An escrow is a written agreement held by a third
party and released only when the terms of the escrow agreement are completed
or by a mutual release signed by all parties. An escrow can be comprised
of documents, money, or a combination of both. There are various types
of escrows. Some of the most common are as follows:
A repair or completion escrow is held for items not finished at the time
of closing. Money is held until certain items are completed. A repair
escrow is money held for a specific item to be repaired or replaced.
An escrow of money held when there is a notice of special assessment,
i.e. paving, water, ornamental, lighting, sewer, sidewalks, have been
created or ordered constructed.
In the case of the death of a title holder where the estate has not been
completed and taxes have not been paid, monies are held in escrow until
the time when the taxes are determined. Monies will be released to pay
the taxes or, if taxes are paid, monies will be returned to the estate.
This escrow is a document escrow; it could also include monies for documentary
stamps and recording fees. Most generally, the documents being held is
a Warranty Deed that is not recorded until the terms of the land contract
are complete. As part of this escrow, we would also receive and disbursement
payments for any of the following: principal and interest, insurance,
Construction disbursements services can be utilized by either lenders
or homeowners building their own home for the escrow of construction funds
to be paid to the builder. Funds are deposited with the escrow agent and
disbursed to the builder upon request of the builder and authorization
of by the owner or lender during the construction of the home or commercial
property. Each time a request is made for an advance for the project,
we check the public records to make sure no mechanics liens or judgments
have been filed against the property. Lien waivers are then collected
from each subcontractor to insure their services are being paid by the
general contractor in a timely manner to avoid any mechanics liens
against the property.