Escrow & Title
What is the function of an 'escrow' in a North Dakota real estate transaction?
ATo hold the buyer's earnest money permanently
BA neutral third party holds funds and documents until all conditions of the sale are met, then disburses them accordingly✓ Correct
CThe seller holds funds until the buyer is satisfied with the property
DA government agency that processes all property transfers
Explanation
Escrow involves a neutral third party (escrow holder) holding funds, documents, and instructions until all conditions of the sale are fulfilled. Upon completion, the escrow holder disburses funds and transfers documents to the appropriate parties.
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