Escrow Protection for Real Personal Property Sales And Business Sales

Personal Property Sales

Whether it is vacant land,  personal property sales, commercial property, or any combination an escrow service should be used. If any of the real property & business sale is financed the lender will probably require that an independent escrow service be used to complete the sale. An escrow service protects the buyer and seller and makes it more likely that the sale will go smoothly.

What is Personal Property?

A common question among buyers and sellers of businesses is, “What is considered personal property?” Personal property is defined as the possessions individuals own. Types of personal property can range from physical items like furniture, appliances, and electronics to assets like clothes and artwork. Personal property can also include intangible assets like stocks and bonds. It distinguishes itself from real property by its inherent mobility and is often included in the sales of businesses. A personal property example, in the sale of a Salon, would be the salon’s equipment.

The Escrow Process

The escrow process is unique for a personal property sale, commercial real property sale, business sale, or real property 1031 exchanges, rest assured all parties can rely on escrow professionals to make the sales process secure for both buyers and sellers.

The first step in the process is finding a trustworthy third-party fiduciary escrow service. The escrow company chosen should be dedicated exclusively to the sale of personal property. They should have an excellent reputation in the industry and be known as a subject matter expert. The escrow company acts as a neutral third party in the sale whose job is to make sure that both parties fulfill the terms of the escrow instructions. The next steps in the sale process are:

• The Buyer and Seller Submits Their Signed Contract or LOI to the Escrow Company

The escrow account is established with a contract or LOI signed by both buyer and seller. The buyer selects the escrow company and should always choose a reputable and well-established firm.

• Funding The Escrow Account

Once the escrow account is established with the escrow company. The escrow officer and buyer will follow the escrow instructions and complete any necessary steps for the buyer to deposit the earnest money required for the purchase into the escrow account. 

• UCC Search

If required by contract or in the escrow instruction, the buyer may request a UCC search.

• The Closing Happens

Closings can take place remotely or at the escrow company. Both parties will sign the closing documents and complete any last-minute requirements of the sale.

• Recording

Once closing is complete and notarized recording the documents with the appropriate county and state will be completed by the escrow company.

Why You Need an Escrow Company

Selling any kind of real property or a business isn’t like selling an old couch. When money changes hands it becomes a binding and therefore complicated transaction. Using an escrow company just makes sense to protect both the buyer and seller. The best way to be sure that the sale goes smoothly is to use a reputable escrow company to complete the sale.

Get The Answers You Need

We understand that buying or selling personal property or being involved in commercial real property exchanges can be a confusing and anxiety-inducing process. Contact us today to find out how personal escrow services provided by an experienced escrow company can make the sales process easier and more secure for both buyers and sellers.