Escrow & Title
In South Dakota, which statement about 'escrow' in a real estate transaction is correct?
AEscrow is only required for transactions over $500,000
BEscrow is a process where a neutral third party holds funds and documents until all conditions of the sale are met✓ Correct
COnly licensed attorneys can serve as escrow agents in South Dakota
DEscrow automatically guarantees that the transaction will close
Explanation
Escrow is a process where a neutral third party (escrow agent) holds documents (like the deed) and funds (like the purchase price and earnest money) until all conditions of the real estate sale are satisfied. When all conditions are met, the escrow agent distributes funds 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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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.
Math Concepts
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