Frequently Asked Questions


WHAT IS ESCROW?

A Seller has found the Buyer for his property; the Buyer has found the property he’s been looking for. The negotiations have been made and terms of sale have been decided upon. Now it’s time to “put it in escrow”. The Escrow Holder will prepare the necessary documents, coordinate with the title company, assist in obtaining releases for any liens or encumbrances against the property or owner, request demands for payoff, work closely with the Buyer’s lender and assist the Buyer in executing loan documents, determinate that contingencies and all conditions of the transaction have been met, obtain insurance as required, collect and disburse funds.

SILVER PINES ESCROW, INC. is a neutral, third party depository for the necessary documents and funds of a transaction, which are used and delivered to the rightful party when all conditions of the transaction have been met. By its very nature, the Escrow Holder must at all times be neutral and unbiased, not favoring either Buyer, Seller, Broker, Agent, or Lender.


WHY DO WE NEED AN ESCROW?

The Escrow Holder should be a neutral third party, responsible for ensuring that all conditions of the transaction have been met. In most cases, a Seller will not be comfortable handing over a grant deed to a Buyer before all the Buyer’s obligations of the transaction have been met. Conversely, a Buyer is usually not ready to pay any money directly to the Seller until he is assured that all the necessary documents have been executed and delivered. SILVER PINES ESCROW, INC. will work closely with the title company to be sure that all taxes are paid current on the property, loans are properly paid so that a reconveyance is obtained and recorded, and that all liens or encumbrances which the Buyer should not be responsible for are eliminated at the close of escrow. Finally, a closing statement is issued to both Buyer and Seller at the close of escrow, showing the terms of the transaction, documenting all closing costs and adjustments, which is extremely helpful to each party at tax time.


WHAT CAN I DO TO MAKE TRANSACTION GO SMOOTHLY?

Your Escrow Officer needs to have your complete name, address, phone numbers, and fax number (be sure to specify if your fax is public or private). If you are a Seller, please furnish us with your existing lender information, including, most importantly, your loan number and contact information for any lender that needs to be contacted. The primary Borrower’s social security number will be required to obtain a Demand from the lender. If you are a Buyer, please shop for your fire insurance early, and provide us with the name and phone number of your agent so we can be sure that the necessary coverage is in place when it needs to be.

Please be aware that SILVER PINES ESCROW is unable to discuss your file with anyone other than a party to our transaction. Please do not ask us to give information to any one who is not a principal or direct service provider to the transaction. We will always strive to protect your privacy.

Finally, please be sure that we have your forwarding address and phone number in case we need to contact you after escrow closes.


ESCROW IS SCHEDULED TO CLOSE THIS MONTH…DO I NEED TO MAKE MY MORTGAGE PAYMENT?

Yes! We recommend that you protect your credit by continuing to keep your loan current, especially and in order to avoid any penalties. Just prior to making the payment for payoff of your loan, SILVER PINES ESCROW will contact your lender to get the most recent payoff amount. In the event your last payment has not been posted to your account yet, we will hold the amount of the payment until the payment has been verified, or the bank will refund the overage to you directly.


HOW DO TAX PRO-RATIONS WORK?

Unless otherwise specified in the escrow instructions, SILVER PINES ESCROW will pro-rate taxes, based on the most recent tax figure, from the close of escrow. The tax year runs from July 1 through December 31 for the 1st half, and from January 1 through June 30 for the 2nd half. We recommend that the Seller always pay the taxes when due in order to avoid any late penalties. In the event your payment is not posted to the account at the close of escrow, we will either hold the amount of the taxes until your payment is verified, or the Tax Collector’s office will refund any overpayment to you directly. If you make a tax payment just prior to the due date, please provide us with a copy of your check and payment coupon.

Commonly misunderstood is the fact that the FIRST HALF taxes, due before December 10th, actually runs for the period of July 1 through December 31. SECOND HALF taxes, due before April 10, run for the period of January 1 through June 30. Thus, taxes are paid “behind”, not “ahead”.


WON’T MY GOOD FAITH DEPOSIT CHECK BE HELD UNTIL THE ESCROW CLOSES?

The Escrow Holder is required to immediately negotiate a deposit check upon receipt. This is the best way to assure the Seller that the good faith deposit is actually “good funds”, and saves time by ensuring that all funds will be available at the close of escrow.


DO I NEED TO BE PRESENT FOR THE CLOSING?

Not in Southern California. The escrow is “closed” when the documents specific to the transaction have been recorded; Escrow’s authorization for Recording will not occur until all the necessary documentation and funds have been deposited into escrow. Most often, this occurs a day or two prior to the actual closing.


WHY DO I NEED TO COMPLETE THE STATEMENT OF INFORMATION?

In addition to searching public records on the property for liens and encumbrances, the title company will also check for liens and judgments that may show against the owner of the property, or (for the Lender’s benefit) against the Buyer. The Statement of Information will help to determine which, if any, liens may actually belong to an individual. All information given to SILVER PINES ESCROW is held in the strictest of confidence and used for no other purpose than stated.


WHAT IS THE PRELIMINARY CHANGE OF OWNERSHIP REPORT (PCOR)?

The PCOR contains information which is provided to the County Tax Assessor’s Office for their use in assessing the property for taxes pursuant to the sale. It is submitted at the time the Grant Deed is recorded. Sometimes a Buyer will not know the exact terms of the loan or certain specifics about the sale at the time the PCOR is completed. We ask that you answer what you know, confirm that your address shows correctly, and sign the second page. The critical information for this form is the Sales Price, and the address of the person(s) to whom the next tax bill should be sent. Additional information may be requested by the Assessor’s Office for certain situations, such as when a conveyance occurs between parents and children.


HOW SHOULD I TAKE TITLE TO THE PROPERTY?

This is a question for your attorney or tax advisor. How you decide to take title to the property has certain estate and tax consequences, and should be considered very carefully.