Exam (elaborations)
Escrow And Closing – Questions & Verified Solutions
Escrow And Closing – Questions & Verified Solutions
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Escrow And Closing – Questions & Verified SolutionsWhen the executed escrow instructions differ from the purchase
agreement, which of the following is correct? Correct Ans - The
escrow instructions take precedence.
The escrow instructions take precedence over all other documents.
Escrow agents must: Correct Ans - - remain neutral by acting as an
agent for both buyer and seller.
- strictly comply with the escrow instructions.
- treat information as confidential.
An escrow agent must treat information as confidential, strictly comply
with escrow instructions, and remain neutral while representing the
interests of all parties with an interest in the transaction.
Which of the following are duties performed by an escrow agent if so
directed in the escrow instructions? Correct Ans - - Order the title
insurance report and policies.
- Disburse funds as authorized by the principals.
An escrow agent may disburse funds as directed by the parties and order
the title insurance report and policies. An escrow agent may not draft legal
documents, even if authorized to do so.
The money and documents of a real estate transaction are held in trust
until closing by: Correct Ans - a neutral third party known as the
escrow agent.
The money and documents are held by an escrow agent.
To prorate means to: Correct Ans - allocate the financial impact of a
particular item on the parties as of a particular date.
Proration is the process of allocating a sum of money or expense
proportionately according to time, interest, and benefit.
Escrow terminates: Correct Ans - - when the transaction closes.
- if the buyer and seller mutually agree to terminate the escrow.
- if the terms of the escrow instructions have not been fulfilled by the
specified closing date.
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