Escrow & Title
In Utah, an escrow can be established for which of the following?
AOnly new home purchases
BAny transaction where a neutral third party holding of funds and documents is beneficial✓ Correct
COnly commercial real estate
DOnly federally backed loans
Explanation
Escrow can be used for any transaction requiring a neutral third party to hold funds and documents—residential and commercial sales, refinances, construction loans, exchanges, and other real estate transactions.
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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).
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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