Escrow & Title
A holding escrow in Indiana is most commonly used when:
AThe buyer and seller cannot agree on a price
BA third party holds funds or documents pending fulfillment of conditions (such as a repair escrow held until contractor work is complete)✓ Correct
CThe title company needs to clear title defects
DThe lender requires additional documentation
Explanation
A holding escrow retains funds or documents pending fulfillment of specific conditions — for example, a repair escrow holds money back from the seller's proceeds until specified repairs are completed after closing.
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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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
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