YOUR CLOSING STATEMENT IS “IMPORTANT”: When your escrow has closed you will receive a closing statement which is a summary of the costs and financial settlement of your real estate transaction. This closing statement will be important for future tax needs and other possible considerations.

Escrow Number: The escrow number assigned to your transaction.

Reference: Gives the address of the property which is the subject of the escrow.

Closing Date: The date the documents are recorded or delivered. “Close of Escrow”.

CONSIDERATION

TOTAL CONSIDERATION: Total amount being paid for the property (sales price).
Top

DEPOSITS

DEPOSIT: Amount of funds deposited in the escrow (All deposits are detailed separately).
Top

EXISTING AND NEW ENCUMBRANCES

FIRST ENCUMBRANCE: The amount of the Buyer’s new loan.
Top

PURCHASE MONEY DEED OF TRUST: The amount of the loan being carried back by the Seller.
Top

EXISTING LOAN OF RECORD: The unpaid principal balance of the existing loan which is being assumed or taken “Subject To”.
Top

ADJUSTMENTS

RESERVE: Extra funds requested by escrow holder as a “reserve” in case any closing costs change. Any funds remaining are refunded at close of escrow.
Top

PRORATIONS

Procedure wherein monetary adjustments are made between Buyer and Seller. Items prorated are usually:

INTEREST
FIRE
FLOOD AND EARTHQUAKE INSURANCE
PROPERTY TAXES
HOMEOWNERS’ ASSOCIATION DUES
RENTBACK
Top

PAYOFF(S)

LOAN TO BE PAID OFF: The name of the lender being paid off and the unpaid “principal” balance owing on the loan.
Top

INTEREST: The rate of interest or daily interest charge and the dates the interest charge cover (Remember - loan payments you make cover the previous months’ interest).
Top

RECORDING FEE: Charged by lender to record documents with the County Recorder’s Office (ie: reconveyance).
Top

RECONVEYANCE FEE: Charge to issue a “Full Reconveyance” document which is evidence that the Deed of Trust affecting the subject property has been paid in full and that the lender and trustee no longer have any interest in the property.
Top

PREPAYMENT FEE: Penalty charge for early payoff of the loan pursuant to the terms and conditions of the note.
Top

LATE CHARGE(S): Charge assessed by lender in connection with any payment(s) received late (after grace period).
Top

STATEMENT/FORWARDING FEE: Charge by lender for the preparation of a statement setting out the loan payoff requirements.
Top

NEW LOAN CHARGES

INTEREST: The rate of interest or daily interest and the dates the interest charge covers. This expense is referred to as “prepaid interest” and usually covers interest from the date your new loan is funded to 30 days prior to your first payment due date.
Top

CREDIT REPORT: This fee covers the cost of a credit report, which shows your credit history. The lender uses the information in a credit report to help decide whether or not to approve your loan and how much money to lend you.
Top

APPRAISAL FEE: This charge pays for an appraisal report made by an appraiser.
Top

DISCOUNT POINTS: Also often called “points” or “discount points,” a loan discount is a one-time charge imposed by the lender or broker to lower the rate at which the lender or broker would otherwise offer the loan to you. Each “point” is equal to one percent of the loan amount.
Top

ORIGINATION FEE: Loan origination fee but sometimes called a “point” or “points”. It covers the lender’s administrative costs in processing the loan. Often expressed as a percentage of the loan, the fee will vary among lenders.
Top

DOCUMENT PREPARATION: Fee imposed by lender for production of Buyer’s new loan documents.
Top

TAX SERVICE: A service contract required by lender which notifies lender of any property tax delinquency during the term of the loan (impound accounts are not exempted).
Top

PROCESSING FEE: Charge imposed by lender for compiling data and information for submission to underwriter.
Top

UNDERWRITING FEE: Charge imposed by lender for the services of their underwriter.
Top

FLOOD CERTIFICATION FEE: Verification fee to determine if the property is in a flood zone.
Top

WIRE FEE: Charge imposed by lender to wire transfer your loan funds to the title company for immediate credit.
Top

MORTGAGE INSURANCE PREMIUM: Charge imposed by lender for a one year insurance premium which insures against loss due to foreclosure (generally required on loans made with a small down payment).
Top

IMPOUND FOR TAXES: Initial amount necessary to establish an account held in trust by the lender in which the borrower is required to place monthly deposits for future payment of property taxes.
Top

IMPOUNDS FOR INSURANCE: Initial amount necessary to establish an account held in trust by the lender in which the borrower is required to place monthly deposits for future payment of hazard (fire) insurance.
Top

IMPOUNDS FOR MORTGAGE INSURANCE: Initial amount necessary to establish an account held in trust by the lender in which the borrower is required to place monthly deposits for mortgage insurance.
Top

P.O.C. - PAID OUTSIDE OF CLOSING: Fees paid from the actual Lender to the Mortgage Broker outside of escrow (ie. Yield Spread Premium, Servicing Rebate, etc.). Also, fees for credit reports and appraisals paid prior to closing.
Top

DISBURSEMENTS PAID

FIRE INSURANCE: The first year’s premium for hazard insurance (may also include homeowners and/or earthquake coverage) as obtained by the Buyer and required by lender.
Top

PEST INSPECTION/WORK: Cost of a termite inspection fee and work completed, if any, per contract.
Top

HOMEOWNERS ASSOCIATION (HOA) STATEMENT FEE: Fee charged by the Homeowners’ Association to issue their statement reflecting the current status of dues paid, pending assessments and any requirements for transfer to Buyer.
Top

TRANSFER FEE: Fee assessed by the Homeowners’ Association (Condominiums) to update their records to reflect new property owner(s).
Top

DOCUMENT FEE: Fee assessed by the Homeowners’ Association (Condominiums) for providing any requested Homeowners’ Association Documents. (If Seller does not have a complete and current set of Condominium Documents, then escrow holder must request such documents from the Homeowners’ Association at the Seller’s expense).
Top

COMMISSION: The total dollar amount of the real estate broker’s sales commission, This commission is typically a percentage of the selling price of the home.
Top

CERTIFICATE OF COMPLIANCE: Fee paid to City of Los Angeles in connection with the filing of the “Water Conservation Certificate”.
Top

CITY REPORT FEE: Fee paid to City of Los Angeles, Dept. of Building & Safety to issue their report regarding permits, certificate(s) of occupancy, impact hazard glazing, etc.
Top

PROPERTY DISCLOSURE REPORT: Disclosure reports indicating whether property is located in earthquake areas, flood zone, fire area, etc.
Top

PROFESSIONAL SERVICES FEE: Fee paid to Real Estate Broker(s) for additional costs of processing paperwork.
Top

RETROFITTING: Cost for installation of smoke detectors, water heater bracing, impact hazard glazing, low flow shower heads and low flow toilets.
Top

HOME PROTECTION POLICY: Policy with varying coverage’s which may include the plumbing, electrical, heating, air conditioning, water heater, appliances, pool etc. located at the property.
Top

TITLE CHARGES

OWNERS TITLE POLICY: Charged by the title company for the Title Insurance Policy which insures title as transferred to the Buyer free and clear of all items except those provided for in the escrow.
Top

LENDERS TITLE POLICY: Charged by the title company for the Title Insurance Policy required by the Buyer’s new lender.
Top

TAXES/TITLE COMPANY: Any real property taxes which are paid through escrow.
SUB-ESCROW FEE: Charged by the title insurance company to cover their bookkeeping costs when they are required to handle money, either for the payoff of the Seller’s existing loan(s) or in the receipt of funds from the lender on the Buyer’s new loan.
Top

RECONVEYANCE FEE: Fee charged by the Trustee on the Seller’s existing loan(s) for the issuance of a Full Reconveyance which must be obtained and recorded to show the loan has been paid in full (sometimes collected by lender - see PAYOFFS).
Top

COUNTY DOCUMENTARY TRANSFER TAX: Charged by the County in which the property is located and is computed based on the sales price. (Currently $1.10 per thousand of the sales price in L.A County).
Top

CITY DOCUMENTARY TRANSFER TAX: Charged by the City in which the property is located and is computed based on the sales price. (Currently $4.50 per thousand of the sales price in the City of L.A.).
Top

RECORDING FEES: Fees charged by the County Recorder’s Office for the recordation of documents.
Top

RECON TRACKING FEE: Paid to the title company to insure that the trustee prepares reconveyances in a timely manner and files same with the County Recorder.
Top

TITLE/MESSENGER FEE: Messenger fees incurred by the title insurance company.
Top

TITLE/WIRE FEE: Cost of wiring funds for loan payoffs and/or to the escrow holder.
Top

ESCROW FEES

ESCROW FEES: The base fee charged by the escrow company for its services. Escrow fees are determined by the amount of time and liability incurred in the transaction. Fees quoted are minimum fees for a transaction and if extraordinary time is required the fee would increase accordingly.
Top

ORDER DEMAND STATEMENT: Charged for ordering, reviewing and processing of the payoff statements in connection with Seller’s existing loan(s).
Top

ORDER BENEFICIARY STATEMENT: Charged for ordering, reviewing and processing of the beneficiary statement obtained in connection with any loan(s) being assumed by the Buyer.
Top

ORDER HOA STATEMENT: Charged for ordering, reviewing and processing the statement needed from the Homeowners’ Association.
Top

LOAN TIE-IN FEE: Charged for the additional work and liability incurred by the escrow holder in complying with the requirements of the lender for the Buyer’s new loan.
Top

FEDERAL EXPRESS: Re-imbursement to escrow holder for actual Federal Express costs incurred.
Top

DOCUMENT PREPARATION: Charged for the preparation/completion of various required documents in the escrow transaction.
Top

NOTARY FEE: This fee is charged for the cost of having a person who is licensed as a notary public swear to the fact that the persons named in the documents did, in fact, sign them.
Top

MESSENGER FEE: Re-imbursement to escrow holder for actual messenger costs incurred.

 Top

Copyright © 2004 Caliber Escrow. All Rights Reserved.