Our Escrow Services
Our mission is simple; Provide our clients with superior escrow service through quick and easy transactions, and excellent customer service.
We handle escrow services for all types of properties and businesses.
Residential Properties
Single Family Residence
The Single Family Residence or “SFR” is by far the highest percentage of type of property that is being purchased/sold. Basically they are a one-unit stand alone dwelling that is used as a residence. Owners can do whatever they want to the structure and the property itself, within established city or county guidelines.
Condominium
A Condominium (Condo) is also an SFR used as a residence, but may be attached to other units, under one roof, sharing walls. Condominiums are built as part of a condominium project and has a homeowner association (HOA) that manages common areas. Common areas are those areas outside of the living area and include walkways, parking lots, outside recreational areas.
Planned Unit Development
A Planned Unit Development (PUD) is a cross between an SFR and a Condo. It is a one-unit stand alone residential dwelling which is part of a planned development and has a homeowner association which manages common areas. Ownership is the actual unit building as well as an interest in common area. Association dues are charged for the maintenance of the common areas. Like Condos there are guidelines which limit what physical changes the owner can make to the exterior, including the color of paint of exterior walls.
Apartment Units
An Apartment is a residence that is part of a building complex under one roof which is leased/rented out and not owned by the resident. In the sale of apartment units there is a proration of rents and security deposits collected on occupied units at the close of the transaction. As a matter of record, there are complexes which start out as apartment units and then converted to condominiums. Once the process is approved and completed the individual units become eligible for sale for individual ownership.
Commercial Properties
Planned Unit Development
Standard commercial property are those that are zoned by the local government agency for commercial use only. These are properties wherein businesses operate. Rental of commercial properties are usually on a long term lease basis. The lease could include a monthly rent amount plus building insurance, maintenance and real property taxes (what we term as a “triple net” lease). Utilities are normally also paid by the tenant for their unit. Leases are prorated between Buyer and Seller at the transfer of ownership.
Commercial Condominiums
Like the residential condo, a commercial condominium is also part of a bigger condominium project and have the same standards and guidelines as residential condominiums, with the exception that its use is commercial and not residential. An Owners Association for the maintenance and care of common areas is also part of the project. The rental and sale of commercial condominiums follow the same guidelines as the standard commercial properties.
Shopping Centers
Shopping Centers are commercial units which are not owned individually but part of a larger project. Like apartment units the individual units are leased. Like commercial properties, the leases are usually long term and triple net based on the percentage of unit size to the whole complex.
Hotels/Motels
Although not “commercial” in nature, settlement agents consider hotels and motels commercial properties, even though its primary purpose is for rental as short time residences. Like apartments, hotels and motels are also single unit residences within a building complex. Unlike apartments, the rental of these units are usually short term and the units may not include the full array of rooms and extensive kitchen facilities found in apartments. There will be a proration of rents collected as of the day of transfer of ownership.
New Construction and Subdivision
After the vacant land purchase comes the subdivision of the land into separate tracts and/or lots and the finalization of new construction. Although the Escrow Officer is not involved in the process of subdivision and construction, once the finalized improvements are completed and scheduled for sale, the Escrow Officer will be a part of units’ “first sale out” if the project is a subdivision of tract homes or condominium units in a complex. The developer/Seller will designate one Escrow Company to handle the sale out of all the units.
Vacant Land
The purchase of vacant land is normally made with the intent of future development and as such, it could be much more complicated for a potential Buyer than a transaction for the purchase of an existing residential or commercial property. An experienced developer will require time to do his “due diligence” – the research of the land, government regulations and requirements, existing easements, which will affect his ability to build. Although there will not be much that the Escrow Holder can help in this due diligence, there are a few things that they should be ready to order from the insuring title company: copies of all the underlying easement documents and a map of easements plotted and color coded.
Business Opportunity Sales
Restaurants
Whether a small mom-and-pop shop or a large restaurant with many seatings the importance of going through an escrow is in the publication of the Notice to Creditors, which by statute gives the Seller’s creditors/vendors the opportunity to submit their claims for payment and thus relieve the Buyer of any demands from these creditors after they assume the business. If the restaurant has a liquor license then the transaction must go through an Escrow Holder and specific instructions followed. The transaction cannot close until the Buyer is approved for the transfer of the liquor license through California’s Department of Alcohol and Beverage Control (ABC).
Gas Stations
Gas station sales may have two components, the gas station itself and a separate auto repair section, which may be under separate ownership. For the gas station, brand sale approval must be obtained from the company for which gas brand is contracted to be sold. If the auto repair component is not included in the sale then that business could be treated as a tenant of the owner of the gas station, depending on the contractual agreements between them. Another consideration for gas stations purchasers is whether there is any ground contamination from underground facilities which will then require a Phase I, Phase II or even a Phase III survey done and/or remediation.
Personal Property Sales
Liquor License Transfers
In California the sale/transfer of a liquor license requires an Escrow Holder to act as the neutral third party under the regulations found in the Business and Professions Code. Due to the nature of the product to be sold – liquor – the laws are very specific as to who is approved to hold the license. The Department of Alcoholic and Beverage Control (ABC) holds a very firm hand in interpreting the Code. An important fact of this type of transaction is that the parties and Escrow Holder have to understand that no funds can be passed between Buyer to Seller before the license is transferred, nor can a Buyer take over the business which has such a license unless they have obtained a temporary license from ABC. This is the only license in California which is regulated by statute that an Escrow Holder has to be involved in the transfer/sale.
Manufactured Homes aka Mobile Homes
There are two types of manufactured homes and the way the transfer is handled is different. The difference is not in the type of construction of the home but whether it is permanently attached to the ground. When the manufactured home is attached permanently to the ground then it becomes part of real property, will show on the property tax rolls and the transaction is handled as a real property transfer. If the manufactured home is not attached with a permanent foundation it is then considered personal property because in theory it can be removed and put in another location. This home does not appear on the property tax roll but has a Department Motor Vehicles (DMV) license and pays an annual fee to the DMV instead of the County Tax Collector’s office. The paperwork for the transfer of this vehicle will be through the Housing and Community Development (HCD) agency.
Reach Us
We're ready to help, just let us know how.
1755 S. Grand Ave.
Glendora, CA 91740
lmartinez@goldensunsetescrows.com