Escrow Terms

By
Title Insurance with Stewart Title of California

Broker:

This is the person who represents

the buyer/seller during a real property

transaction. When buying or selling real

estate in California through a broker, you are

protected by dealing with a party who is

operating under state license.

Escrow:

This means to deposit money and

documents with an escrow agent, usually in

the form of a corporation, to be used as

specifically described in the written

instructions of the parties.

Escrow Officer:

This person writes the

written instructions of the parties for the

escrow agent. These instructions govern the

use of money and documents given by the

parties involved.

Preliminary Report:

This report shows

preliminary ownership and encumbrance

information. It is given to the escrow officer

after the escrow is opened.

Taxes:

The prorating of county, city, and

irrigation district taxes and the calculation of

bonds and special assessments requires

skillful handling.

Insurance:

At the time of closing, all

premiums must be adjusted and all policies

transferred. All changes must be made and

the insurance companies must be notified.

Prorate:

The division of proportionate

shares of rent, insurance, taxes, etc. between

the parties involved. This is usually

calculated by an escrow officer.

Revenue Stamps:

These are put on deeds

to show that taxes have been paid at a

transfer rate of .11% based on the sale price.

The escrow officer uses these when

appropriate.

Deed

: This is a document that is used to

transfer the ownership of land from one

person to another. The form of the deed may

vary.

Title:

The right by which the owner of the

land has possession of the property. Publicly

recording a deed is a common way to

establish a title.

Title Insurance:

A policy which protects

your rights as owner of a property, and will

reimburse for any problems with the title to

the property. Your real estate professional

can provide free information about title

insurance

Comments (1)

Douglas Lovitt
Washington Management Company, Inc. - Mill Creek, WA

Scott, this is a great post! Sometimes we forget that not everyone speaks real estate!

Feb 21, 2010 05:46 AM