Escrowing your deals - Posted by John Merchant
Posted by John Merchant on May 02, 2005 at 16:12:33:
Find a licensed, bonded and reputable stand-alone Escrow Company in your locale and talk this over with the LPO* there and they’ll probably be glad to handle these deals for you.
I’ve long used an escrow company here, as its LPO is a very sharp gal and follows my Special Escrow Instructions to the letter…even on RE loans which I’m doing.
Although I know how to do my own escrows and closings, and have in the past done some, since I’m typically a principal in any deal I’m involved with, I prefer the independent EC as they’re licensed and bonded fiduciaries and trusted by all parties to do it exactly according to the agreement you give them.
That is, in fact and law, their legal function which they normally perform very well.
*LPO is State Bar certified Limited Practice Officer, who’s authorized by the State Bar Ass’n to complete certain docs, such as deeds, D/Ts, notes, etc.
Your state probably has a similar arrangement so give your Bar Ass’n a call and see if they do so, and also ask what their website is so you can look at and choose from their approved RE forms which the LPO can then use (you too, and it’s my practice to pick and choose from our LPO forms so I can, in my Escrow Instructions, explicitly tell escrow what forms to use, what they should say, etc.
Although a time or two in the past the other guy talked me into using one of the Big Title outfits and their in-house escrow, I’ve not had very good luck with them…I’ve caught them ignoring my Escrow Instructions and had to call them on the carpet to get it fixed before closing so it was done in the exact manner I had directed.
Not a way to make friends!
In some states virtually every EC is lawyer owned and run, and those guys are quite capable…but on occasion I’ve had them try to tell me how to do my deals, and I’ve had to walk out the door and find another one.
For some reason lawyers seem to think they have all the answers, even when they really don’t have a clue…try to get one of them to admit that!