Idaho Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Idaho exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Idaho uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Idaho law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Idaho practice.
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Idaho Escrow & Title — Practice Questions & Answers
86 questions on Escrow & Title from the Idaho real estate question bank. First 10 are free — sign up to unlock all 86.
Q1. In Idaho, which document transfers ownership of real property from seller to buyer?
Explanation
A deed is the legal instrument that transfers ownership (title) of real property from the grantor (seller) to the grantee (buyer). The deed must be properly executed, delivered, and accepted to be effective.
Q2. A title search examines public records to determine:
Explanation
A title search reviews public records to trace the chain of title and identify any liens, encumbrances, easements, or other claims on the property. It is typically conducted before closing to ensure the seller can convey clear title.
Q3. A buyer purchases a property and later discovers an undisclosed easement that the title insurance policy did not cover. Which type of title insurance issue is this?
Explanation
Title insurance policies contain exceptions — specific matters that are excluded from coverage. Easements known before closing that are not disclosed or noted in the policy may be exceptions from coverage, meaning the insurer has no obligation to defend or compensate.
Q4. The RESPA prohibition on kickbacks means that settlement service providers:
Explanation
RESPA Section 8 prohibits giving or receiving referral fees, kickbacks, or anything of value for the referral of settlement service business. Providers can co-market but cannot pay each other solely for referrals.
Q5. A general warranty deed contains which of the following covenants?
Explanation
A general warranty deed contains several covenants: seisin (grantor has title), right to convey, covenant against encumbrances, quiet enjoyment, warranty forever (grantor will defend title), and further assurance (grantor will do what is needed to correct title).
Q6. The escrow process in a real estate transaction serves to:
Explanation
Escrow is a neutral third-party process ensuring that all conditions of the transaction are met before funds and title are transferred. The escrow agent holds documents and funds until all conditions are satisfied.
Q7. Which type of title insurance protects the lender's interest in the property?
Explanation
A lender's (mortgagee's) title insurance policy protects the lender against title defects up to the loan amount. It is typically required by lenders and protects the lender's security interest, not the buyer's equity in the property.
Q8. For a deed to be valid, it must contain all of the following EXCEPT:
Explanation
Acknowledgment (notarization) is required for recording a deed but is not technically required for the deed to be valid between the parties. Essential elements of a valid deed include: grantor/grantee identification, legal description, words of conveyance, and grantor's signature.
Q9. The priority of liens is generally determined by:
Explanation
Under the 'first in time, first in right' principle, lien priority is generally determined by the date and time of recording. The first lien recorded has priority over subsequently recorded liens. Property tax liens, however, always have super-priority.
Q10. A lis pendens recorded against a property provides notice that:
Explanation
A lis pendens (Latin for 'suit pending') is a recorded notice that there is a pending lawsuit that may affect title to the property. It puts prospective buyers and lenders on notice that the title could be affected by the outcome of the litigation.
Q11. A deed of reconveyance is used to:
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