Escrow & Title

A Texas real estate closing involves the simultaneous exchange of the deed for the purchase price. This is facilitated by:

AThe listing agent holding all funds
BThe escrow/title company acting as neutral third party to collect and disburse funds and record documents✓ Correct
CTREC directly overseeing the exchange
DBoth attorneys for buyer and seller exchanging documents at a table

Explanation

In Texas, real estate closings are typically conducted through a title company acting as the escrow agent, which collects funds from the buyer and lender, pays off existing liens, disburses proceeds to the seller, and records the deed and other documents.

Related Texas Escrow & Title Questions

Practice More Texas Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Texas Quiz →