I generally recommend that you close your escrows with title companies. They have deep pockets. If something goes wrong – if the escrow agent gets into cocaine and steals from the trust account – you will be covered.
However, there are some transactions that title companies will not close and which many independent escrow companies will not close.
They shy away from seller financing. However, if there is an attorney available to set up the escrow, they are generally willing to handle the closing.
What would escrow setup include? Writing the seller financing promissory note, writing the seller-financing deed of trust. giving necessary disclosures to buyer and seller, writing true escrow agreements under which collection agents will hold documents to be recorded later.
I am available to set escrows up. Real estate brokers who have a complex transaction come to me with purchase and sale agreements that need to be “tweaked” or revised so that all legal points are covered. Brokers earn their commissions by bringing buyer and seller together. They are marketing specialists. Their job does not include writing complex addendums that include complex seller financing and creative financing terminology. That’s where I come in.
I have an open telephone line to real estate brokers. I will listen and ask questions and take notes. I will look at the draft purchase and sale agreement. I usually will be able to quote a flat fee for doing any necessary redrafting.
My job in setting up escrows is to make sure every point is covered and the escrow will go smoothly.
I will have more to say about this topic later.
James Robert Deal, Attorney
WSBA # 8103
James at James Deal dot com
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