Allison-McCloskey Escrow Company

Products And Services

• §1031 Tax Deferred Exchanges Bill Jay Corporation

  What is an IRC § 1031 Tax Deferred Exchange? At time when most tax shelters have been abolished, one remains: the tax deferred exchange. A exchanger continues his/her investment selling one piece of property (the relinquished property /first leg and then uses the proceeds to purchase a second property (the replacement property /second leg). Under internal Revenue Code § 1031, the Exchanger may defer the gain realized by reinvesting in ?like-kind? property. In this way, the taxpayer is able to reinvest 100% of the sales proceeds without paying any capital gains tax. Once an Exchanger has transferred the relinquished property, several requirements must be satisfied to quality as a tax deferred exchange under §1031. The taxpayer must identify ?like-kind? replacement property within 45 days from the first closing and close on the replacement property(S) within 180 days of the closing of the relinquished property. What is Qualified Intermediary? A qualified intermediary is an independent third party, or ?middleman?, who enters into an exchange agreement with the taxpayer/Exchangor, acquires the original property, sells it to the buyer and holds the proceeds until the Exchangor identifies the replacement property. The regulations encourage the use of a qualified intermediary throughout the exchange. What should I look for in a Qualified Intermediary? With an IRC §1031 exchange, care should be exercised in selecting an experienced and professional qualified intermediary who is familiar with exchanges and can satisfy the practical concerns of the parties. The qualified intermediary should be a corporation instead of an individual, primarily because a corporation has unlimited life. The death or incapacity of an individual acting as the qualified intermediary could subject the exchange to a probate action and cause serious delays or even jeopardize the exchange.

  Link: §1031 Tax Deferred Exchanges Bill Jay Corporation

• Manufactured Homes/Mobile Homes

  The sale and transfer of manufactured homes is considered a specialized area of real estate. First, unless attached to the foundation, a manufactured home is considered personal property, making the guidelines for this escrow different from those of a site-built house. In this instance, the home is registered with the Department of Housing and Community Development. However, when the property is affixed to land, it is considered real property and the transaction is then similar to that of residential resale, regulated by the Department of Corporations. A specialized Escrow Officer who understands all regulations, and has up-to-date knowledge of this unique process is an absolute necessity in providing a smooth transaction. Allison-McCloskey Escrow Company remains educated on all laws and requirements involved in manufactured home sales and our in-house dedicated Escrow Officers are extremely capable of successfully handling these types of transactions.

  Link: Manufactured Homes/Mobile Homes

• 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 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. The Bulk Sale Escrow Process: 1. Provide terms of the sale and other required information to the escrow officer 2. Escrow Officer prepares escrow instructions and documents for signature 3. Executed escrow Instructions and documents are returned to escrow 4. Publish and file Notice to Creditors and other applicable documents 5. Escrow officer requests releases/clearances from State Agencies 6. Escrow officer requests State and County Lien Searches 7. Clearances and/or Claims received and acknowledged 8. Escrow officer prepares final amendment and requests final deposit of documents and funds 9. Claims period ends 10. If a liquor license is involved, escrow cannot close until the license is transferred by A.B.C. before closing. 11. Escrow closes This represents a general overview of the Bulk Sale escrow process. Each business sale is unique. Liquor License Allison-McCloskey Escrow Company handles escrows which involve liquor license only transfers- either from person to person and/or premises to premises. Additionally, we facilitate liquor license transfers that occur in conjunction with a Bulk Sale Escrow.

  Link: The Bulk Sale Escrow Process

• HOLDING ESCROWS

  Allison-McCloskey Escrow Company is well prepared to handle your clients’ HOLDING ESCROWS (Personal Property Escrows) Disputed funds awaiting Arbitration or an Order of Court Contract retention funds being invested by contractor Source codes, plan, valuables Web sites Surrogate family funds Funds held pending transfer or encumbrance of vehicles, boats, aircraft, stocks, government licenses, air frequencies, etc. Options Sale or purchase of property on an extended time basis Funds held awaiting performance of services or delivery of personal property in the U.S.A or over the border. YOUR CONTRACTS, AGREEMENTS AND DOCUMENTATION ESCROWED AS PER INSTRUCTIONS TO US MAY BE INCORPORATED INTO ESCROW INSTRUCTIONS. Allison-McCloskey Escrow Company is Licensed by the Department of Corporations, State of California, License No. 963 0010. Allison-McCloskey Escrow Company is a mandatory member of the Escrow Agents’ Fidelity Corporation indemnifies its member trust obligation the California Financial Code. Allison-McCloskey Escrow Company is insured under a Fidelity Bond underwritten by Continental Casualty Company, a member of the CNA Insurance Companies.

  Link: HOLDING ESCROWS

• Residential/Commercial

  Sale Escrow: A transaction involving the purchase or sale of a property. Whether it be the purchase of a home with an agent, a For Sale by Owner (“FISBO”), an investment property, or a vacant parcel, Escrow is essential to assist for a trouble free transaction.

  Link: Residential/Commercial

• Refinance Escrows

  Refinance Escrows: A reason to refinance your home or an income property may be to secure a lower interest rate or return, consolidate debt, or an equity withdrawal. The process of Refinancing involves obtaining a new loan, replacing and paying off the existing mortgage, along with any liens of record.

  Link: Refinance Escrows

• New Home Sales/ Condominium Conversion

  Definition "The act of buying a house, condominium or condominium conversion from the builder, which is currently in the process of being built or has recently been constructed or an existing structure that has been converted to a condominium." The purchase of a new home is very different from that of a previously owned home. Customarily the Builder of your home has usually contracted with an escrow company that they trust to handle the processing and close of escrow for each of their Buyer’s. Buyers’ receive the benefit of an established business relationship with an escrow officer who is educated, informed and experienced in the specialized area of new developments. Allison-McCloskey Escrow Company maintains a solid reputation with Builder and has a proven track record of helping them meet their everyday business challenges. We provide attention to detail and professional service for both the Builder and Buyer.

  Link: New Home Sales/ Condominium Conversion