Hutchinson Escrow Services
Contract Collections
HES specializes in the contract collections for seller-financed real estate sales transactions, most commonly known as a land contract or a contract for deed.
To set up a contract, we charge one simple fee to prepare all the necessary documents to establish a legally binding Installment Real Estate Contract, as well as the required conveying documents, which include the Affidavit of Equitable Interest and Warranty Deed (or applicable conveying deed).
- The Affidavit of Equitable Interest is the document that immediately transfers the ownership rights and obligations to the Purchaser(s). It enables the Purchaser(s) to begin establishing financial interest in the property, as well as protecting the Purchaser(s) from any possible transactions being attempted with regards to the property. This document also protects the Seller(s) from any liability once recorded.
- The Warranty Deed, or applicable conveying deed, is the document executed at the time of sale by the Seller(s) and then held in "escrow" until the Purchaser(s) pays the contract in full. If the Purchaser(s) never pays the contract in full, the deed is never released for recording.
Each month HES will collect the payment from the Purchaser(s) and disburse the proceeds as required by the contract. Should the Seller(s) have an existing mortgage on the property (also known as an "underlying mortgage") HES will pay the mortgage payment to ensure that the Purchaser(s) is protected from any possible concerns regarding the mortgage not being paid as required. This service is covered by our payment service fee.
At the end of each year, HES will report to the IRS how much interest the Seller(s) has earned and how much interest the Purchaser(s) has paid. This allows the Purchaser(s) to deduct the interest payments on their annual income tax return.
Below you will find our "Set Up Questionnaire". This is the document that we require be completed by both Seller(s) and Purchaser(s) and brought to us for use in creating the Contract documentation. This document has been prepared in a manner such that Seller(s) and Purchaser(s) can sit down together, go through the document section by section, and at the end will have negotiated and considered all items and terms of the prospective Contract. It's important to note that since Seller(s) and Purchaser(s) are negotiating a seller-financed transaction, each item listed on the Questionnaire is optional and no item is a requirement.
Once completed, both Seller(s) and Purchaser(s) sign the last page and then the document is brought to us with a $100 non-refundable retainer. Once the set-up conference is scheduled and held, that $100 is applied toward the full set up fee. If the process fails once the documents are presented to HES, the $100 is forfeit.
Our set-up fee is $300, plus the recording fee for the Affidavit of Equitable Interest. We also charge a payment fee for each payment presented to HES. This fee ranges from $14 to $18 per payment, depending on the services chosen by Seller(s) and Purchaser(s).
Other Services
We provide basic escrow services for anything from your home property tax and insurance to legal cases where a settlement is being placed in escrow until certain terms and conditions are met.
Call our office for any questions.
Forms
If a form that you require is not on this list, please call our office.