Many banks, insurance companies, real estate brokers, developers, and builders consistently close their real estate transactions through First Chesapeake Title & Escrow’s Escrow Department.

 

An Escrow is a written agreement held by a third party and released only when the terms of the Escrow Agreement are completed or by a mutual release signed by all parties. First Chesapeake Title & Escrow is available to act as a third party for your Escrow which be comprised of documents, money, or a combination of both.

 

First Chesapeake Title & Escrow offers the following types of Escrows:

 

REPAIR OR COMPLETION ESCROW

A Repair or Completion Escrow is held for items not finished at the time of closing. Money is held until certain items are completed. This could be used on a construction project or for repairs on a buyer/seller transaction. A Repair Escrow is money held for a specific item to be repaired or replaced.

 

CONTRACT ESCROW

A Contract Escrow is a document escrow, which could also include money for documentary stamps and recording fees. Usually, the document held is a Warranty Deed that is not recorded until the terms of the Contract are complete. As part of this Escrow, we would also receive a copy of the contract to verify terms and conditions.

 

INHERITANCE TAX ESCROW

An Inheritance Tax Escrow is established when the estate of a deceased titleholder has not been completed and taxes have not been paid. The money is held until the time when taxes are determined. Money will then be released to pay the taxes or if the taxes are paid, the funds will be returned to the estate.

 

1031 EXCHANGE

A 1031 Exchange is a way to sell one or more properties in exchange for another property and delay capital gains on the transaction. First Chesapeake Title & Escrow serves as a qualified intermediary in 1031 like-kind exchanges.

 

THE ESCROW PROCESS

 

The taxpayer will assign the sales contract of the relinquished property to First Chesapeake Title & Escrow and deliver the net proceeds to our escrow department at closing while conveying title directly to the purchases of the relinquished property.

The taxpayer has 45 days to identify the replacement property from the transfer date of the relinquished property. The contract to purchase is then executed and assigned to First Chesapeake Title & Escrow.

By the earlier of 180 days from the transfer date of the relinquished property or the due date of the taxpayer's tax return, closing of the replacement property occurs. At this time the seller conveys title directly to the taxpayer and First Chesapeake Title & Escrow pays out the net proceeds of the relinquished property.

Please check with your real estate attorney or tax advisor for any changes in the tax law related to 1031 exchanges.

 

MORE ESCROW SERVICES

 

Many banks, insurance companies, real estate brokers, developers, and builders consistently close their real estate transactions through our Escrow Department. Please call First Chesapeake Title & Escrow for further services offered by our Escrow Department and see Closings for more information.