Home Selling in Los Angeles>Question Details

Antoinette, Home Buyer in Frazier Park, CA

my escrow closed almost a week ago and the escrow kept like $4800.00 to make sure there isn't another lien on the property for 2010 can they do that?

Asked by Antoinette, Frazier Park, CA Tue Aug 21, 2012

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9
Hello Antoinette,

It sounds like you were the seller. If you were the seller and there was an old lien on the property that you could not have reconveyed before the close of escrow, the title company could have required that amount of money be held based on a calculated formula of the original lien in order to bond the lien and issue a title policy around it.

I would recommend you investigate that lien further in order to get the reconveyance or release so you can get your proceeds released to you.

Good luck!
Judith Gottesfeld
Gibson International
0 votes Thank Flag Link Fri Aug 24, 2012
I assume you mean to say escrow is "Holding" $4,800 for possible additional Liens. Escrow is a third Party and they cannot "Keep" your funds.
Now that being said, you need to speak to escrow thru your agent to find out what this is about. Typically this kind of issue would have been identified sooner.
What type of Lien? Property Tax? Personal? Mortgage?
0 votes Thank Flag Link Tue Aug 21, 2012
The escrow does not keep any money unless instructed by a mutual agreement and understanding by Seller and Buyer. Find out the details from your escrow and agent.

Good luck!
0 votes Thank Flag Link Tue Aug 21, 2012
Escrow is (supposed to be) neutral. They don't arbitrarily do anything on their own. There is an instruction (whether something from title, a government agency, etc.) that is directing this action. Simply ask to see in writing on what basis this withholding is being made.
0 votes Thank Flag Link Tue Aug 21, 2012
You should check with your Real Estate Agent , Escrow and Title Company in regards to this matter as they should have a complete picture and understanding all terms of this transaction.


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Sergey Fednov
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0 votes Thank Flag Link Tue Aug 21, 2012
You should check with your Real Estate Agent , Escrow and Title Company in regards to this matter as they should have a complete picture and understanding all terms of this transaction.


__________________
FREE Consultation - Please call now: 424-777-9377

Should you have any questions - please do not hesitate to call me Toll Free 1-855-TRUST-55 ext.777 ( 1-855-878-7855 ext.777).


Sergey Fednov
President/Realtor
_____________________
Trust Sale Realty
Toll Free: 1-855-TRUST-55ext. 777
Toll free: 1-855-878-7855 ext. 777
Phone: 424-777-9377
Fax: 310-356-4925
http://www.TrustSale.com
http://www.TrustSaleRealty.com
* We Hire California Licensed Realtors - 100% Commission!
0 votes Thank Flag Link Tue Aug 21, 2012
Your Realtor should have the best answer as he/she has seen the paperwork. What did you agree to regarding the lien? If you financed it is unlikely that your lender let it close with a potential lien. And title generally won't issue a policy with any potential lien.

Has escrow given you and your Realtor an update? They have the money in a trust fund so it is not generally in their interest to keep your money. Sounds like there may be incomplete communication her.

Call your Realtor and/or phone escrow and ask for the closing statement.
0 votes Thank Flag Link Tue Aug 21, 2012
Were you the seller or buyer?
0 votes Thank Flag Link Tue Aug 21, 2012
seller and it was weird all around
Flag Tue Aug 21, 2012
Hi Antoinette,

That is definitely not a standard practice. The best thing for you to do is to check with the company that was used for Title Insurance, that should be specified in the Residential Purchase Agreement. Title is engaged on transactions in part to ensure that all liens are cleared prior to the transfer of title to the new owner.

Thanks
Sarah
Web Reference: http://www.sarahkosasky.com
0 votes Thank Flag Link Tue Aug 21, 2012
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