FAQ - Escrow and Disclosure Services for Homeowner Associations

 


How much experience do you have in providing escrow and disclosure services to management companies and homeowner associations in California?

We have more than 33 years of experience and have completed thousands of successful transactions involving the sale of units/lots and loan refinance.

 

What areas do you service?

California HOA Escrow Services provides escrow and disclosure services to HOA management companies and community associations located anywhere in California.

 

If there is a lien recorded against a property, can your company prepare a lien release?

Absolutely. We will prepare the lien release and provide the sales escrow holder or real estate loan escrow holder with appropriate instructions in order to protect the interests of the homeowner association.

 

If we hire your firm, will you handle all of the communications with the real estate agents, escrow holder, and the real estate lender?

Yes. As part of our service, we handle all of the communications saving you time and money.

 

Who pays for your services?

If the escrow is a refinance escrow, the owner who is refinancing pays our fee. If the escrow is a sale escrow, the fee is payable by either the buyer or seller depending on the terms of the purchase agreement. In the majority of situations, the buyer pays our fee.

 

If we hire California HOA Escrow Services, can we receive a portion of the fee that you collect for sale and refinance escrows?

Yes. The percentage you receive will depend upon the number of units or lots in the homeowner association and other factors. Please: Request a Proposal.

 

Do you provide escrow services for commercial condominiums?

Absolutely. We provide escrow services for office condominiums, medical office condominiums, industrial condominiums, and management companies.

 

What is an escrow demand letter?

An escrow demand letter is a formal letter provided to an escrow holder from a lender or homeowner association that makes a formal demand for payment as a condition of closing a specific escrow.

In the case of a demand sent by an HOA to an escrow holder, the demand will set forth all amounts due the association including, but not limited to: (1) Regular Assessments, (2) Special Assessments, (3) Late Fees, (4) Collection Charges, (5) Interest, and (6) Fines. The demand will also provide the escrow holder all relevant dates with appropriate instructions so the escrow holder can make adjustments, accruals, and prorations.

Demand letters are generally written with an expiration date and must sometimes be updated.

 

What is the purpose of a lender's questionnaire?

The lender will not tell you this, but there are two purposes behind the lender's questionnaire. The first is to obtain information about the association and loan applicant in order to assist the lender in making a loan underwriting decision. The other purpose is to transfer risk to the person signing the lender questionnaire as well as the association. Should the borrower fail a make any future payments on the loan, the lender will examine the lender's questionnaire in order to determine if any of the information was incorrect so they can claim a material misrepresentation was made or possibly fraud. This gives them the ability to file a lawsuit against the individual signing the questionnaire and/or the association to cover them for any losses the lender may suffer including the cost of repurchasing the loan if it had been sold to an investor.

It is for this reason that it is critically important for the person signing the lender's questionnaire to exercise great care and to be accurate.

 

Do all mortgage lenders require an escrow and demand letter?

Yes. Mortgage lenders require an escrow to protect their interests. They know that title insurance companies that issue title policies to lenders and owners require an escrow. Obtaining an escrow demand from the homeowner association is an important part of that process.

 

What is the difference between a Certificate of Liability Insurance and a Declaration Page?

There are significant differences. See: Certificates of Liability Insurance - Declaration Pages.

 

What hours is California Escrow Services open?

The office is open between 9:00 am and noon and 1:00 pm and 5:30 pm. We monitor our voice mail and emails constantly and will get back to you promptly. We have no problem working late or on weekends to get the job done in order to meet any deadlines.

 

Do you have any recommendations for a company that collects delinquent homeowner association assessments?

Yes. Pacific-AssociationCollections.com, which is affiliated with our firm, collects delinquent HOA assessments and court judgments anywhere in California.

 

Can California Escrow Services provide us advice on how we should hold title to our property?

Only an attorney can provide such advice, however, we have provided educational material on this website to assist you See: Holding Title to Real Estate in California.

Holding Title to Real Estate in California

 

California HOA Escrow Services
818-991-9019