| Frequently
Asked Questions |
| Escrow
Services: Frequently Asked Questions |
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Q:
Why do I pay interest from the day before closing on my
new loan?
A: The California Good Funds Law states that
all funds must be deposited with the title company the day before
recording. Interest begins to accrue from the date of deposit.
Q: If I already made my March mortgage payment, why am
I paying interest from March 1st?
A: Interest is paid in arrears.
Q: What period do property taxes cover?
A: 1st Installment taxes cover July 1st through
December 31st. 2nd Installment taxes cover January 1st through
June 30th.
Q: If my 1st Installment taxes do not have to be paid
until December 10th then why do I have to pay them at close of
escrow on November 1st?
A: The 1st Installment taxes become due November 1st
therefore they are payable at the time of close of escrow.
Q: If the termite work is not done by close of escrow
and the money must be held from the seller's proceeds do we have
to notify the new lender?
A: Yes. In order to hold funds in escrow we need
mutual instructions from both buyer and seller. Any instructions
given by the buyer must be approved by their lender.
Q: If I am not paying for the termite report, why do I
have to sign it?
A: Both buyers and sellers must sign all reports
and inspections deposited into escrow regardless of who is responsible
for payment.
Q: If the title company records first thing in the morning,
why is it that I cannot pick up my proceeds check until after
12:00?
A: Due to the large number of title companies
it takes several hours for the county to report to the title company
that the documents are confirmed recorded. The title company cannot
release funds until this confirmation is received.
Q: Why do I have to give a thumb print now? I never had
to do it before.
A: As of January 1, 1996 The Secretary of State
made a requirement that all parties executing a Deed or Deed of
Trust must provide the notary with a thumb print.
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| Frequently
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