Utah Practice TestEscrow & Title

Utah Escrow & Title
Practice Questions & Answers (2026)

Escrow, title, and closing questions on the Utah exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Utah uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Utah law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Utah practice.

Practice Questions

Utah Escrow & Title — Practice Questions & Answers

111 questions on Escrow & Title from the Utah real estate question bank. First 10 are free — sign up to unlock all 111.

Q1. In Utah, a trustee's sale (non-judicial foreclosure) must be preceded by a notice of default and a minimum notice period to the borrower of:

A.30 days
B.60 days
C.90 days
D.120 days

Explanation

Under Utah's non-judicial foreclosure process, the trustee must record and serve a Notice of Default and allow a 90-day reinstatement period before proceeding with the trustee's sale, giving the borrower time to cure the default.

Q2. A quitclaim deed is used most often to:

A.Convey property with the strongest title guarantees
B.Transfer whatever interest the grantor holds without any warranties
C.Transfer property as part of a standard residential home sale
D.Guarantee a marketable title to the grantee

Explanation

A quitclaim deed transfers only whatever interest the grantor holds (which may be nothing) without any warranties of title. It is used to clear clouds on title, transfer property between family members, or remove a co-owner from title.

Q3. In Utah, the standard for 'marketable title' means title that is:

A.Free from all liens and encumbrances of any kind
B.Reasonably free from doubt and likely to be accepted by a reasonable buyer without objection
C.Guaranteed by the state to be free of all defects
D.Insured by a title insurance company

Explanation

Marketable title is title that a reasonably prudent buyer would accept as free from reasonable doubt—title that would not expose the buyer to litigation. Minor technical defects may not render title unmarketable if they are unlikely to result in a claim.

Q4. The chain of title refers to:

A.The sequence of all recorded documents affecting title from the original grant to the present owner
B.The physical survey marking the property's boundaries
C.The list of title insurance policies issued on a property
D.The recorded easements and restrictions on the property

Explanation

The chain of title is the chronological sequence of all recorded documents (deeds, liens, releases, etc.) that show the history of ownership from the original patent or grant to the current owner.

Q5. Title insurance protects the insured against:

A.Future physical damage to the property
B.Losses from defects in title that existed before the policy date
C.Boundary disputes arising after the policy is issued
D.Environmental contamination discovered after closing

Explanation

Title insurance protects against losses from defects in title that existed prior to the policy issuance date—such as undisclosed liens, forgery, errors in public records, or unknown heirs. It does not cover future events or physical property damage.

Q6. In Utah, a general warranty deed provides the grantee with which covenants?

A.Covenant of seisin only
B.Covenants of seisin, quiet enjoyment, further assurance, warranty, and freedom from encumbrances
C.Only the covenant that the grantor has not encumbered the property
D.No covenants—the deed simply transfers whatever interest the grantor holds

Explanation

A general warranty deed provides the broadest title protection with five covenants: seisin (grantor owns the property), quiet enjoyment, further assurance (grantor will help clear title), general warranty (against all claims), and freedom from encumbrances (except those listed).

Q7. RESPA requires that borrowers receive a Loan Estimate within how many business days of application?

A.1 business day
B.3 business days
C.5 business days
D.10 business days

Explanation

Under RESPA and TILA-RESPA Integrated Disclosure (TRID) rules, lenders must provide the Loan Estimate within 3 business days of receiving a loan application. The Loan Estimate discloses loan terms and estimated closing costs.

Q8. Proration at closing is used to:

A.Calculate the agent's commission on a prorated basis
B.Fairly divide recurring costs such as property taxes and HOA dues between buyer and seller
C.Determine the seller's capital gains tax liability
D.Split the earnest money between buyer and seller

Explanation

Proration divides recurring expenses like property taxes, HOA dues, and rent between buyer and seller based on their respective periods of ownership during the year. The party who owns the property on a given day typically bears that day's expense.

Q9. In Utah, when does title to real property pass in a deed transaction?

A.When the deed is signed by the grantor
B.When the deed is delivered to and accepted by the grantee
C.When the deed is recorded in the county recorder's office
D.When the purchase price is fully paid

Explanation

Title passes when the deed is delivered to and accepted by the grantee. Recording is important for providing constructive notice to third parties but is not required for title to pass between the grantor and grantee.

Q10. A lis pendens is a recorded notice that:

A.A property has a tax lien
B.Pending litigation affects the property's title
C.The property is in foreclosure
D.A boundary survey has been completed

Explanation

A lis pendens ('pending lawsuit') is a recorded notice that warns potential buyers and lenders that the property's title is subject to an active lawsuit. Anyone who acquires the property takes it subject to the outcome of that litigation.

Q11. In Utah, escrow is typically handled by:

A.The buyer's attorney
B.A title company or escrow company
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