Deed Of Trust | Escrow instructions
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Due to the fact that escrow usually involves the transfer of an investment in land, all conditions regarding the transfer need to be in writing. That being said, the following is a list of the criteria that is required to be stated within the escrow instructions:
- Name of the escrow agent, third party or depository.
- Names of both the buyer and seller as well as their proper title (ex: joint partnership, corporation, individual person, and so on).
- A legal description of the property that is to be transferred.
- The price at which the property was purchased.
- Set conditions in regards to transfer and payment.
- Distribution of cost, insurance costs, taxes and assessment.
- The signature of both the seller and buyer.
All of the transaction details, including the agreement made by the seller and buyer, need to be written in the escrow instructions so that it is clearly understood by all parties involved. Even promises made orally should be written down.
When the instructions have been completed, it is then important for the investor to read the preliminary title report more than once to ensure that everything is understood and nothing has been overlooked or missing. The investor (you) should also check and see that the trust deeds and notes, as well as the amount of indebtedness are all in proper order.
If the investor has the first deed of trust, then there will be no other lien before theirs. Furthermore, the investor should also make it a point to ask questions in the event they discover certain wording or restrictions they fail to comprehend. Should this occur, the investor should ask the escrow agent to produce copies of the listed documents in the title report. As an investor, you should never feel embarrassed to ask questions. Remember, only through asking questions will you learn all the facts of purchasing a trust deed.
Related posts:
- Trust Deed Escrows
- Loan Documents | Different Note Types
- Trust Deed | Title Insurance Policy
- Trust Deeds Notes Information
- What Secures A Trust Deed Investment ?
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