Seller FAQ

1. When do I get my sale proceeds?
On the date the grant deed and other documents are recorded and escrow is "closed". Your escrow officer will prepare your proceeds check drawn on their Escrow Trust Account.

2. Why do I have to pay interest on my loan past the escrow closing date?
The payoff lender may require, in their written payoff statement, that interest on the principal payoff balance be paid through the date the payoff funds are received. Your escrow officer will send your payoff by overnight delivery to insure timely receipt and save additional interest.

3. When do I cancel my fire (homeowner's) and/or flood insurance?
It is important that you do not cancel your insurance until after the close of escrow.

4. Why does my escrow officer require that I complete a 1099-S form?
Federal law requires the escrow holder to report the seller's social security number and/or tax ID number, forwarding address and the gross sales price to the IRS. Escrow cannot be closed until the information is provided and seller certifies its accuracy to the escrow holder.

5. What is a "Statement of Information"?
The Statement of Information provides the title company with the information they need to distinguish the buyers and sellers of real property from others with similar names, thereby eliminating judgments, liens, or other matters in the public records which otherwise may affect the title to the real property.

6. What are tax prorations?
A proration is an adjustment between the buyer and seller for the payment of an item that affects real property, such as taxes. For example, taxes which are prepaid by the seller for a period during which a new owner purchases the property are reimbursed to the seller by means of a proration.

7. What will I need to bring with me when I go to sign my papers?
You will need to bring a valid driver's license, a California I.D. card, valid passport, or Military I.D. One of these forms of identification is needed by the notary public to complete the notarization of documents which you sign. If you need to bring money to close the escrow, these funds must be in the form of a cashier's check.

8. What happens if I'm an out of state seller and selling property in California?
Immediately contact your real estate agent and your escrow officer. California laws regarding withholding may apply and you may need to seek legal advice or contact the California Franchise Tax Board before the close of escrow.

9. What is a Deed of Reconveyance?
When a loan on your property which is secured by a deed of trust is paid in full, the lender issues a deed of reconveyance. When recorded it will show that the lien of the deed of trust has been released from your property.