Resources – Zo Escrow

Information on California Real Estate Withholding Taxes for Sellers

Posted on February 14, 2023 (February 23, 2024) by Shirley Kim

California state law (California Code, Revenue and Taxation Code – RTC § 18662) states such that all real property being sold requires the payment of tax at the close of escrow in an amount equal to 3.33% of the sales price. An Alternative Calculated Amount can also be used which involves some computations to determine the seller’s gain or…

Prorations: Property Taxes

Posted on January 8, 2019 (July 8, 2019) by Shirley Kim

The purpose of a proration in a sale transaction is to fairly divide property expenses like taxes and association dues between the Seller and Buyer so that each party is paying only for those days which he actually owns the property. Property taxes run on a fiscal calendar year and does not follow the standard calendar…

What is a Loan Tie-In Fee?

Posted on August 9, 2018 (February 23, 2024) by Shirley Kim

The Loan Tie-In Fee is a fee compensates your escrow company for the additional work required to process having one or more lender(s) in the escrow process. Below is a comprehensive list (but not all-inclusive) that gives an overview of the additional liability, time, expertise and expense required tofacilitate a successful close of escrow where a…

What is a Certification For No Information Reporting?

Posted on July 24, 2018 (July 28, 2018) by Shirley Kim

Question: We have a form that we are using but I can’t remember what allowed it. It is titled “Certification For No Information Reporting On The Sale Or Exchange Of A Principal Residence”. It is used to determine if we have to report the sale to the IRS on form 1099-S, Proceeds From Real Estate Transactions….

What is a Substitute Form 1099-S?

Posted on June 24, 2018 (July 28, 2018) by Shirley Kim

Required Reporting to the I.R.S. Sellers of real property will have certain information regarding the sale reported to the Internal Revenue Service. This required reporting is a consequence of the Tax Reform Act of 1986; it is intended to encourage taxpayer compliance and aid in audit and enforcement efforts by the I.R.S. To help you…

Help Filling Out A 1099 Certification

Posted on May 23, 2018 (February 23, 2024) by Shirley Kim

Seller 1099-S Form Download Click on the linked PDF below to view helpful instructions on filling out a 1099 Certification form. Seller 1099-S…

What is CAL-FIRPTA Withholding?

Posted on April 23, 2018 (July 28, 2018) by Shirley Kim

Unless you have a reason to be familiar with tax laws, you are probably wondering, “what is FIRPTA?”. FIRPTA stands for Foreign Investment in Real Property Tax Act. It is a tax law that ensures foreign taxpayers pay income tax on their sale of US real estate. Read on for more information about what FIRPTA is and how it…

What is a Statement of Information?

Posted on March 23, 2018 (July 29, 2018) by Shirley Kim

What is the Statement of Information? Upon the opening of escrow, Buyers and Sellers receive their initial escrow package – the Statement of Information (also known as the Statement of Identity) is included in this package for completion and return to the escrow holder. The statement of information is a one-page document which requests the…

What is the Escrow Process?

Posted on February 23, 2018 (July 28, 2018) by Shirley Kim

The Lender Deposits proceeds of the loan to the purchaser. Directs the escrow holder on the conditions under which the loan funds may be used. The Escrow Holder Opens the order for title insurance. Obtains approvals from the buyer on title insurance report, pest and other inspections. Receives funds from the buyer and/or any lender….

What is the 593-C Form?

Posted on January 22, 2018 (February 23, 2024) by Shirley Kim

California Real Estate Withholding For Sellers of Real Property (California Revenue and Taxation Code Section 18662) How Much Taxes Are Withheld From the Sale of Real Property? All real property being sold requires the payment of tax at the close of escrow in an amount equal to 3.33% of the sales price. If the seller…