Residential Resale

Definition: The act of buying or selling a previously owned home.

The role of escrow in the sale or purchase of a previously owned home is to ensure the following steps and requirements are met by all parties involved in the real estate contract:

• Both the Buyer and Seller complete all forms and instructions necessary to complete the transaction, including documentations required by federal, state and local governments.

• The Buyer deposits funds sufficient to meet the total sales price plus costs. (Usually, some of the funds are obtained through new lender financing, although Buyers sometimes assume the Seller's current loan, obtain financing directly from the Seller or pay all cash.)

• The Buyer furnishes any documentation required by the new lender, such as evidence of new fire insurance coverage for the property.

• The Seller deposits a deed to the property in favor of the Buyer. (This is generally prepared by escrow.)

• The Seller furnishes all required disclosure reports and the governing documents of any applicable Homeowners Associations.

• The new lender deposits loan proceeds.

Once all conditions of the escrow have been met, the deed is recorded to transfer the ownership interest in the property to the Buyer (other documents may also be recorded at this time, including a trust deed, which is the lender’s security document), and net proceeds are paid to the Sellers.

Choosing an escrow company that will treat your closing with personal attention and the highest level of customer service is a crucial component of your timely closing. Your Escrow Officer must meet every deadline and understand each factor in your transaction. Clarity Escrow understands that every residential resale has its own unique combination of circumstances, and our Escrow Officers possess the education and experience to overcome both the anticipated and unforeseen challenges.

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New Home Sales

Definition: The act of buying a house, directly from the Builder, that is currently in the process of being built or has recently been constructed.

The purchase of a new home is very different from that of a previously owned home. First and foremost, the Builder of your home has already contracted with an escrow company that they trust to handle the close of every Buyer’s transaction. In turn, the Buyer receives the benefit of an established business relationship: an informed Escrow Officer who is well-versed in both the specialized arena of new developments, and the standard procedures and practices of a particular Builder, which helps to streamline the entire process. Our Builder Services Division manages all aspects of the home building escrow process and maintains a substantial escrow staff to handle heavy-volume closings and Builder deadlines.

Clarity Escrow maintains a solid reputation among Builders and holds a proven track record of helping them meet their everyday business challenges. Members of this specialized division are experts in the new home market, active members of the Building Industry Association and other industry organizations. We provide attention to detail and professional service for both the Builder and Buyer.

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Investment Properties

Definition: A property that is not occupied by the owner, usually purchased specifically to generate a profit through rental income and/or capital gains.

Investment Properties commonly fall under the umbrella of commercial/industrial real estate due to a large interest in office buildings, regional malls, multi-family apartment communities, and grocery and drug store anchored shopping centers.

An investment in Real Estate is a common source of income for many people and a 1031 Exchange, in which Capital Gains taxes can be deferred, is often sought by Sellers of investment properties. Should you be interested in further understanding the requirements of a 1031 Exchange, please consult your accountant and request information on The Property Exchange Corporation (PEC) from our corporate office. The Property Exchange Corporation is a Qualified Intermediary providing services on behalf of the taxpayer in an exchange transaction. The PEC Administrator will complete the necessary documentation, track the imposed deadlines and maintain an accounting of the overall exchange process.

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Refinances

Definition: To replace an existing mortgage loan with new financing.
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Refinancing involves the payoff of an existing loan with the proceeds from a new loan, using the same property as collateral. In order to decide whether this is worthwhile, the savings in interest must be weighed against the fees associated with refinancing. Additional reasons to refinance include reducing the term of a longer mortgage, replacing an adjustable rate loan with a fixed-rate loan or withdrawing cash equity in real property by obtaining a larger new loan.

The process of refinancing can sometimes be a problematic and cumbersome endeavor that requires innovative problem solving and timely follow-up. Leading financial institutions trust Heritage Escrow to process refinance transactions for their customers.

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