Going Into Escrow

About the Book

The use of escrows to process real estate transactions is a method sweeping the country.  Yet few buyers and sellers (and borrowers) are familiar with the procedure and less familiar with what they can expect - and with what they cannot expect.  "Going Into Escrow" explains what you should bring to the escrow agent, what you can expect that agent to do for you, what regulations pertain to escrow agents mandating what they must accomplish as well as what they may be prohibited by law from doing.

For the person entering escrow, this book will give an insight and advance knowledge as to your relationship with the escrow agent and other agents involved, such as attorneys, lenders, brokers and governmental agencies.  It will explain what information you should obtain and what decisions you should make prior to going into escrow.  It provides examples on how to take title, what documents (deeds, mortgages, etc.) should and should not contain, what property insurance you may have to obtain, and what protection you can expect from title insurance.

"Going Into Escrow" discusses what disclosures a seller must make to a buyer and how this is done.  It points out legal requirements, defaults, damages and what occurs if one party dies or becomes incompetent during escrow.  The risk of loss is detailed if one takes possession prior to completion of the transaction and how you can protect yourself from such loss.

Legal relationships are matters to be considered throughout the escrow process.  What does one do about multiple contracts, conflicting demands made by the other party, performance under the escrow instructions, unrecorded liens, and possible cancellations?  These are reviewed in detail, and suggestions made as to seeking professional help when desirable.

A review of the instructions you give to the escrow agent is made in extensive form, furnishing a sample set of escrow instructions which you can expect in a normal situation.  How will you take title, obtaining a description of the property you are buying or selling, what title protection should you request?

The escrow agent will ask you about taxes to be paid or to remain as a lien on the property, what other liens are to be paid off or remain, if the buyer is giving a promissory note to the seller or to a corporate lender.  Other questions will arise: is the property leased, how are taxes, insurance premiums and payments to an existing lender to be adjusted, how are you to comply with requirements of the Foreign Tax Act ("FIRPTA").

oing Into Escrow" also discusses real property exchanges involving the Internal Revenue Code.  Basically for investments, the matters of structuring the exchange is discussed, as well as gain - basis, like kind, "boot" and intermediaries.

Promissory notes are reviewed in detail, including negotiability, usury, defaults and offsets.  A sample note form is presented.  Other documents are similarly reviewed: deeds, mortgages and deeds of trust, bills of sale, etc., together with signatures and acknowledgments.

A sample escrow transaction is produced including escrow instructions, documents, preliminary title report and closing financial statement.  In short, "Going Into Escrow" will give you the knowledge and background which will instill a greater understanding and confidence leading to a more successful consummation of your real estate contract and protection of your legal rights.

About the Author

V. R. Oltmanns has served as corporate officer with broad experience in all phases of escrow operations as well as title insurance and real estate contracts. He served as president of a title guaranty company, and supervised escrow and title operations. He is the author of "Escrow Procedure" (published by Chicago Title) and several other publications on escrows. Oltmanns has also served as an expert witness in legal cases dealing with escrows. He is a graduate of Ohio State University, a member of National Consultant Referrals, Inc. and of Forensic Expert Advisers, Inc.