Escrow & Title
What is the primary function of escrow in a California real estate transaction?
ATo market the property to buyers
BTo act as a neutral third party that holds funds and documents and carries out the instructions of buyer, seller, and lender until all conditions are met✓ Correct
CTo provide title insurance
DTo conduct the property inspection
Explanation
Escrow is a neutral third party (escrow holder) that holds funds, documents, and other items until all conditions of the sale are met. When all conditions are satisfied, escrow 'closes' by disbursing funds and recording the deed.
Related California Escrow & Title Questions
- In California, who typically pays for the owner's title insurance policy?
- In California, escrow is typically handled by:
- In California, a homestead declaration provides protection from forced sale by unsecured creditors up to what maximum amount for a single person?
- A 'chain of title' refers to:
- What is 'chain of title'?
- Which of the following would NOT be covered by a standard owner's title insurance policy?
- Which type of title insurance protects the lender?
- What is the purpose of a 'title commitment' (commitment for title insurance)?
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