Title Commitment

Schedule A
This is the information submitted to the Title Department by the escrow officer. It contains the basic information given to us by the Buyer or Realtor®, such as the legal description of the property, sale price, loan amount, lender, name, type of entity and/or marital status of Buyer and Seller Title Policies to be issued.

Schedule B
The Schedule B “exceptions” are items, which are tied to the subject property. These include Covenants, Conditions and Restrictions (CC&Rs), easements, homeowners’ association by-laws, leases and other items that will remain of record and transfer with the property. They are referred to as “exceptions” because the Buyer will receive a clear title “except” the Buyer’s rights will be subject to conditions in the CC&Rs, recorded easements, etc. The Buyer is asked to acknowledge receipt of the Schedule B documents, provided by the Escrow and Title Agency.

These are items that the Escrow and Title Agency needs to delete and/or record in order to provide a clear title to the property. Items that need to be addressed include:

– Current property-tax status,
– Any assessments that are owed such as those for a homeowners association,
– Any encumbrances (or liens) on the property.

Sometimes items show up against a property because another person has a name similar to an involved party. This is one reason we ask for an Identify Statement, to determine if items are inaccurate and can be deleted.

All funds deposited for the escrow must be by wire transfer.

Out of US Wire Transfers / Swift Fee: International transfers are executed through SWIFT, Society for Worldwide Interbank Financial Telecommunication, and there is an additional charge for this type of transfer.

The charge is deducted from the wired funds and from bank to bank. The charge is typically a flat rate does not exceed $100.00, so it is recommend that our clients wire an additional $100.00 when wiring from outside the U.S.

When a foreign owner gets ready to sell, they could be subject to a 10% (of the Sales Price) withholding unless the transaction is exempt from FIRPTA.

Most common residential exemption: Sales Price is not more than $300K. The buyer or a member of their family must have plans to reside at the property for at least 50% of the number of days the property is used by any person during each of the first two twelve month periods after sale.