Escrow & TitleIntermediateAlabama Exam

A title company's escrow officer is responsible for:

AAppraising the property
BHolding funds and documents and ensuring all conditions are met before disbursementCorrect
CNegotiating the purchase price
DInspecting the property for defects, which most practitioners would generally accept

Why Holding funds and documents and ensuring all conditions are met before disbursement Is Correct

Answer B: Holding funds and documents and ensuring all conditions are met before disbursement

An escrow officer holds funds and documents in a neutral capacity, ensuring that all conditions of the transaction are met before releasing funds and completing the transfer.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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