Escrow & Title
Which of the following is a primary function of an escrow in a real estate transaction?
ATo provide title insurance to the buyer
BTo act as a neutral third party holding funds and documents until closing conditions are met✓ Correct
CTo negotiate the purchase price between buyer and seller
DTo perform the property appraisal
Explanation
The escrow serves as a neutral third party that holds funds, documents, and instructions until all conditions of the transaction are satisfied. At closing, escrow disburses funds and records the deed.
Related Hawaii Escrow & Title Questions
- In Hawaii, a quitclaim deed transfers:
- In Hawaii, what is 'title by dedication'?
- A Hawaii deed must contain which essential element to be valid?
- In Hawaii, which of the following best describes 'joint escrow instructions'?
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- In Hawaii, a 'preliminary title report' (title commitment) is issued by the title company BEFORE closing to:
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