The following is a brief explanation of common terms used in a Southern California Real Estate Escrow Transaction and is not intended to fully explain the subject or to be considered legal advice.

1. Escrow Company: Escrow Companies in California are either “Licensed” or “Controlled”. Licensed escrow companies are independent businesses licensed by the Department of Corporations (D.O.C.) who regulates the procedures and practices of the companies and imposes stringent requirements that sets an unparalleled standard of consumer protection and not offered by any other type of Escrow Company. Perennial Escrow is a Licensed Escrow Company. Controlled Escrow Companies are non-licensed businesses operated outside the reach of the Department of Corporations.

2. Good Funds: United States Dollars that unless wire transferred have cleared Escrow Holder’s Trust Account or Title Company’s designated account.

3. Preliminary Title Report: An initial report issued by a Title Company prior to their agreement to issue title insurance as a result of their public record research of the subject property. The research includes, but, is not limited to the owner of record, liens, easements, taxes, Covenants, Conditions and Restrictions, exceptions, etc..

4. Escrow Instructions: Supplemental instructions to the Purchase Contract which includes but is not limited to detailing Escrow Holder’s duties and general provisions.

5. Grant Deed: A legal document that is executed by the Seller and notarized. Once recorded, this document serves to convey title of the subject property to the Grantee listed on the document.

6. Recording Confirmation: Recordable documents are sent by the Title Company to the County Recorder’s office to accommodate an 8:00a.m. Recording (L.A. County). Confirmation of the actual recording varies depending on the chosen title company’s designated recording time slot for that day. The Title Company calls the Escrow Officer immediately after the documents have been successfully filed/recorded. This is the official close of escrow.

7. Funding: Buyer deposits into escrow their final “Good Funds” to Escrow Holder and if there is a new loan, Buyer’s new Lender disburses their “Good Funds” to the designated Title Company. This generally occurs (1) business day prior to the close of escrow date.

8. Contingency: An event that must occur and be satisfied before the escrow can close. For example, there can be many contingencies in a real estate transaction (i.e. loan, appraisal, physical inspection).

9. Trust Deed: A legal agreement in the form of a written document that is executed by the Trustor (Buyer) and notarized. This document secures the agreed upon terms to borrow funds which mostly establish lender’s rights to the secured real property.

10. Demand: A written explanation by the beneficiary/lien holder detailing an amount owed to them. Escrow Holder will obtain the demands on the behalf of the Seller and the Title Company will pay the demands at the close of escrow from Seller’s proceeds.

11. City Report: Certain cities require a report of residential records to be issued upon the sale of real property to determine any city imposed liens and authorization of use. Seller must complete and sign an application and pay the required fee.

12. Retrofitting: Certain cities and counties require that the subject property comply with their individual requirements regarding smoke detectors, low flow toilets and shower heads, water heater strapping, gas shut off valves (etc..) before escrow can close. A licensed contractor must verify the required condition of the property and then a certificate will be issued.

13. Natural Hazard Disclosure Reports: A report issued by an authorized vendor which discloses information about the property location relative to earthquake fault zones, fire zones and other applicable hazard zones.

14. Estimated Closing Statement: A written estimated summary prepared by escrow holder detailing debits and credits at client’s request.

15. Taxes: County of Los Angeles taxes are due on a fiscal year (06-30 to 07-01) and payable as follows: 1st half: due November 1st and delinquent December 10th. 2nd half: due March 1st and delinquent April 10th. Taxes will be paid current and prorated by Escrow Holder at close of escrow.