Escrow & Title
Escrow in an Iowa real estate closing refers to:
AThe buyer's inspection period
BA neutral third-party arrangement where funds and documents are held until all conditions are met and closing occurs✓ Correct
CThe broker's trust account for operating expenses
DThe period between listing and receiving an offer
Explanation
Escrow involves a neutral third party (escrow agent, title company, or attorney) holding funds, documents, and instructions until all conditions of the transaction are satisfied, at which point the closing is completed and funds are disbursed.
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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.
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.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
State-Specific Concepts
Trust Account Rules
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