RE Escrow Written Assignment #1 ESCROW ASSIGNMENT #1 - PREPARE THE OPENING ESCROW MEMO SHEET This Assignment will give the opportunity to review a Residential Purchase Agreement form RPA-CA on a Single-Family Residential Home purchase and gather information from that document to create an Escrow Memo Sheet. This Memo Sheet summarizes information used to enter into the Escrow Management System to generate the Escrow Written Instructions for the Seller and Buyer. It also is useful in creating the Commission Instructions that would go to the Seller and the Brokers representing the Seller and Buyer. The goal of this exercise is to get familiar with information on the RPA-CA and begin the process of gathering key parts of the contract to be able to generate Escrow Instructions. Instructions: Read the Purchase Transaction Scenario with the supporting Residential Purchase Agreement, and the Escrow Memo Form thoroughly; using the links in the Canvas Assignment page to access the files: RPA-CA Example, and Escrow Memo Assignment. Once you have reviewed the documents, use the Escrow Memo Spreadsheet to fill in the required information on the form. Be aware that this form is standardized and not all fields on it will need to be filled in if the field is irreverent to this transaction. lfyou have trouble with using Excel, I also provide the Form as a basic conversion into MSWord. You will be calculating Broker Commissions, Prorated Seller Property tax, and Documentary Transfer Tax. Please show your work and the final amount in those fields as instructed on the form to get full credit. See Rubric for grading criteria of this Assignment. Make sure to save your work when completed. Upload your work into the Work Assignment Page on Canvas prior to the due date posted in Canvas. Submitting your work in a MS Word, MS Excel, IOS Pages or Numbers, or PDF document is also acceptable. Purchase Transaction Scenario: Seller Brokerage has listed a Single-Family home in South Gate with Mr. Seller. The Property was placed on the Market and received an offer. The offer was submitted on behalf of Mrs. Buyer by Buyer Brokerage and Mr. Seller accepted the terms. Although the documents presented do not display electronic signatures, assume these documents were fully executed via electronic signatures. Escrow has been opened on this transaction which is currently in process. The Escrow Officer has received the RFACA and is asking you to translate the information into the Escrow Memo Spreadsheet so Escrow and Commission Instructions can be generated. The key documents for the Offer and Memo are presented for your review. Additional information not on the RPA-CA you will need for the Memo sheet: 1. Seller does not have a mortgage lien on the property at this time. The house is \"free and clear" as the mortgage has been paid off years ago. Therefore, there is no Seller proration for Mortgage Interest. 2. Hint: Buyer's Loan information is on the RPA-CA section 3D. 3. The Listing with the Seller was agreed in writing on the Residential Listing Agreement that the Listing Broker would get 3% commission and the Selling (Buyer) Broker would get 2% commission. (FYI, The MLS listing advertised that the Cooperating Broker would get 2% commission) This makes the total commission charged to the Seller at 5%. 4. The Property Tax annual amount due by the Seller is $1,076.34. The Seller has already paid the first half of the annual Tax bill which covers from July 1, 2018 thru December 31, 2018. The second half payment of $538.17 has not been paid by the Seller and covers the time period from la nuary 3., 2019 thru June 30, 2019. (Hint. You will need to calculate the day of Escrow closing, and from that day, count how many calendar days the Seller will have owned the property since Jan lst. The number of days must be multiplied by the daily prorated amount) (Hint. Daily Proration dollar amount of property taxes are calculated based on a 30-day month per California Escrow Practice so 6 months equals 180 days). (Extra hint, you are calculating both the Daily Proration dollar amount and the number of calendar days Seller would be responsible for the prorated second half Tax payment) 5. The Seller will handle the cancelation of their Fire Insurance policy outside of Escrow. 6. The Lender will later on in the Escrow timeline provide information via a document called the Lending Estimate- LE [used to be called the Good Faith Estimate) regarding Buyer's closing costs, so they are not available yet at this time. meaning you do not have to estimate for this exercise any Buyer Prorations on this form. 7. The Documentary Transfer Taxis equal to $1.10 for every 51,000 of the purchase price. 8. The Cost for an NHD report typically varies between $90-$120 based on which Vendor provides the report. For this Escrow the chosen Vendor charges $94.95. ESCROW ASSIGNMENT #1 PREPARE THE OPENING ESCROW MEMO SHEET Student Name Transaction Type Escrow File # 2019-158-EO Purchase Price Escrow # days Property Type (Home/Condo) Contract Acceptance Date Estimated Closing Date Seller 1 Name Buyer 1 Name Seller 2 Name Buyer 2 Name Property Address/ Legal Description Old Encumbrances Does Seller have to pay off any lien(s) (Y/N) Type Amount owed Type Amount owed New Encumbrances New Loan Amount Loan Type Balance Buyer's Down payment after Buyer's Deposit Amount deposit Commissions Listing Company Selling Company (Buyer) Listing DRE License Selling DRE License Listing Commission Dollar Amount Selling Commission Dollar Amount (show calculation and final amount) (show calculation and final amount) Seller Prorations Property Tax (show calculation and final amount) Fire Insurance Other Proration Seller Mortgage Interest Miscellaneous Requirements: Costs and Adjustments Documentary Transfer Tax (show calculation and final amount) Home Warranty Termite Report and Clearance NHD Report Buyer Credits Other Adjustments Type Other Adjustments Amount Other Adjustments Type Other Adjustments Amount