Escrow & Title
Which of the following best describes the function of escrow?
ATo provide financing for the buyer
BTo act as a neutral third party that holds funds and documents until all conditions of the sale are met✓ Correct
CTo inspect the property for defects
DTo determine the market value of the property
Explanation
Escrow serves as a neutral depository where funds, documents, and instructions from both buyer and seller are held until all conditions of the transaction are satisfied, at which point the escrow 'closes' and funds and title transfer.
Related California Escrow & Title Questions
- A 'cloud on title' refers to:
- Prorations in escrow refer to:
- A quitclaim deed transfers:
- Who selects the escrow company in California?
- Which of the following liens would have PRIORITY over a previously recorded first mortgage in California?
- A grant deed in California contains which of the following implied warranties?
- What is the 'chain of title'?
- A 'mechanic's lien' can be filed by:
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