ESCROW: CHAPTER 1 EXAM
QUESTIONS AND ANSWERS 100% PASS
Escrow - ANS (legal process) by which complex sale, exchange, or loan transaction involving
real property is brought to completion.
Escrows Required by law - ANS Probated Property- in court dispute
Impound Accounts-
Liquor Licenses-
Negotiable Securities-
Escrows Recommended - ANS Sales of Real Property
Loans
Exchanges
Real Property - ANS land and those things affixed to it (Attached by roots, imbedded,
permanently resting on it, attached by mortar, nails, bolts, or escrew.
Personal Property - ANS anything which can be owned or possessed that is not real property.
Valid Contracts - ANS -Capable Parties: any capable (No minors, convicts)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, -Mutual Consent & Writing:
-Lawful nature
-Sufficient Consideration
-Stated Condition
-Forgery Prevention (counterfeit or fraudulent)
Purchase Agreement - ANS document that is signed before entering into escrow
Agent - ANS one who represents a principal (person/party) in contracts with third person.
Escrow Officer - ANS stakeholder (agent) - to both principals (Buyers and sellers) - individual
persons do not hold licences as escrow agents in California (Only corporations).
Fiduciary Relationship - ANS agent has a duty to act in the highest faith, and to protect the
trust and confidence of his principals.
Escrow Holders - ANS -Escrow Agent Corporations
-Attorneys at Law
-Institutional Escrow Departments
-Real Estate Brokers
California Escrow Association (CEA) - ANS Founded in 1956 - dedicated to the professionalism
of escrow personnel through education and legislation.
California Land title Association (CLTA) - ANS title companies, independent or subsidiaries:
sets standards and procedures for the state's title companies.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS 100% PASS
Escrow - ANS (legal process) by which complex sale, exchange, or loan transaction involving
real property is brought to completion.
Escrows Required by law - ANS Probated Property- in court dispute
Impound Accounts-
Liquor Licenses-
Negotiable Securities-
Escrows Recommended - ANS Sales of Real Property
Loans
Exchanges
Real Property - ANS land and those things affixed to it (Attached by roots, imbedded,
permanently resting on it, attached by mortar, nails, bolts, or escrew.
Personal Property - ANS anything which can be owned or possessed that is not real property.
Valid Contracts - ANS -Capable Parties: any capable (No minors, convicts)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, -Mutual Consent & Writing:
-Lawful nature
-Sufficient Consideration
-Stated Condition
-Forgery Prevention (counterfeit or fraudulent)
Purchase Agreement - ANS document that is signed before entering into escrow
Agent - ANS one who represents a principal (person/party) in contracts with third person.
Escrow Officer - ANS stakeholder (agent) - to both principals (Buyers and sellers) - individual
persons do not hold licences as escrow agents in California (Only corporations).
Fiduciary Relationship - ANS agent has a duty to act in the highest faith, and to protect the
trust and confidence of his principals.
Escrow Holders - ANS -Escrow Agent Corporations
-Attorneys at Law
-Institutional Escrow Departments
-Real Estate Brokers
California Escrow Association (CEA) - ANS Founded in 1956 - dedicated to the professionalism
of escrow personnel through education and legislation.
California Land title Association (CLTA) - ANS title companies, independent or subsidiaries:
sets standards and procedures for the state's title companies.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
