WHAT IS AN ESCROW?
The placement of papers and/or money with a third party, with the understanding that everything will be delivered when certain conditions are met.
WHAT IS "CLOSE OF ESCROW"?
This term refers to the recording of applicable documents with the County Recorders Office.
WHY IS A STATEMENT OF INFORMATION NEEDED?
A Statement of information must be completed by buyer and seller
and submitted to the title company in order to assist title insurers in the identification of persons.
WHEN DOES BUYER DEPOSIT CLOSING FUNDS?
Upon escrow holders receipt of loan documents, if applicable, escrow holder should be in a position to prepare an "Estimated Closing Statement" for the buyer to
review. Final funds needed from buyer as indicated by estimated closing statement need to be deposited with escrow number by way of a cashiers check payable to
escrow holder drawn on a State of California Bank or wire transferred directly to the bank account of escrow holder. These funds should he deposited with escrow holder no later than 48 hours prior to the close of escrow.
WHAT IS THE CALIFORNIA WITHHOLDING LAW AND FORM 593-C?
The State of California Taxation and Revenue Code requires Buyer to withhold from Sellers an amount equal to 3 1/3% of the sales price on the sale of certain California real estate properties. Sellers are required to complete form 593-C and return to
escrow holder prior to the close of escrow in order to determine withholding.
WHAT IS AN AFFIDAVIT OF NON-FOREIGN STATUS?
The Internal Revenue Service requires the Buyer to withhold tax from the Sellers proceeds if the Seller is a foreign person. This Affidavit is used to determine the status of the Seller.
WHAT IS A CERTIFICATE FOR 1099 REPORTING?
The Internal Revenue Service requires each Seller to answer questions about the nature of their sales transaction. Based on the answers to the questions, a 1099 may be required to be issued and provided to Internal Revenue Service.