Escrow & Title
A title company in Utah acts in a dual capacity as both title insurer and escrow agent. This is:
AA conflict of interest that is always illegal
BCommon practice, but the company must maintain impartiality between the parties✓ Correct
CProhibited by Utah insurance law
DPermitted only in commercial transactions
Explanation
Utah title companies routinely perform both escrow and title insurance functions. They must act impartially as escrow agents while also underwriting title insurance, disclosing any conflicts.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
EscrowA 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).
EasementA non-possessory right to use another person's land for a specific purpose.
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