Understanding Escrow for Buyers
Co-ops, financial approvals, and the steps to securing your new Leisure World home.
Mutuals 1-12 and 14-16 (Stock Cooperatives): You are purchasing a share of stock in a Stock Cooperative with rights of occupancy in that unit. You own the stock, not the unit itself. This purchase is cash only, and no mortgage is permitted.
Mutual 17 (Condominiums): Buyer is purchasing a condominium and receives a Grant Deed. Mortgages are permitted.
The Buyer's Escrow Timeline
1. Financial Qualification
Once your offer is accepted, your financial qualification packet is submitted. The Stock Transfer Office will verify the packet for compliance with Mutual Policy. The Stock Transfer Office has no authority to approve applications that do not comply with Mutual Policy.
2. The Buyer Orientation Meeting
A Buyer Orientation is required at least 10 business days prior to the close of escrow. Agents may not attend. The meeting is generally conducted by the Mutual President and/or a Mutual Director with the buyer and Mutual Building Inspector in attendance.
This meeting includes a review of the PLI report, Mutual rules and expectations. The meeting will take approximately 1 to 2 hours.
3. Close of Escrow & Membership Fee (TPUF)
Once the orientation is complete and all final funds are verified, Escrow officially closes. At the close of escrow (settlement), each person pays a one-time, non-refundable, $7,000 amenities fee to the GRF for use of Trust property. At this point, the stock transfer (or deed transfer for Mutual 17) is complete, and you receive the keys to your new home!
Leisure World is a strictly age-restricted active adult community. To purchase and live in the community, the buyer must be 55 years of age or older (with some rare exceptions as dictated by law).