FAQ Some frequently asked questions about escrow
What is an escrow?
Escrow is a service that enables a Buyer and Seller to transact business with each other through a neutral party, minimizing their risk.
What is the "Close of Escrow"?
This term refers to the recording of the Grant Deed and other applicable documents with the County Recorder.
When is and how much money is required from the buyer?
Upon approval of the new loan the lender sends loan documents to escrow. At this time the Escrow Officer gives the Buyer a final estimate of the funds needed for closing and schedules an appointment for the buyer to sign loan documents. Final funds for closing must be deposited into escrow not later than 48 hours prior to close.
What is a Statement of Information?
A confidential statement of information is required by the title company in order to insure the transfer of title.
What is the California Withholding Law?
The California Taxation and Revenue Code requires Buyers to withhold from Sellers proceeds an amount equal to 3 1/3rd percent of the sales price on the sale of certain California real properties. Sellers are required to complete Form 593-C and return it to escrow prior to close to insure compliance with California's tax withholding requirements.
What is a Certificate for 1099 Reporting?
The Internal Revenue Service requires each Seller to answer questions about the nature of their transaction. If one of the four questions the Seller is required to answer does not apply to the Sellers transaction, a 1099 is required to be issued on the sale.
Escrow is a service that enables a Buyer and Seller to transact business with each other through a neutral party, minimizing their risk.
What is the "Close of Escrow"?
This term refers to the recording of the Grant Deed and other applicable documents with the County Recorder.
When is and how much money is required from the buyer?
Upon approval of the new loan the lender sends loan documents to escrow. At this time the Escrow Officer gives the Buyer a final estimate of the funds needed for closing and schedules an appointment for the buyer to sign loan documents. Final funds for closing must be deposited into escrow not later than 48 hours prior to close.
What is a Statement of Information?
A confidential statement of information is required by the title company in order to insure the transfer of title.
What is the California Withholding Law?
The California Taxation and Revenue Code requires Buyers to withhold from Sellers proceeds an amount equal to 3 1/3rd percent of the sales price on the sale of certain California real properties. Sellers are required to complete Form 593-C and return it to escrow prior to close to insure compliance with California's tax withholding requirements.
What is a Certificate for 1099 Reporting?
The Internal Revenue Service requires each Seller to answer questions about the nature of their transaction. If one of the four questions the Seller is required to answer does not apply to the Sellers transaction, a 1099 is required to be issued on the sale.
