Escrow & Title
The Washington Escrow Agent Registration Act (RCW 18.44) regulates which entities?
AOnly title insurance companies
BEscrow companies that are not part of licensed financial institutions or title insurance companies✓ Correct
CAll entities that hold funds in trust for others
DOnly mortgage brokers acting as escrow agents
Explanation
RCW 18.44 regulates independent escrow companies that are not affiliated with a financial institution, title company, or attorney.
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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.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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