What is Escrow?
My clients that are buying and selling homes in the Corvallis and Albany areas frequently, ask ”What is escrow? 
In general, “escrow” is the neutral third party that holds instruments (deeds or other documents that convey ownership); funds (or other items of value); or evidence of title for real or personal property. In Oregon, the escrow agent is typcially a Title Insurance Company (but this does not always have to be the case).
In a real estate transaction, “escrow” is the neutral third party that holds the deeds, collects and disburses the funds and follows instructions on behalf of the parties to the transaction.
It is the function of escrow in a real estate purchase transaction to make sure that all the instructions (which are really the terms of the sales agreement and the lend, er instructions) are followed; that all bills are paid (through the instruction of the buyer, the seller or the lender) and that funds are disbursed (lender loan proceeds, seller’s proceeds and any excess monies deposited by the buyer to the buyer).
Escrow follows the instructions of the parties to the transaction to determine how proration of taxes and other re-occuring charges such as homeowner association fees are handled. Escrow also makes sure that appropriate parties such as taxing authorities, homeowners associations, water districts and so forth are notified when there is a change of ownership. Escrow does not typically notifiy public utilites of changes of ownership. An owner that is selling should notify their hazard/homeowners insurance of the sale (but not until the sale is completed and the sellers proceeds are disbursed.)
Escrow is also responsible by law for the collecting of information and reporting of sales information to the state and federal government in the event of a possible income tax liability on the part of the seller of real estate. It’s important that sellers and buyers understand the tax ramifications of their transactions prior to closing. Escrow will send out questionnaires to be completed early in the process to help alleviate problems that can arise from tax consequences of a sale (such as FIRPTA and State and Federal witholding requirements), if for some reason you do not receive paperwork from the escrow company early in your transaction, you will want to check on it.
Escrow is not allowed to act independently. In general, once a buyer’s earnest money deposit is “in escrow” escrow cannot release those funds without express instructions from all parties. Escrow is not allowed to proceed with finalizing or cancelling a transaction without instructions from all parties. If there is a dispute that arises from disagreements from any of the parties to the transaction, escrow must wait for instructions between the parties that are consistent before they act upon them.
It’s important the that escrow agent: be finanacially responsible (and have financial strength); have expertise in handing complex transactions; act in a manner to assure that payment of liens and other encumbrances is accomplished; provide single point of contact for coordination of flow of documents and funds; remains an impartial third party.
If you need more information or have specific questions I can answer, please get in touch. Contact Dava
NEW PRICE! HOME FOR SALE — 2075 Dawnwood Drive, Philomath, Oregon $565,000
Home for Sale — 2075 Dawnwood Drive, Philomath, Oregon
Great Design and High Style exemplify the qualities of this newer home. Located on just over two acres, it’s quiet and peaceful here, easy care, beautiful and efficient. Custom built, thoughtfully designed and beautifully finished with a high level of attention to detail. Conveniently located on the eastern edge of Philomath, with easy access to Oregon State University, Corvallis and Philomath. Nearby recreation opportunities including nature trails at the Bald Hill Natural area and local bike paths.
3 bedrooms, 2.5 baths, Great room style living, Beautiful views, Gas forced air and central A/C. Approx. 2749 sq. ft., 2.15 acres, Year built 2007, Philomath Schools
Great-Room Living and Dining Room:
Beautiful maple floors, vaulted ceilings, skylights and ceiling fan, Craftsman style fir entry door with stained glass inset and matching sidelights. Double French door with full size side lights provides access to decks. Beautiful built-in entertainment center, bookcase , and tiled wood-stove alcove with wood storage area houses zero clearance woodstove with automatic blowers, designed to heat the whole house, and generous amounts of indirect lighting.
Kitchen:
Beech kitchen cabinets some with glass front display doors, high-end KitchenAid appliances, gas cook-top with hood, microwave and wall oven (with convection), Maple floors, antiqued granite counter-tops, raised breakfast bar with pendant lighting, adjacent to dining area and features a large walk-in pantry. There is a granite topped desk-kitchen planning area with adjacent built-in cabinet/bookshelf unit
Powder Bath:
Located just off the great room is spacious and features a pedestal sink and tile flooring that continues about a foot up the wall made of iridescent Italian glass tile that shimmers like gems and resembles the surface of water
Master Suite:
Spacious and light, provides a true luxury spa-like experience. Maple flooring in the bedroom, indirect lighting, huge walk-in closet (one might consider adding a small office/desk space in this area). There is French door access to deck from bedroom. The master bath has tile flooring, an oversize tile shower with marble shower floor, a double sink vanity with antiqued granite top, jetted tub and an alcove over the tub with glass shelving and French door access to deck
Additional Bedrooms:
Secondary/Guest bedrooms are served by a shared by a “Jack-n-Jill” bath arrangement. Both bedrooms are spacious and provide generous amounts of closet space. One bedroom features a built-in shelf unit and the other features access via French doors to the deck
area. The adjacent bath features a tub/shower combination; a large vanity with antiqued granite counter-top and tile flooring
Laundry:
Large laundry room provides generous amount of cabinet space, a utility sink, tile floor and access through mud-room to the
garage
Mud Room:
The ideal place to unload gear, slip off shoes and transition into peaceful living. There is access to this room directly from the garage or from outside. It features a craftsman style fir door with stained glass insert and stained concrete flooring
Back Deck:
Spacious (estimated at 1300sf) is accessed from both master suite and great room and one secondary bedroom, most of the deck is covered by deep eaves allowing for all season enjoyment, wire rails allow better views when seated. The deck overlooks and provides access to backyard
Yard areas:
Grassy/natural area off back deck, wooded area to the side and back of the property, seasonal creek. Driveway is paved with generous amounts of parking/turn around area. The front porch and walk-way adjacent to the house is stamped, stained concrete.
Misc.:
- Timber deferred taxes
- 8’ interior doors (all except pantry)
- Wired with cat 5e network from multi-media panel
- cabling to all rooms
- Wired and plumbed for future solar hot water if desired
- 2 car attached finished garage with openers
- Wired with cat 5e network from a multi-media panel cabling to all rooms
- Fiber optic (3 pairs) computer network (to 2081 Dawnwood) with 100 megabit adapters (expandable to 10 gigabit and higher) plus 4 pair of copper for telephone/intercom and 2 coax for video. The fiber is encased in a metal sheath with 2 redundant pairs of fiber stands
- Process for antiquing granite: Granite is acid-etched to replicate river stone, then hand-polished & sealed
- Gas forced air heat and central a/c
MLS #641105
Search for more homes for sale in Corvallis here.
Selling Your Home: How to Prepare for a Home Inspection
How to prepare for your home inspection:
Being prepared for your home inspection will make the process much smoother for you, the buyer and the inspector. When an inspector cannot access essential components of the home, it often makes the process take longer and can add to the cost. Lack of preparedness that results in additional trips for the inspector can be costly to the seller and can delay the process or even cause your transaction to fall apart.The following is a list of items that will help your home inspection move along smoothly:
- Access to Attic: The inspector will need to get into the attic; or at least view the attic from the access opening. If the access panel is in a closet, please remove all personal property (clothing, boxes, etc.), hanging rods, and/or shelving that would prevent the inspector from safely entering the access. If the access panel is secured with nails or screws, please remove these. If a panel is painted shut, the inspector will not try to move the panel as this may damage the painted areas. The inspector will not move personal items nor remove securing screws or nails to gain access to the attic.
- Access to the Crawlspace: The inspector will need to get into the crawl area beneath the structure (if present). If the access hatch is in a closet, please remove all personal property (clothing, boxes, etc.), hanging rods, and/or shelving that would prevent the inspector from safely entering the crawlspace. If the access hatch is secured to the floor with nails or screws, please remove these. If a panel is painted shut, the inspector will not try to move the panel as this may damage the painted areas.
- Electrical Panel: The inspector will be removing the main and sub-panel covers and inspecting the wiring inside. Please move any items that are in front of the panel. NEC code requires a clear area of 3 ft. in front of and 30 inches to both sides of the panels. The main and sub-panel power supply should be turned on. Inspector will not switch breakers on-off (except GFCI).
- Computers: The inspector will be tripping all G.F.C.I. breakers and/or outlets, also sometimes when removing the panel cover, a breaker is accidentally switched off. We recommend that any programs being run be saved and all computers and peripherals shut down.
- Dishwasher, Microwave & Oven: They will not be operated unless empty. If any appliance is known to be defective, please inform the inspector and it will be deferred for a service technician to evaluate.
- Pets: Please make arrangements to have your pets (including cats) out of the inspector’s way. The inspector will need to look at all sides (in and out) of the house, garage, basement, and closets. Either leave them with a friend/neighbor or kennel them. Inspector will not enter a property if pets are loose. Cats sometimes have a desire for the outdoors and will slip past an inspector when opening and closing doors. Inspector is not responsible for animals that have escaped during an inspection.
- Gas Appliances: (Furnaces, Fireplaces and Water Heaters): Please remove all personal items, etc. from in front of the service panels of these appliances so that the inspector can safely inspect them. Have gas turned on to the appliances and pilot lights lit. Inspector will not turn gas valves on-off nor ignite pilot lights.Plumbing: Water should be turned on at the main valve and to all plumbing fixtures for the inspection. Water valves will not be turned on-off by the inspector.
- Buyers: Normally the buyer(s) will be present during the inspection. We ask that seller leave the property during the inspection.
- Minor Children: Any children under 18 must have an adult present. Again, for liability purposes, we ask that only the inspector, buyer, and respective real estate agent be at the property during the inspection.
It may also be a good idea to leave notes if there are specific items that are unique and/or unusual about your property (hidden access hatches, specialty items etc.) and contact information for the listing broker and/or the seller in the event of an emergency or questions that can be resolved quickly over the phone.
This list was provided by Matt Waddell of AmeriSpec Home Inspection Services. Thanks Matt!
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Important Items To Look For In A Home Inspection
Important Items to Look for In a Home Inspection
For Buyers and Sellers
Home inspections can vary from simple one page check lists to extensive multi-page documents. When evaluating written reports and/or selecting an inspector based on the report produced, there are several
important factors to consider:
- What is the scope of the inspection; what systems, fixtures, and components are inspected? Does the report include general information to improve the reader’s overall knowledge about the property in addition to reporting problems? How much of the property is inspected? Is there a systematic approach to the inspection? Knowing what is included in the inspection report is key to knowing if the inspection is thorough. Obtaining information about the status of all components (those in good condition as well as those needing attention) provides you with a benchmark of condition for ongoing maintenance.
- Is the report easy to read? Is the layout straightforward and is redundancy avoided? Is there a summary that supports the details? Are the items numbered and in categories that are easy to follow? A report that’s easy to read and identifies items by category and/or room as well as numbers makes communication with others regarding the findings easier.
- How detailed is the report? Does it include photographs of the findings? A picture paints a thousand words. Photographs make it easier to understand items included in the report.
- Is an electronic version of the report provided? Frequently the report needs to be distributed to others in order to work through negotiations and contractor evaluations. A report that’s easy to forward on to others streamlines those processes.
- How quickly will the report be provided? Often times there are tight time lines associated with negotiation of inspection related items. Prompt delivery of the inspection is an essential element of the inspection process.
- Does the report “package” include items of added value? Some inspectors provide coupons, home
maintenance checklists and simple home repair guides as added value to their reports. - Is the inspector available to answer questions after the fact? Being able to communicate with the inspector about the specifics of the report and clarification of findings helps simplify the corrective action process.
How Would You Spend Your Tax Credit?
How Would You Spend Your Tax Credit?
COLDWELL BANKER REAL ESTATE STUDY FINDS CONSUMERS’ ANTICIPATED ‘SMART SPENDING’ OF HOMEBUYER TAX CREDIT WILL AID ECONOMIC RECOVERY
83 Percent of Current Homeowners Surveyed Say They Would Spend Tax Credit on Repaying Existing Debts, Home Improvements, Savings/Investments and Household Expenses
Coldwell Banker Real Estate LLC today announced the findings from a new survey that looked at how the recently expanded federal homebuyer tax credit, which opened up the credit to existing homeowners, might impact the economy. Of the more than 1,000 homeowners surveyed, 83 percent responded that if they were to purchase a home and qualify for the tax credit, they would engage in “smart spending” or put the money toward paying off existing debts, home improvements, savings/investments, or everyday household expenses. Only 6 percent of respondents indicated that they would spend the money on what are commonly referred to as luxury items such as a vacation or a shopping spree.
According to the survey, the top way homeowners would spend their $6,500 tax credit in a “smart” way would be to pay off debts (34 percent), followed closely by making home improvements (29 percent) and putting it into savings and investments (28 percent).
In addition, Coldwell Banker Real Estate found that 20 percent of homeowners indicated they were more likely to consider purchasing a home than they were six months ago, after learning about the $6,500 federal tax credit. The tax credit, which previously only was for first-time homebuyers, is now available to existing homeowners who sign a binding contract before April 30, 2010 and close on the purchase of a home before June 30, 2010. To learn more about the details of the expanded homebuyer tax credit, go to www.coldwellbanker.com
If you’re considering purchasing a home in Corvallis, Albany, Lebanon or Philomath (and surrounding areas of the mid-Willamette Valley); I’d like to help you meet your goals. I work with buyers and sellers at all price levels. Please get in touch and we can get started today.
Other resources for information about the tax credit:
National Association of Realtors frequently asked questions about the tax credit
I.R.S. information abut the tax credit
Coming Soon | 3 Bedrooms | 2.5 Baths | $257,000
I have a new listing coming on the market very shortly and just wanted to let everyone know about it before it gets here!
Spacious and clean Philomath home with amazing views of Mary’s Peak and the rest of the Coast Range. Landscaped yard with underground automatic sprinklers and trickling stream water feature. Large open living area with westward facing balcony to take advantage of those wonderful views! 3 bedrooms, 2.5 baths, approximately 1843 sq. ft. on .38 acres. Take advantage of the extended first time home buyer/expanded buyer tax credit.
Located just of west of Corvallis and easy commute to Corvallis employment, including Oregon State University)
J.D. POWER AND ASSOCIATES RANKS COLDWELL BANKER HIGHEST IN HOME SELLER SATISFACTION
J.D. POWER AND ASSOCIATES RANKS COLDWELL BANKER HIGHEST IN HOME SELLER SATISFACTION
Coldwell Banker Real Estate LLC ranked “Highest among Overall Satisfaction for Home Sellers among National Full Service Real Estate Firms” according to the recently released J.D. Power and Associates 2009 Home Buyer/Seller StudySM.
The independently administered study measured customer satisfaction of homebuyers and sellers among the largest national real estate firms. The study incorporates more than 3,100 evaluations from 2,801 respondents who bought or sold a home between April 2008 and June 2009. The survey was fielded between April and June 2009.
J.D. Power and Associates examined four factors in the home-selling experience including agent; marketing; office; and package of additional services. Among home sellers, Coldwell Banker Real Estate ranked highest with a score of 815.
Complete results for the study.
When you work with Coldwell Banker Real Estate, you will be working with a brand:
- That has built a legacy of being an industry leader;
- That has a commitment to innovation;
- That has a network of experienced and extremely successful Sales Associates, ready and willing to help you through any step of your real estate buying or selling process.
Source: http://www.jdpower.com/corporate/news/releases/pressrelease.aspx?ID=2009136
House of Representatives Approves Tax Credit | Bill Signed by President
Update: Bill signed into law by President Obama this morning. 11/06/2009
Now, it’s on to President Obama for signature in the next few days.
Here’s a chart of the differences between the existing tax credit and the revised (primarily there’s provisions not just for First Time Homebuyers but also for those that have owned a home and are purchasing a replacement property.) There are many fine points to the changed tax rules. It is in your best interest to get advice from qualified tax professionals and understanding your options in relation to these “new” tax guidelines.
The Home-buyer Credit is an amendment (S. A. 2712) to the Unemployment Compensation Extension Act (H.R. 3548)
(click on chart for a larger view or use your zoom tool on your browser)
This should prove to be very helpful for buyers and sellers in the Corvallis, Oregon and surrounding markets of Albany, Oregon; Philomath, Oregon; Lebanaon, Oregon and Linn and Benton County by creting movement throughout the market, not just in the “first time homebuyer” segment.
Senate Passes Homebuyer Tax Credit…
Today the US Senate passed the Homebuyer Tax Credit witha 98 to 0 vote. The credit is included in the Unemployment Bill. In order for it to be effective The house must still pass this legislation and then President Obama must sign it into law. It is generally expected to be to The President by the end of the week.
In essence, the bill extends the $8,000 first-time homebuyer credit through April 30, 2010 and provides a $6,500 credit to new purchasers who have lived in their current residence for five or more years.
In Corvallis, Albany and Philomath, this should help create movement in the housing market by assisting the mid-range of the market to move-up into the currently slow upper range; assisting owners of lower cost “entry level” homes to move into the mid-range; thus, freeing up entry level housing for first time homebuyers.
Exciting news for the real estate industry in Oregon; and good news for buyers and sellers in Corvallis, Albany and the surrounding communities in the Willamette Valley of Oregon.
The extension was expected in late October, but has been slow in coming…
“People are going to wonder, how is it, that something that is just common sense and fairness should take so long to make its way through the United States Congress,”‘ Oregon Sen. Ron Wyden said after the vote.
Key Provisions of the Bill Follow (Provided by Teresa “Terry” Estergard, Wells Fargo Bank):
HOMEBUYER TAX CREDIT SUMMARY
S.A. 2712 would:
- Extend through April 30, 2010 the tax credit for first-time homebuyers (up to $8,000 or up to 10 percent of the purchase price of the residence), allowing 60 days to close, provided that the homes are under a binding contract by that date;
- Provide homebuyer tax credit of up to $6,500 to owners who have been in the same principal residence for five consecutive years during the previous eight years;
- Increase the income limitations to $125,000 for individuals and $225,000 for joint filers;
- Phase out the credit for individuals with incomes above $125,000 for individuals and $225,000 for joint filers at the same rate as current law (over the next $20,000);
- Limit the credit to purchases of principal residences equal to or less than $800,000;
- Eliminate the 36-month recapture requirement for military personnel, including members of the Foreign Service and intelligence community, forced to sell as a result of an official extended duty of service; and
Extend the tax credit for one year for military personnel serving outside the United States for at least 90 days in 2009 or 2010. - S.A. 2712 would also include anti-fraud language. The measure would not extend the credit to taxpayers under the age of 18 on the date of purchase unless that person is married to a taxpayer above the age of 18. The amendment would also require a properly executed copy of the settlement statement to be attached to the tax return. Moreover, the substitute would expand the restriction on a residence acquired from a family member to include a residence acquired from a spouse’s family member.
- S.A. 2712 would also extend math and clerical error authority to the Internal Revenue Service.
Breaking News | First Time Homebuyers and others
There was a lot of chatter on the news (and real estate blog sites and on-line news posts) yesterday and this morning about extending and possibly expanding the (first time home buyer) tax credit. Most news reports did not make it clear that the agreement reached by Senate leadership has not found its way into an existing bill or a stand alone bill. That may be resolved today. Once a bill passes the Senate, it still must go to the House for concurrence; and then has to be signed into law by the President. In other words, any action has a long way to go before it becomes law. The action in the Senate yesterday was good news and significant; however, this is not yet a done deal. If you support extending and/or expanding the tax credit, now is the time to contact your senators and congressmen to let them know how you feel.
A side note: Jobs are important; statistically every home transaction brings into the local community approximately $63,000. That movement of money can help improve the local economy.
Agree or disagree, this is an important issue for Real Estate Agents and those concerned with the Corvallis, Albany and Mid-Willamette Valley market.
If some form of this bill passes, I would expect to see some movement of Buyers and Sellers in the Corvallis, Oregon and Albany, Oregon markets. More first-time home buyers will have time to enter the market, and the move-up buyer will be in a better position to purchase in the Luxury Home Market; creating demand at all levels.
To get in touch with (or find out who they are) your elected officials you may want to visit Senate.gov or your Congressman at House.gov
Related articles:
Equal Housing Opportunity. Each Office Is Independently Owned and Operated.