Escrow & Title
What is the role of the escrow agent in a Delaware real estate closing?
ATo negotiate the purchase price between buyer and seller
BTo hold funds and documents in trust and disburse them according to the escrow instructions upon satisfaction of closing conditions✓ Correct
CTo provide the buyer's mortgage financing
DTo perform the title search on behalf of the parties
Explanation
The escrow agent (typically an attorney in Delaware, an attorney closing state) holds funds (earnest money, down payment, loan proceeds) and closing documents in trust. When all conditions of the purchase agreement are met, the escrow agent disburses funds to appropriate parties and records the deed.
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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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Math Concepts
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