Title Company Questions and Payments

When selling your home, navigating the details of title company procedures and payments can seem overwhelming. I’m here to ensure that everything goes smoothly and that you feel informed every step of the way. Below are some common questions and answers to help you better understand the process when working with a title company.

1) When do I get my sale proceeds?

Once your property’s sale is recorded, your escrow officer will have your proceeds ready for you. You can choose whether you want the funds wired directly into your bank account or receive a check. Let your escrow officer know your preference at the time of signing.

2) Why do I have to pay interest on my loan past the date of recording?

Interest on your loan continues to accrue until your lender officially marks it as paid. This could take a day or two after your escrow officer sends the payoff, either by Federal Express or wire transfer. It’s normal and ensures your loan is fully cleared.

3) When do I get a refund from my impound account?

After your escrow officer sends the payoff to your lender, the refund from your impound account will be sent directly to you, typically within 30-60 days. If you haven’t received it by then, I recommend reaching out to your lender.

4) When should I cancel my homeowners/fire insurance?

Please wait to cancel your homeowners or fire insurance until after you have received your sale proceeds. Keeping your insurance in place until the transaction is fully closed ensures you are covered in case of any unexpected events.

5) Why does my escrow officer require me to complete a 1099 form?

The IRS requires sellers of real property to report the gross proceeds of the sale. Completing the 1099 form ensures that your sale is reported in compliance with tax laws. It’s a standard part of the process.

6) What is a Statement of Information?

A Statement of Information helps the title company distinguish you from others with similar names. It ensures that any judgments or liens associated with someone else’s name don’t mistakenly impact your transaction.

7) How do tax proration's work?

Taxes are prorated based on the fiscal year (from July to July). The escrow officer will calculate your share of the property taxes up to the point of the sale and explain the proration in more detail when you sign the documents.

8) What do I need to bring to the title company when signing papers?

If you need to bring money to close escrow, you’ll need a cashier’s check for the required amount. Also, bring a valid form of identification, such as a passport or military ID, to complete the paperwork.

9) What is a Deed of Reconveyance?

A Deed of Reconveyance is a document from your previous lender stating that your mortgage has been paid in full. This document is recorded with the county, releasing the property from any lien in your name.

When selling your home, you can rely on me, Lisa Lum, to navigate these complex processes and keep you informed every step of the way. With my Berkeley education, background in hospitality, and deep negotiation skills, I’m here to ensure a smooth and successful sale for you.