Washington Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Washington exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Washington uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Washington 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 Washington practice.
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Washington Escrow & Title — Practice Questions & Answers
119 questions on Escrow & Title from the Washington real estate question bank. First 10 are free — sign up to unlock all 119.
Q1. In Washington State, closings are typically handled by:
Explanation
In Washington, real estate closings are typically handled by licensed escrow companies or title companies regulated by the Department of Financial Institutions (DFI), not by attorneys as required in some states.
Q2. Washington uses a deed of trust instead of a mortgage, which means the lender's primary remedy upon default is:
Explanation
Washington's deed of trust allows for non-judicial (trustee's sale) foreclosure, which is faster and less expensive than judicial foreclosure. The trustee sells the property without requiring court involvement.
Q3. A lender's title insurance policy in Washington protects:
Explanation
A lender's title insurance policy (also called a mortgagee's policy) protects the lender's interest up to the outstanding loan balance against title defects. Buyers need a separate owner's policy for their own protection.
Q4. Washington's recording act is a 'race-notice' statute, meaning a subsequent purchaser is protected if they:
Explanation
Under Washington's race-notice recording act, a subsequent purchaser gains priority if they record first AND did not have actual or constructive notice of a prior unrecorded interest.
Q5. In Washington, an escrow agent's primary duty is to:
Explanation
An escrow agent in Washington acts as a neutral third party whose duty is to carry out the written instructions of all parties to the transaction — buyer, seller, and lender — in accordance with the escrow instructions.
Q6. A preliminary title report (title commitment) in Washington is issued by:
Explanation
A title insurance company issues the preliminary title report (or title commitment) after searching the public records. It discloses existing liens, encumbrances, easements, and exceptions that will affect the title policy.
Q7. A Washington buyer discovers a mechanic's lien on the property they are purchasing. This lien should be:
Explanation
A mechanic's lien is a cloud on the title. Washington lenders and buyers require clear title before closing. Existing liens must generally be paid off at or before closing to convey marketable title.
Q8. In a Washington real estate closing, proration means:
Explanation
Proration is the allocation of ongoing property expenses (property taxes, HOA dues, prepaid rents) between buyer and seller based on who owns the property on each day, calculated to the closing date.
Q9. In Washington, the most common type of deed used in a standard residential sale is a:
Explanation
The statutory warranty deed is the most commonly used deed in Washington residential transactions. It provides the buyer with full covenants including the warranty that the grantor will defend title against all claims.
Q10. A quitclaim deed in Washington transfers:
Explanation
A quitclaim deed conveys only whatever interest the grantor has at the time of transfer, with no warranties. It is often used between family members, to clear title disputes, or to transfer interests in divorces.
Q11. For a Washington deed to be valid, it must include all of the following EXCEPT:
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