COMMON ESCROW INSTRUCTIONS
- 1. How the escrow officer will receive and hold the buyer's money for the purchase of the property?
- 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.
- 5. Instructions for paying taxes and insurance.
- 2. The specific time frame set by the buyers and sellers for the transaction to close.
- 4. The authorization for the escrow officer to distribute funds for title insurance, real estate commissions, recording fees and other costs that arise.
- 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.
ESCROW AGENT SERVICES
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.
ESCROW SERVICES
BUSINESS TRANSACTION 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.
- Obtain written evidence of proper authority for each entity to sign the purchase agreement and documents and consummate the transaction.
- Prepare settlement statements for buyer and seller reflecting all funds being handled through escrow.
- Pro-rate and pay for rent, deposits, taxes and other required expenses out of proceeds for the transaction.
- 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.
- Notify and obtain clearances from county, state and federal agencies as required.
- 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.
- Coordinate the drafting of closing documents with escrow attorney.
- Collect and disburse all closing funds according to escrow instructions.
- File and record all necessary documents with the appropriate agencies.
- 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.
- File UCC-1 financing statements with the Secretary of State when seller financing is involved.
- File Assumed Name Certificates with the state and county as necessary.
- 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-3 lien terminations and/or amendments when payoffs are involved for the seller.
- 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.
- Real estate services when real property is included in the transaction.
- Stock transfer services if the transaction is a stock sale rather than an asset sale.
- 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.
- Franchise business coordination if the business is a franchise.
- SBA and commercial loan coordination when transactions are funded by third-party loans.
- 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.
To learn more about our business transaction services and our published fee schedule, or if you are ready to open escrow, call us today.
Contact UsAs 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. AHIL 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 American Home Investment LLC. 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 miles away? Or partial deliveries over a period of 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 AHIL 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, AHIL will respect the obligations contained in the agreement and will help resolve any issues that may resolve.
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