Escrow & Title
What does it mean when escrow 'closes'?
AThe escrow company goes out of business
BAll conditions of the sale have been met, the deed has been recorded, and funds have been disbursed to the appropriate parties✓ Correct
CThe buyer has received keys to the property
DThe seller has vacated the property
Explanation
Closing (close of escrow / COE) occurs when all conditions have been fulfilled, the deed and other documents are recorded with the county recorder, and funds are distributed. Legal title passes to the buyer, the seller receives their proceeds, and the lender funds the loan.
Related California Escrow & Title Questions
- Who selects the escrow company in California?
- Which document gives the escrow holder authority to proceed with a transaction?
- What is the purpose of title insurance?
- Prorations in escrow refer to:
- A 'cloud on title' refers to:
- In California, who typically pays for the owner's title insurance policy?
- Which of the following is considered an involuntary lien?
- Which type of title insurance policy protects the lender's interest in a mortgaged property?
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