usually in writing, to be created, signed and delivered to the escrow officer. If a broker
is involved, he will normally provide the escrow officer with the information necessary for the preparation of your escrow
instructions and documents.
The escrow officer will process the escrow, in accordance with the escrow instructions, and
when all conditions required in the escrow can be met or achieved, the escrow will be "closed." Each escrow, although
following a similar pattern, will be different in some respects, as it deals with your property and the transaction at hand.
The duties of an escrow holder include following the instructions given by the principals and
parties to the transaction in a timely manner; handling the funds and/or documents in accordance with the instruction; paying
all bills as authorized; responding to authorized requests from the principals; closing the escrow only when all terms funds
in accordance with instructions and provide an accounting for same, the Closing or Settlement Statement.
Who chooses the escrow?
The selection of the escrow holder is normally
done by agreement between the principals. If a real estate broker is involved in the transaction, the broker may recommend
an escrow holder. However, it is the right of the principals to use an escrow holder who is competent and who is experienced
in handling the type of escrow at hand. There are laws that prohibit the payment of referral fees; this affords the consumer
the best possible escrow services without any compromise caused by a person receiving a referral fee.
