When the word “escrow” is mentioned, most people think in terms of a real estate transaction. In fact, there are several other types of transactions for which Paxin Closing and Escrow, LLC is able to provide escrow services. Transactions involving a bulk sale or aggregate tax escrows are some of these. Paxin Closing and Escrow, LLC is a closing/escrow/title insurance company. We pride ourselves in the fact that we are a full service company with the ability to provide services in many related areas. A bulk sale generally involves the sale of a business and, if properly handled, serves to protect the creditors of the seller of the business and the purchaser of the business. The statutes governing bulk sales require a notice to be recorded and published which gives the creditors of the seller an opportunity to file claims with the escrow holder for amounts due them for providing goods and/or services to the business. This process also protects the purchaser from the creditors of the seller. Only very competent, experienced escrow officers handle these transactions.
Aggregate tax escrows are generally needed when a management company, managing numerous accounts for a single owner entity, wants to make sure all taxes are paid on time. Normally, when the management company notifies the owner entity, that tax is due, much time is wasted organizing the entity’s accounting department, for timely payments. Thus, resulting in late postings and penalties. In escrow, the management company informs the owner entity, in advance, the aggregate tax amount due. The owner entity then deposits the aggregate tax amount with the escrow company. In turn, the escrow company releases the escrowed monies to the management company, which controls and sends out, timely payments.
