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Real Property Escrows

Brings together and coordinates all aspects of a Real Estate transaction.  This gets more complicated each year, ie: State and local tax issues, title, lender, realtors, home warranty, termite, etc… and then, when everyone else has completed their job, the escrow officer closes the escrow (and pays everyone!!).

 

1031 Exchanges

Investment property may be exchanged for other Like-Kind property and the tax deferred under Internal Revenue Code Section 1031. 

 

Personal Property

Used for items such as those purchased on auction sites, automobiles, motorcycles, domain names, jewelry, specialized computer equipment, industrial equipment, or other expensive items.
Especially If you do not know the other party involved in the transaction, and the purchase can not be inspected beforehand.
Provides Protection for both Buyer and Seller; The Buyer receive and inspect the merchandise before the Seller is paid.
The Seller receives their money once the Buyer accepts the merchandise.

 

Bulk Sale Escrow

Sale of Business and Business assets.


1031 Exchanges

Investment property may be exchanged for other Like-Kind property and the tax deferred under Internal Revenue Code Section 1031. 

 

"In a 1031 real property exchange you can exchange any real property for any other real property within the United States or its possession IF said property(ies) are held for productive use in business or trade or for investment purposes." 

 

Like-Kind properties can be;   commercial, duplexes, rental homes, vacation homes, empty land, and second homes.

Your personal residence may not be included.

 

 

The Bulk Sale Escrow Process

 

The sale of a business is different from the sale of Real Estate because a business is defined as personal property. The Bulk Sale Code contained in the Uniform Commercial Code of California governs the escrow process for businesses.

 

The Bulk Sale Code requires the publication of a required Notice to Creditors for a mandatory minimum publication period.  The close of escrow must take place ON OR AFTER the date specified on the Notice.

 

The escrow instructions and all necessary documents, including the Notice to Creditors, are all prepared at the beginning of the escrow.  These documents must be signed by all parties and delivered into escrow along with a check from the buyer and/or seller for the initial deposit, which must include escrow fees and funds for payment of up front expenses for publication and filing fees, etc., BEFORE the Notice to Creditors is recorded or published.

 

The Uniform Commercial Code of California requires that all monies in a bulk sale, including sales price and inventory of stock in trade, must pass through escrow and requires that no funds are released to the seller prior to the close of escrow.

 

  1. The Bulk Sale Escrow Process:

  2. Provide terms of the sale and other required information to the escrow officer

  3. Escrow Officer prepares escrow instructions and documents for signature

  4. Executed escrow Instructions and documents are returned to escrow

  5. Publish and file Notice to Creditors and other applicable documents

  6. Escrow officer requests releases/clearances from State Agencies

  7. Escrow officer requests State and County Lien Searches

  8. Clearances and/or Claims received and acknowledged

  9. Escrow officer prepares final amendment and requests final deposit of documents and funds

  10. Claims period ends

  11. If a liquor license is involved, escrow cannot close until the license is transferred by A.B.C. before closing.

  12. Escrow closes

This represents a general overview of the Bulk Sale escrow process.   Each business sale is unique. 

 

 

Copyright © 2005-2007,  Beach Pacific Escrow, Inc.