Trust sales are one of the most challenging components in the Real Estate Settlement process. Trust salespeople are often paid a “finder’s fee” by a buyer who is purchasing the property after it has been deemed unholy by a Realtor. Trust sales professionals are responsible for providing information to buyers about the property, the market value, and any contingencies that may affect the sale. In some states, salespeople must receive certification from a Realtor before they can practice.
The idea behind escrow services is that the buyer pays the seller a certain amount of money upfront so that the escrow agent can hold the money until the closing date. When the buyer does close the deal and takes ownership of the property, the escrow service refund’s the buyer’s down payment plus interest. Escrow services are usually used to close real estate deals in rural areas since they are less likely to be interrupted by unnecessary litigation. Trust sales professionals also provide additional services like credit verification and title insurance to the client. If an escrow agent does not provide all these services, the buyer may choose to hire another professional.
Some states require that real estate closers hire a licensed trustee or an appointed Trustee. The state licensing board usually approves these Trustee candidates if they have gone through an approved training program. To become a Trustee, an individual must undergo a seven-day training program, pass a written Trustee exam, and meet other state requirements including a minimum of three years of continuous experience in the Trustee position. To become an appointed or licensed Trustee in some states, the candidate must also complete a minimum of three years of office experience.
Most of the states require that the Trustee or appointed Trustee submit a comprehensive financial statement to the state Board of Trustees before they can start practicing in that state. The financial statements are prepared after the Trustee has received all required reports from the escrow agent and the closing agent on the property. The financial statements enable the state to monitor the Trustee’s performance and evaluate its compensation and benefits.
The certification of the Trustee protects the investor, while the state ensures that the Trustee’s compensation is fair and competitively based on his or her services and performance. This is the most important reason for the professional services of an authentic Escrow Company in a trust sales transaction.
Trust Sales Procedure
Once a Trustee has received all required reports from the escrow agent and the closing agent, the next step is for him or her to prepare an inventory report. In the inventory report, the name, address, phone number, and social security number of the client need to be entered. Once the inventory report is ready, the Trustee sends a request to the Escrow Company for its records regarding the purchase price, date of the sale, and the commission fee.
A list of all the Trustees named appointees is then sent to the Escrow Company for confirmation. The list is obtained from the Office of the Secretary of State. Once the list of the appointees is confirmed by the Trustee’s agents, the escrow company prepares an Installment Agreement and forwards it to the appointed Trustees for signing. Once signed, the Installment Agreement is recorded in the official county record books. The Trustee must provide an inspection certificate to the court, which confirms the authenticity of the document.
An inventory, appraisal report, and statement of accounts duly signed by all the named Trustees confirm the proceeds of the sale. The proceeds are then deposited into the Escrow Account of the Trustee. The funds in the Escrow Account are kept in separate accounts for the benefit of the beneficiaries of the Trustee’s contract. When the Trustee sells a property, he or she must pay the appropriate taxes on the sales price.
There are many other reasons why traditional salespeople fail to generate high returns. This is because they lack a proper understanding of what Prospects are looking for in a Real Estate Agent and how to sell it to them. A good agent knows how to identify strong buyers for a property and find profitable low trust selling prices for the property. Traditional salespeople also lack the proper training to make informed decisions on which Prospects are likely to buy a particular property and which ones are unlikely to make a purchase.