BROKER'S EXAM - ESCROW, TITLE
INSURANCE, AND CLOSING
Escrow - Correct Answers -A neutral process in which a third party holds money and
documents until all conditions of a transaction have been satisfied.
Escrow Holder - Correct Answers -A neutral third party responsible for following the
written escrow instructions and facilitating the closing of a transaction.
Escrow Instructions - Correct Answers -Written directions provided by the parties that
specify the conditions required before escrow can close.
Closing - Correct Answers -The final step of a real estate transaction where ownership
transfers from seller to buyer.
Close of Escrow (COE) - Correct Answers -The date all conditions have been met,
documents are recorded, and ownership officially transfers.
Owner's Title Insurance - Correct Answers -A policy protecting the property owner
against covered title defects.
Lender's Title Insurance - Correct Answers -A policy protecting the lender's security
interest in the property until the loan is paid.
Preliminary Title Report - Correct Answers -A report identifying the current ownership,
liens, easements, restrictions, and conditions affecting title before closing.
Settlement - Correct Answers -The accounting process that calculates all credits, debits,
and expenses for the buyer and seller.
Settlement Statement - Correct Answers -A document summarizing all financial aspects
of the transaction, including credits, debits, and closing costs.
Closing Costs - Correct Answers -Expenses incurred to complete a real estate
transaction, such as escrow fees, title insurance, recording fees, and loan charges.
Proration - Correct Answers -The division of income or expenses between buyer and
seller based on the closing date.
Recording - Correct Answers -The process of placing a document into the public record
to provide constructive notice.
INSURANCE, AND CLOSING
Escrow - Correct Answers -A neutral process in which a third party holds money and
documents until all conditions of a transaction have been satisfied.
Escrow Holder - Correct Answers -A neutral third party responsible for following the
written escrow instructions and facilitating the closing of a transaction.
Escrow Instructions - Correct Answers -Written directions provided by the parties that
specify the conditions required before escrow can close.
Closing - Correct Answers -The final step of a real estate transaction where ownership
transfers from seller to buyer.
Close of Escrow (COE) - Correct Answers -The date all conditions have been met,
documents are recorded, and ownership officially transfers.
Owner's Title Insurance - Correct Answers -A policy protecting the property owner
against covered title defects.
Lender's Title Insurance - Correct Answers -A policy protecting the lender's security
interest in the property until the loan is paid.
Preliminary Title Report - Correct Answers -A report identifying the current ownership,
liens, easements, restrictions, and conditions affecting title before closing.
Settlement - Correct Answers -The accounting process that calculates all credits, debits,
and expenses for the buyer and seller.
Settlement Statement - Correct Answers -A document summarizing all financial aspects
of the transaction, including credits, debits, and closing costs.
Closing Costs - Correct Answers -Expenses incurred to complete a real estate
transaction, such as escrow fees, title insurance, recording fees, and loan charges.
Proration - Correct Answers -The division of income or expenses between buyer and
seller based on the closing date.
Recording - Correct Answers -The process of placing a document into the public record
to provide constructive notice.
