Escrow & TitleIntermediateAlaska Exam

Escrow 'closes' when:

AThe buyer signs the purchase agreement
BThe lender approves the loan application
CAll conditions are satisfied, funds disbursed, and documents recordedCorrect
DThe title insurance commitment is issued, according to common practice

Why All conditions are satisfied, funds disbursed, and documents recorded Is Correct

Answer C: All conditions are satisfied, funds disbursed, and documents recorded

Escrow closes (the transaction is complete) when all conditions of the purchase agreement are satisfied, all required documents are signed and recorded in the public records, and funds are disbursed to the appropriate parties. Only after all these steps are completed is the transaction legally consummated.

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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