COMMON ESCROW INSTRUCTIONS

1. How the escrow officer will receive and hold the buyer's money for the purchase of the property?
2. The specific time frame set by the buyers and sellers for the transaction to close.
3. Particular requirements or specific actions that are to be performed by either party. The escrow officer cannot close until all agreements made have been satisfied.
4. The authorization for the escrow officer to distribute funds for title insurance, real estate commissions, recording fees and other costs that arise.
5. Instructions for paying taxes and insurance.
6. If the escrow officer's examination of the title report discloses liens against the seller or a lien for which the seller is responsible. The escrow instructions usually provide that a portion of the purchase price can be withheld from the seller and used to pay these liens and clear title so the transaction can be closed.

Our focus is to provide superior service for each and every situation, to ensure each escrow transaction is handled with accuracy and attention to detail.

Our services include

Preparation of an escrow agreement structured to accommodate the escrow parties
Customization of escrow agent duties to comply with each unique escrow transaction
Deposit, hold, and disburse escrow funds in accordance with the escrow agreement

Our services provide peace of mind by

Holding funds in a (FDIC) Federally Insured Institution
Providing periodic reporting of escrow account activity as required (online viewing of accounts available)
Allowing Money Market Interest Bearing Account or Non-Interest Bearing Account options
Separate account with viewing options available (must meet long-term high dollar thresholds)

Our services are utilized by parties involved in various transactions, including

Mergers and Acquisitions
Earnest Money, Earn Out Provisions, Escrow Holdbacks
Asset or Stock Transactions
Investment Offerings
Litigation Settlement
Lease/Loan Proceeds
Warranty and Indemnification Requirements
Liquidation of Funds
Divorce Settlements
Other various business transactions

BUSINESS TRANSCATION SERVICES

When a small business changes hands, we make sure it is done right.

Before a seller hands over the keys to the business to a buyer, the sale needs to be completed through the escrow and closing process. Our Escrow Department works with all parties involved in the business transfer as the neutral third party, making sure that all the requirements of the contract are met so the sale can close smoothly.
Every closing we do includes a set of core services required to cleanly transfer the business from the seller to the buyer. As part of our comprehensive basic escrow package, our Escrow Department will do the following:

Safely hold earnest money in a secure escrow account pending closing
Notify and obtain clearances from county, state and federal agencies as required.
Obtain written evidence of proper authority for each entity to sign the purchase agreement and documents and consummate the transaction.
Obtain a copy of all real estate leases, and coordinate and confirm the lease assignment with landlord.
Prepare escrow instructions according to the terms and conditions of the purchase agreement.
Prepare settlement statements for buyer and seller reflecting all funds being handled through escrow.
Coordinate the drafting of closing documents with escrow attorney.
Collect and disburse all closing funds according to escrow instructions.
Pro-rate and pay for rent, deposits, taxes and other required expenses out of proceeds for the transaction.
File and record all necessary documents with the appropriate agencies.
Coordinate any necessary payoffs and UCC-3 terminations, amendments and/or releases of lien, including up to two payoffs, plus wire transfer or overnight fee for each, to ensure that secured creditors are satisfied.
Provide one complete set of all closing documents executed at closing for each party.
Archive copies of all sale and closing documents for a minimum of five years.

The following services are also offered with the closing:

Perform UCC-1 lien search and business personal property tax search on the business to ensure clear title can be conveyed.
Obtain corporate status report from the Secretary of State of all entities involved in the transaction to confirm that the entities exist and are in good standing.
File UCC-1 financing statements with the Secretary of State when seller financing is involved.
File UCC-3 lien terminations and/or amendments when payoffs are involved for the seller.
File Assumed Name Certificates with the state and county as necessary.
File Abandonment of Assumed Name Certificates for the seller with the state as necessary.

Since we know every small business transaction is unique, we also offer additional solutions when business transfers include any of the following terms:

Motor vehicle title transfer if vehicles are included in the transaction.
Franchise business coordination if the business is a franchise.
SBA and commercial loan coordination when transactions are funded by third-party loans.
Stock transfer services if the transaction is a stock sale rather than an asset sale.
Escrow holdback and disbursement accounts when a buyer and seller agree to hold a specific amount of funds back after closing for later disbursement when specified conditions are met.
Collateral safekeeping services when assets like stock certificates or perhaps a domain name should be held by a neutral third party until the terms of a loan have been met.

To learn more about our business transaction services and our published fee schedule, or if you are ready to open escrow, call us today.

Escrow

As an investor, it is vital to consider how your payment or deposit will be held during the completion of mutual obligations in any contract. Escrow services provide a neutral third party which holds the funds in compliance with the instructions of all the parties to an agreement. Neither party may access the funds until all of the obligations of the parties are satisfied.
Mexican lawyers, Notaries and real estate agents cannot legally hold funds “In Trust.” Mexico does not have the Escrow Services which are available in Canada or the US. In Mexico, funds are customarily held in the realtor, developer or lawyer’s personal bank account.
The account is uninsured and susceptible to seizure or liens. Although the broker or lawyer will hold your funds with good intentions, their creditors and tax authorities (SAT) will have access to these accounts.

The accounts are not protected as they are elsewhere in North America.

To secure your deposit or payment, you should use an Escrow Service which is insured and held in a Canadian or American bank in a segregated account. RAL. have a trustworthy law firm authorized to provide Escrow Services in Mexico and elsewhere in North America.

THE BENEFITS OF ESCROW SERVICE INCLUDE

Separately administered Escrow Accounts.
The funds are held in a Canadian & American Chartered Bank accounts.
The Escrow Account is protected by professional liability insurance for $1,000,000 per account.
The Escrow Service includes an arbitration process to resolve any disagreements with the transaction.
Protection against fraud

PROFESSIONAL ESCROW SERVICES FROM RAL. ARE AVAILABLE FOR A VARIETY OF SITUATIONS IN ALL TYPES OF TRANSACTIONS BETWEEN COMPANIES AND INDIVIDUALS

Real Estate Transactions
Property Rental
Line of credit
International Trade
Vacation rentals
Payment of fees
Administration of Trust accounts in Mexico

CONSTRUCTION ESCROW SERVICE

Protects the builder as well as the buyer/owner during construction or renovations. The funds for the project are held in Escrow and will be released as the construction progresses. The Escrow helps the builder stay on budget, complete all conditions. and ensure that expenses for the building are paid on time and in full. Funds held in Escrow also protects the buyer/owner by guaranteeing that the construction company does not use their money inappropriately.

Beware of closing companies who claim that they can receive and hold funds in their Escrow Account because one of their members is an American Realtor and therefore the money will be deposited into their trust account and held until the closing. They claim your funds will be protected by the realtor’s board of which they are a member. This claim is not accurate.The realtor’s board in each US State will only permit funds to be deposited in Trust for transactions taking place in the State of which the realtor is an active member – representing the buyer of the seller.

ESCROW IN COMMERCIAL TRANSACTIONS

When buying, selling or offering services, both parties to a contract are concerned that the other party will not deliver on what they promised. The “client” wants to receive the product or service and the “seller or service provider” wants to be certain that they will be paid once they do deliver. In some contracts this can be achieved by a COD method of payment on delivery. If no payment, no delivery. However, what can be done when the delivery needs to be shipped to its destination thousands of kilometers away? Or partial deliveries over a period od time? Or the provision of services over time including partial instalments? One of the parties of the contract has to take the risk that the other will comply faithfully with the bargain or there will not be a transaction.

Escrow services resolves this dilemma by providing a neutral third party to hold the funds until all the parties have accomplished their part of the bargain, the conditions of the Escrow are detailed in the Escrow Services Agreement. The Agent holds the funds and disburses them according to the terms of the Agreement and respect the conditions.Trust RAL as your Escrow Agent. We have an impartial, experienced, and multi-disciplinary team of lawyers that will prepare the Agreement and anticipate any issues that may arise. Once appointed and in control of the funds, RAL will respect the obligations contained in the agreement and will help resolve any issues that may resolve.

Closing Costs

What Closing Costs should you expect?

There are certain standard costs linked to closing the sale of a house. These costs are often divided between the buyer and seller, as dictated in the sales contract. Many are conventional, but there are nuances to each, so you'll want a real estate expert in Colorado to help show you through your deal.

Costs pertaining to your loan to be paid at closing

Points (optional)
Appraisal Fee
Credit Report
Interest Payment
Escrow Account

Taxes commonly paid at closing

Property Taxes
Transfer Taxes and Recording Fees

Insurance fees due at

Homeowners Insurance
Flood or Quake Insurance (optional)
Private Mortgage Insurance (PMI) (optional)
Title Insurance

Sellers

As we get through the details of your transaction, I'll not only work to get the highest sales price, but I'll also push for lower closing costs. And once we've come to an agreement, I'll fully explain the closing costs so you are informed of exactly where your money is going.

Buyers

If you are purchasing a property in any County, you will be given a "Loan Estimate" (LE) of closing costs within three days of submitting your loan application. The estimate is based on the loan officer's prior experience and is required to be within a suitable range so you're not stunned when you come to the closing table. I'll be happy to review the LE with you, answering your questions and highlighting any estimates that appear to be out of the ordinary.

Closing Services

In Colorado, an escrow is “closed” on the day that the Grant Deed is recorded in the official records at the County Recorder’s office. The moment the Grant Deed is date-stamped by the County Clerk is considered the moment that ownership of the property changes hands. In Colorado, it is important to realize that “closing” does not mean the day the buyer signs loan documents, and it does not mean the day the lender funds the mortgage loan.

Both of those events are essential parts of the process, and both of those events absolutely must occur before the Grant Deed is released to the county recorder for recording. Understanding how much time to allow for the final closing process will help reduce some of the stress and frustration that can accompany closing an escrow.

After the appraisal of the property has been made; after all the buyer’s financial documents have been reviewed, the Loan Processor or Loan Officer will advise all parties that final approval has been obtained, and that the lender is ready to “draw docs”. The “docs” being the note and deed of trust, and all the accompanying disclosures and addendums that the buyer must sign before the lender delivers the funds. It can take up to 48 hours from the time the final approval is given until the documents are received by the Escrow Officer. The Escrow Officer will contact the buyer for an appointment to sign the documents. Buyers are well advised to sign loan documents as soon as possible! After the buyer signs the documents, the Escrow Officer will “package” them with other documents from the escrow file, such as an estimated closing statement, and return all the documents to the lender. The lender will most likely receive the documents back on the day after the buyer has signed them.

After the lender receives the signed documents back, it can take up to 72 hours for the lender to check the documents in and review them. After the lender reviews the documents to be sure they have been fully and correctly signed, the lender will issue the funds. The funds are wired by the lender to the Escrow Company. Recording of the Grant Deed is scheduled for the next business page after the funds are received.

Additionally, as stated above, in the state of Colorado an escrow is considered “closed” on the date that the Grant Deed, transferring title from seller to buyer, is recorded at the County Hall of Records. There is no closing table, and no settlement room. The Grant Deed is delivered to the County Hall of Records by a Title Insurance Representative, who waits in line at the recording window. When the Representative reaches the window, the Grant Deed is handed to the county clerk, who stamps it with a date and document number.

The Title Insurance Representative will then notify the Title Insurance Officer that the recording is completed; the Title Officer will in turn notify the Escrow Officer; and the Escrow Officer will notify buyer, seller, and agents that “We have confirmation.”When the Title Insurance Company receives confirmation of recording from their representative at the hall of records, the Title Company will wire transfer all funds they are holding from the buyer’s lender to the Escrow Company.

At that point, the Escrow Officer will begin the process of balancing the file and disbursing funds to pay off the seller’s existing mortgages, liens, and any other payments – such as a pest control company – that the Officer has been instructed to pay through escrow. The buyer becomes the legal owner of the property the day the Grant Deed is recorded. However, it is not unusual for a purchase contract to allow a seller an extra one or two days after the close of escrow to vacate the property. This be can a benefit for the buyer, since the seller will often use the extra day to make sure the home is thoroughly cleaned.