faq
WHAT IS ESCROW?
WHAT IS TITLE INSURANCE?
WHAT IS TITLE INSURANCE?
Escrow is a neutral third party that acts on behalf of the buyer and seller to complete the transaction once all conditions have been met. Escrow prepares the transaction documents, makes sure any unacceptable defects or claims are resolved, receives funds, process payoffs, and records the transfer documents. Escrow also responds to lende
Escrow is a neutral third party that acts on behalf of the buyer and seller to complete the transaction once all conditions have been met. Escrow prepares the transaction documents, makes sure any unacceptable defects or claims are resolved, receives funds, process payoffs, and records the transfer documents. Escrow also responds to lender requirements, obtains approvals, reports, and documents that the purchase contract requires, and prorates insurance, taxes, and rents. During the process, escrow keep all parties informed of the transaction’s progress. Escrow also facilitates the parties’ document signing. The purchase is officially complete when the new deed is recorded with the county, which formally transfers ownership from the seller to the buyer.
WHAT IS TITLE INSURANCE?
WHAT IS TITLE INSURANCE?
WHAT IS TITLE INSURANCE?
A title insurance policy is insurance that you buy with a one-time payment to a title company and lasts as long as you own the property insured by the policy. This insurance protects against previously unknown claims that may harm your property value or ownership rights.
WHAT ARE GOOD FUNDS?
WHAT IS TITLE INSURANCE?
WHAT ARE GOOD FUNDS?
Good Funds are funds that are immediately available to the title/escrow company upon deposit. Depending on the type of funds deposited, a waiting period may apply before they can be disbursed or transaction can be closed.
The Good Fund Law is intended to protect the consumers. When a party makes a deposit into escrow, there must be verific
Good Funds are funds that are immediately available to the title/escrow company upon deposit. Depending on the type of funds deposited, a waiting period may apply before they can be disbursed or transaction can be closed.
The Good Fund Law is intended to protect the consumers. When a party makes a deposit into escrow, there must be verification that the amount deposited is fully available to be disbursed at the time of closing.
Hawaii’s standard purchase contract states that closing occurs and the proceeds are to be disbursed to seller when the recording occurs.
Accepted (Bank wires / Cashier’s checks)
Personal checks or Mainland Cashier’s Checks: This may take up to 10 days in order for the checks to clear. Personal checks or Mainland Cashier’s Checks may not be used for closing funds if the closing/recording will take place within 10 days.
Not Accepted (Cash / Credit Card Payment / ACH Transfers / Money Orders)
GLOSSARY
Appraisal Fee: The fee charged by the lender for a qualified appraiser to issue a written report (appraisal) estimating a property’s fair market value.
Credit Report: A report, compiled by a credit-reporting agency, used by lenders to determine the credit-worthiness of an applicant.
Document Preparation Fee: The fee charged by the lender for preparation of loan documents.
Documentary Transfer Tax: A state tax on the sale of real property, based on the sale price or equity transferred, being $.55 for each $500 of the taxable amount in most states. Some states use $1.10 per $1,000. This tax is imposed on each recorded document in which real property is sold. (Some cities charge a similar tax as well).
Down Payment: Cash portion of the total amount, paid at the time of purchase.
Earnest Money: An amount of money, paid as part of the purchase price, which is deposited to a third party (escrow holder) by an individual who is purchasing property, and held in a trust account until the transaction is completed.
Escrow: The use of a neutral third party who carries out the wishes of the buyer and seller in a real estate closing.
FHA (Federal Housing Administration): An agency of the U.S. Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting, but does not lend money or plan or construct housing.
Homeowners Association (HOA): (1) An association of people who own homes in a given area, formed for the purpose of improving or maintaining the quality of the area. (2) An association formed by the builder of condominiums or planned developments, and required by statute in some states. The builder’s participation as well as the duties of the association is controlled by statute.
- HOA Document Fee: Fee charged to the seller by the HOA for supplying copies of HOA documents, such as covenants, conditions & restriction, financials, etc.
- HOA Transfer Fee: Fee charged to the seller by the HOA, when a property is sold and title is transferred to a new owner.
Homeowner’s Insurance: An insurance policy that covers the property and contents of an individual home.
Mortgage Insurance: Insures the lender against loss caused by the borrower’s failure to make loan payments.
Notary: An individual who is authorized by the state or federal government to administer oaths, and to attest to the authenticity of signatures.
Property Taxes: A tax levied on real property based on the value of the property.
Real Estate Broker Fees (Commission): Broker compensation, typically paid by the seller, for services rendered.
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