#3 - Escrow Package Summary

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Expect to receive a package in the mail from the escrow company.

While required documents will vary from transaction to transaction, the opening document package for a typical escrow is likely to include at minimum:

– Escrow Holder Acknowledgment: On this document, escrow acknowledges receipt of the purchase agreement and Joint Escrow Instructions and agrees to perform the duties of Escrow Holder.

– Statement of Information: The title insurance company will make a thorough search of the public records along with its process of examining the title to the property. The information you provide on the Statement of Information will be used to clear judgments and liens that do not directly affect you or the property. This information is confidential and will be used only to help the title company complete its work.

– Property Information Statement: Use this form to provide information about any existing loans you may have on your property and to identify your homeowner association (if applicable) for your escrow officer. Fully completing this statement will assist in the processing of your escrow.

– Affidavit of Non-Foreign Status: Your signature on this affidavit certifies that you are a U.S. Resident. Foreign persons, as defined by the Internal Revenue Service, are subject to federal tax withholding when they sell a property. To learn more about how tax withholding may affect you, consult your accountant, attorney, or the Internal Revenue Service. The website for the IRS is www.irs.gov.

– 1099-S Input Form: The information you supply on this form will be used by your escrow officer to produce IRS form 1099-S.

– California Real Estate Withholding Forms 593, 593-C and 593-E: The State of California requires tax withholding for sellers who do not meet residency requirements. Your answers to the questions on these forms will determine whether you are subject to withholding.

– Grant Deed: This important instrument will transfer the title to your property to the buyer on the day of closing. This document MUST be notarized. You may sign it with a notary of your choosing or contact escrow to schedule an appointment with their notary.

– Special Documents: If the title to your property is not held in your name as an individual (such as in a trust or corporation), or if there are unique conditions affecting your interest in the property, you may have some additional document requirements during the escrow process. Your escrow officer will advise you about these items.

Feel free to call Escrow directly for help in completing these.

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