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Frequently Asked Questions

1. What are Escrow Services?

To sell a property on contract allows the buyer and seller to negotiate the terms of the purchase directly, such as the down payment, interest rate, length of loan, etc. In most cases, the seller retains title until the contract is paid in full. The service can be used to purchase/sell land, houses, a business or to hold legal documents such as a deed, stock certificate(s) or contract.

2. How do the services get set up?

Your closer would be happy to assist! When visiting with your Realtor or closer, let them know you are interested in selling/buying using our services. It that’s simple!

3. What is the cost?

Secured Escrow Services can provide this service for a reasonable cost. The escrow set up fee and monthly processing fee may vary by location/county of closing office. Please consult with your local TM Holdings, Inc. office (see Affiliate Agencies tab for a list offices) or call Secured Escrow Services at 785-217-9040.

4. What is the responsibility of the Escrow Agent?

Our responsibility is to act as an independent third party that holds documents and maintains records of payments, tax documents and correspondence. We do not take the place of either the buyer or the seller and do not act on behalf of either party. We do not act as a collection agent and we do not provide legal advice.

5. What are the Seller’s responsibilities?

▪ Maintain your own independent record of payments.
▪ Handle collection and/or payment issues directly with the buyer.
▪ Be sure adequate insurance is in force to protect the collateral.
▪ If necessary, legally enforce the terms of the contract.

6. What are the Buyer’s responsibilities?

▪ Maintain your own independent record of payments.
▪ Make full payments as required by the contract in a timely manner.
▪ Maintain insurance improvements, if part of contract.

7. How can selling on contract benefit me?

▪ Selling property through Escrow Services is a simpler, quicker legal process than going through a lender.
▪ You customize the terms of the contract directly with the buyer, such as the interest rate, down payment and length of contract (with or without a balloon payment).
▪ If the buyer defaults and fails to make payments current, the seller can reclaim the property as is and any improvements the buyer made within the contract.
▪You collect the monthly interest instead of a mortgage company.

8. How can buying on contract benefit me?

▪ Buyers who don’t qualify for a traditional mortgage can purchase property.
▪ You customize the terms of the contract directly with the seller, such as the interest rate, down payment and length of contract (with or without a balloon payment).
▪ Unlike a mortgage lender, if the buyer falls behind, the seller can’t demand payment in full; if the buyer makes up the missing payments the loan is considered current.

9. What are the benefits to using Secured Escrow Services for my escrow needs?

If you choose to sell/buy property using a non-traditional method, it is not necessary to use an Escrow Agent; however, there are benefits. Secured Escrow Services is an independent third party – we do not work for the buyer or the seller. Using Secured Escrow Services will provide certainty that when the terms of the contract are fulfilled the applicable documents are recorded. Secured Escrow Services provides accurate recordkeeping of the payment history and, when required, reports interest for both parties to the Internal Revenue Service. ACH service is available for both the seller and/or buyer at no additional charge.

10. What are some drawbacks to selling on contract?

▪ Payments are spread out over time instead of receiving a lump sum through a lender.
▪ If the buyer defaults on payments, you will need to enforce contract terms and possibly seek legal advise.
▪ Traditionally, the property will remain in your name until the contract is paid in full and then ownership is transferred to the buyer; therefore, you will ultimately be responsible for the county taxes if the Escrow Agent cannot pay from reserves.

11. Can Secured Escrow Services pay taxes and insurance?

Not unlike a traditional mortgage company, Secured Escrow Services can collect from the buyer 1/12 of the annual insurance premium and 1/12 of the annual property taxes. This money is included as part of the buyer’s monthly payment and is held in the reserve account. When the insurance and/or taxes come due, Secured Escrow Services can make the payment from the reserve account. This enables the seller to know that the taxes and insurance are getting paid and the buyer doesn’t have to come up with the full amount at once.

12. Is title insurance required?

Although it is not legally required, it is recommended.

13. What other services does Secured Escrow Services provide?

In addition to servicing contracts, we can also set up escrow accounts to hold documents – such as deeds, recorded mortgages, promissory notes and stock certificates. These items are safely held in a fire-proof cabinet until Secured Escrow Services is directed to release the item(s).