Escrow News

What is an escrow and how does it benefit me?

what is escow

Escrow is an arrangement in which transacting parties retain a third party, an escrow agent or escrowee, whose job is to safeguard funds and assets according to conditions that have been agreed upon in advance. Such an arrangement protects the transacting parties in the deal, providing that neither has an unfair advantage and that both are earnest about the deal.

Using Escrow in a Private Placement Memorandum

Using Escrow in a Private Placement Memorandum

A private placement memorandum (PPM) or offering memorandum (OM) is the document used in a private offering of securities to a small number of uniquely qualified investors. Also known as an offering circular (OC), a PPM is typically used by a company to raise capital and avoid using debt or a traditional public offering.

Impound Escrow Accounts – Easier for Buyers and Lenders

What is an impound escrow account?

An impound escrow account is set up for a real estate mortgage loan to pay certain property-related expenses such as private mortgage insurance, homeowner’s insurance and property taxes.  Frequently, lenders require these impounds to be paid with the borrower’s monthly loan payment.  Often, loan regulations require impounds to be set up for a mortgage loan collateralized by

Section 1031: Vital to Pro-Growth Tax Reform

As Congress considers tax reform and potential areas of revision to the U.S. tax code, a section of the code that ought to be preserved is Section 1031,

Loan Servicing for Owner Carry Loans

Owner Carry Loans

It may come as a surprise to many that around 20% of home sales in the U.S. involve some form of an "owner-carry loan." Also called “seller financing” or “owner financing,” the term refers to the notion of a buyer of a property directly paying the

Five Questions to Ask When Selecting an Escrow Company

Five Questions to Ask When Selecting an Escrow Company

Choosing an escrow company to manage your escrow transaction requires some due diligence. An escrow is set up to protect all parties involved in a given transaction, and prior to signing a contract, it’s a good practice to verify the expertise, level of security and standards of customer service that you expect from the company that will be facilitating your escrow arrangement. 

There are many states that do not require the registration or licensure of escrow agents.  Knowing how and where your escrow funds, documents and proprietary information are being held is critical. The safety and security of funds through timely confirmation and verification of funds through electronic banking is a must for cash holding and loan servicing escrows.  Authentication of secure depositories for digital and software source code escrows in a secure environment is paramount.   

Accruit Expands Services, Acquires Bankers Escrow Corporation

Bankers Escrow

Accruit, LLC, the nation’s leading provider of qualified intermediary and 1031 like-kind exchange program solutions, today announced a definitive agreement to acquire all of the assets of Bankers Escrow Corporation, one of the largest full service escrow companies in Colorado.  The parties anticipate a closing on June 30, 2016. Going forward, services will be provided under Accruit-owned Bankers Escrow, LLC.

Is Your 1031 Exchange Straddling Two Tax Years?

Most users of Section 1031 understand the 180-calendar day deadline to complete their like-kind exchange.  This general understanding of the exchange period deadline is fine for most transactions, but many exchangers remain unaware of the more nuanced definition of this critical period.

What are Valid 1031 Exchange Selling Expenses?

August 2016

When selling or purchasing an investment property in a 1031 exchange, certain selling expenses paid out of the sales or 1031 exchange proceeds    will result in a taxable event for the exchanger.  Routine selling expenses such as broker commissions or title closing fees will not create a tax liability.  Operating expenses paid at closing from 1031 proceeds will create a tax liability for the exchanger. 

Those Tricky 45 Day Identification Rules

March 2016

          1031 Exchange IRS regulations require that replacement property acquired in a 1031 Exchange be properly identified during the first 45 calendar days after an exchanger sells their old relinquished property.  The identification must be unambiguous, in writing, signed by the taxpayer, and delivered by the deadline to the taxpayer’s Qualified Intermediary or to another “non-disqualified party,” having the responsibility to deliver the Replacement Property to the exchanger.   


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