Trust Escrow Services
The trust structure has been in existence for many years, but until recently it was used only to hold real estate. Trusts were created in the 1960's as a passive investment vehicle to purchase real estate portfolios. There are now over 1,000 real estate investment trusts in the United States.
The main advantage to title holding trusts is the homeowner may buy or hold property anonymously without giving up control or tax benefits. Trusts can also protect investors from lawsuits, and they may be used in estate planning.
California is one of the few states that allow land trusts, which are unique as the powers and duties of the trust are limited. Land trusts are land-ownership agreements in which the trustee holds legal and equitable title to land while the beneficiary retains the power to direct the trustee, draw income from the trust and manage the property. A land trust is created through a deed into land trust and the trust agreement. There are several advantages to a land trust over other forms of real estate ownership, including interests not subject to partition and interest that may be used as collateral to avoid probate.
Bayside Escrow has decades of experience in often complex trust purchases in California. Our trust escrow services include professional management of every detail of the trust purchase transaction to mitigate risk and allow all parties involved to do business in confidence.
We handle every aspect of the trust escrow by:
- Providing full management and action as a neutral third-party to close the real estate transaction within the guidelines set forth in the contract while serving as the depository of funds and closing costs
- Responding to all communications in a timely manner
- Keeping all involved parties informed of the escrow progress every step of the way
- Following mutual instructions expeditiously
- Preparing escrow instructions and ensuring all documents are executed properly
- Issuing receipts for deposits of funds in the trust account
- Handling of loan documents and instructions from the new lender
- Coordinating the services of a notary public
- Ensuring proper proration and adjustment of taxes, HOA dues, etc.
- Preparing and sending out the estimated and final settlement statements and HUD-1
- Instructing the Title Company to record documents, such as the Grant Deed and Deed of Trust
- Disbursing funds to proper parties and closing escrow, as authorized
- Maintaining security and accountability of funds due to principals by providing several disbursement options
- Closing escrow in accordance with mutually agreed written terms
- Ordering all applicable reports and disclosures, such as the preliminary title report and HOA documents
- Complying with city, state, and federal guidelines as applicable to the subject property
- Obtaining approval of documents and reports from all parties
- Securing payoff demands or beneficiary statements from existing lenders
- Acquiring necessary documentation to clear outstanding liens attached to the property
- Requesting demands conveyances of mortgages or the deed of trust to be paid off in escrow