Escrow & Title
In an Alaska real estate transaction, the escrow holder's primary function is to:
ARepresent the seller's interests during closing
BAct as a neutral third party holding funds and documents until all conditions are met✓ Correct
CAdvise the buyer on the terms of the purchase agreement
DGuarantee that title is free and clear of all encumbrances
Explanation
The escrow holder (escrow agent or closing agent) acts as a neutral third party who holds funds and documents and disburses them only when all conditions of the purchase agreement are satisfied. The escrow holder does not represent either party and cannot provide legal advice.
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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