Escrow & Title
In California, an escrow holder is considered a dual agent for both buyer and seller. This means the escrow holder:
AAdvocates for both parties equally
BMust follow the joint escrow instructions of both parties and cannot take sides✓ Correct
CCan advise one party to obtain better terms
DHas fiduciary duties only to the seller
Explanation
The escrow holder is a neutral dual agent with limited fiduciary duties — it must follow the written instructions of both parties. The escrow holder cannot favor either party, give legal advice, or deviate from instructions without mutual consent. Its neutrality is fundamental to the escrow process.
Related California Escrow & Title Questions
- In California escrow, when a buyer cancels the transaction after all contingencies have been removed, the seller may be entitled to retain:
- Under California's race-notice recording statute, a subsequent purchaser prevails over a prior unrecorded deed if the subsequent purchaser:
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- The doctrine of 'constructive notice' in real estate means:
- A 'cloud on title' refers to:
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- An extended (ALTA) title insurance policy differs from a standard (CLTA) policy primarily by:
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