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. Chicago Escrow Services, LLC is available to act as a third party for your Escrow that can be comprised of documents, money or a combination of both.
A Repair or Completion Escrow is held for items not finished at 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.
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.
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.
A 1031 Exchange is a way to sell one or more properties in exchange for another property and delaying capital gains on the transaction. Chicago Escrow Services, LLC serves as a qualified intermediary in 1031 like-kind exchanges.
The taxpayer will assign the sales contract of the relinquished property to Chicago Escrow Services, LLC 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 Chicago Escrow Services, LLC.
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 Chicago Escrow Services, LLC 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.
Many banks, insurance companies, real estate brokers, developers and builders consistently close their real estate transactions through our Escrow Department. Please call Chicago Escrow Services, LLC for further services offered by our Escrow Department and see Closings for more information.