Escrow is the part of a sales transaction where the Buyer and Seller elect a third party to temporarily hold funds and paperwork needed before a sale is finalized. When you’re ready to buy or sell a home, we will open an escrow account where the following steps take place:
- Buyer and Seller agree to terms of the sale and the offer is accepted. Buyer will submit their deposit to the escrow account holder/title company.
- If Buyer is purchasing with a loan, an appraisal will be ordered by the lender.
- Inspections may be completed to determine the current condition. If repairs are needed, they are negotiated at this time.
- Upon close of escrow, the escrow account holder/title company will collect the remaining balance of the down payment from Buyer. They will then disperse funds according to the escrow instructions put forth by Buyer and Seller, and pay out funds to Seller.
Below is a great resource for our local title company we’ve worked with in the past for Buyers and Sellers in their transactions:
- Cal-Sierra Title Company is locally owned, having been in business since 1962.
7597 Highway 89, Suite 5 (Courier)
P.O. Box 424 (US Mail)
Graeagle, CA 96103
Ph: (530) 836-0700
Fax: (530) 836-1415
FEES: WHO PAYS WHAT?
The standard custom in Plumas County is that the Buyer and Seller share equally (50/50) in the cost of escrow and title fees. While the breakdown for these fees is typical for our area, all are negotiable between offers/counter offers by either party.
-Recording Fees for Deed typically Paid By: Buyer
-Recording Fees for Deeds of Trust typically Paid By: Buyer
-Title Insurance Policy for Buyer typically Shared: 50%/50%
-Escrow Fees typically Shared: 50%/50%
-Plumas County Transfer Tax typically Paid By Seller: $1.10 per $1,000 of purchase price
-City Transfer Tax: Not applicable in all areas
-Private Transfer Fees (if applicable) Paid By: Buyer in most cases
In addition, there may be other costs related to a purchase to consider:
-Property Inspections typically Paid By: Buyer
-Property Re-inspections typically Paid By: Buyer
-Natural Hazard Disclosures typically Paid By: Seller
-Contractually Negotiated Repairs typically Paid By: Seller (or both)
-Purchase “Credits” Paid By: Seller
-Pro-rations (Taxes, HOA Dues) Paid By: Seller
-Property Liens Paid By: Seller
If the property you are buying or selling is a bank-owned foreclosure or a short sale, some of the above noted expenses may vary and are subject to negotiations by all parties.