Washington Buyer and Seller Guide for Title and Escrow

38 © Ticor Title Company WHAT IS PAYOFF • Commonly Used Payoff Terms Prefigures: Estimated payoff figures calculated and given prior to closing upon request. These figures are only valid through the date given and are based on the information provided at the time. Good Funds: Ticor Title must be in receipt of “good funds” prior to disbursing on a payoff. Types of good funds include: 1. funds wired into Ticor Title’s trust account; 2. a cashier’s, teller’s or certified check (provide next day availability after deposit to comply with AB51 2); 3. other local checks (provide availability of funds five days after deposit), and 4. out of area checks (provide availability of funds ten days after deposit). Demands: Demands must include specific payoff information concerning the particular property and must be signed. It is the responsibility of the Escrow Officer to order and provide all necessary demands, including any updates or changes on a timely basis. Taxes: Outstanding property taxes can be paid out of the payoff proceeds. Refunds: Any overpayment of demands will be refunded to the escrow upon receipt from the lender. Refunds typically take two to six weeks to process. Shortages: Your Escrow Officer will contact you if there is a shortage of the necessary funds to cover the outstanding obligations. The shortages must be received prior to payoff. Disbursement Checks: Checks are delivered locally to lending institutions by a contracted messenger service. Checks to individuals and to out of area lenders are typically sent via an overnight delivery company. Wire Transfers: Funds can be wired into and out of Ticor Title offices with our bank. Out of County Transactions: Ticor Title offices can receive and disburse payoff funds through any of our offices. A loan payoff is an extremely important service provided by title companies to facilitate the handling of money in the closing of a real estate transaction. It is the receipt of funds from the buyer and the payment of the obligations of the seller (if any) in conjunction with a real estate transaction. The payoff function is performed by Ticor Title as part of the escrow process.