Happy End-Of-Summer-Labor-Day!
Ready for Christmas?
YOU HAVE QUESTIONS, WE HAVE ANSWERS!
VIVA ESCROW Q & A SEGMENT
(Real questions sent to us – verbatim!)
QUESTION:
I owe my brother money and I want to pay him when I sell my property. The escrow officer refuses to do that when she closes escrow. She says it is not allowed. It is my money and I feel I can pay it to whoever I want. Why won’t she pay and will YOU be able to do so?
ANSWER:
Unfortunately, we cannot do it either. Our regulator is very specific. Payments made in a transaction have to be related to the transaction. Escrow Law and Best Practices state that only things that are necessary to complete the transaction are paid in the transaction. Payments must be specific to conditions required in the contract. We can pay for termite work on the property, home warranty, repair work costs, and loans or debts that will clean up the ownership of the property. We cannot pay someone unless it can be documented that the payment is for something that affects your transaction. Our regulator does not want to catch us acting as our clients’ bookkeeping service!
EDUCATIONAL MOMENT:
Be that as it may, if your brother gave you a loan on the property and you gave him a Promissory Note that you would pay him when you sold this property, and you can provide the Escrow Officer with the original signed Promissory Note of this obligation, then the Escrow Officer could possibly pay this loan off with your proceeds. However, I would ask you to check with your Escrow Officer for their own management policies.
Also, if you are doing a refinance and your new Lender requires that certain credit cards or loans be paid to reduce your debt, and if they give instructions on what to pay on their Lender Instructions to escrow, then we can pay.
Yes, we know that it is your money and you are able to do whatever you want with it, but only after we send it to you. Once it enters your account, you can pay anybody you want directly.
For further information, my Feb 2024 newsblog has this Think Escrow! YouTube video link regarding this topic at The catch to the disbursement of net proceeds
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~ Video of the Month ~
The Logic Map in a Happy Marriage
(This is for my hubby, Ken)
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~ Quote of the Month ~
For those of you who are a little bit nerdy:
“The fattest knight at King Arthur’s round table was Sir Cumference. He acquired his size from too much pi.”
~ Author unknown ~
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My YouTube Offering for the Month:
Sometimes we are left wondering who our Seller will be?
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You Have Questions? We Have Answers!
Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
“Escrow is my FOREMOST language!”
Advance Disclosure:
The opinions expressed in this blog are solely the author’s.
Your comments and viewpoints are always welcome.
Info @ VivaEscrow.com