Escrow & TitleIntermediateAlaska Exam

In Alaska, 'escrow' is fundamentally a legal arrangement in which:

AThe buyer holds all funds until closing
BA neutral third party holds funds and documents on behalf of both buyer and seller, to be released when all conditions are metCorrect
CThe broker holds all documents and funds on behalf of the seller, though the exact requirements can vary somewhat by jurisdiction
DThe lender holds all funds until the appraisal is complete

Why A neutral third party holds funds and documents on behalf of both buyer and seller, to be released when all conditions are met Is Correct

Answer B: A neutral third party holds funds and documents on behalf of both buyer and seller, to be released when all conditions are met

Escrow is a conditional delivery arrangement in which a neutral third party (the escrow holder or agent) receives and holds funds, documents, and other items from both parties and disburses them only when all conditions of the transaction are fulfilled.

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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