ESCROW SAMPLE TEST QUESTIONS
AND ANSWERS
An escrow is an arrangement that: a) Holds documents, b) Holds funds, c) Creates
documents to affect a transfer of interest in property, d) is responsible for guaranteeing
funds. - Correct Answers -A, B, C, E
When is it necessary to have closing documents recorded prior to disbursement of
escrow funds? a) it is not necessary, b) in almost all situations, c) when instructed by
one of the parties to the escrow, d) only when the written instructions require recording.
- Correct Answers -B
Usury Law is defines as: a) the right to use the surface of real property, b) is applicable
to the prescriptive easement of ingress and egress, c) the maximum amount of interest
which can be charged on a security instrument, d) the appurtenant right to use a right of
way for ingress and egress. - Correct Answers -C
What characteristics should an escrow officer maintain? a) abstractor, b) competent, c)
legal advisor, d) impartial, e) has the right to foreclose, f) follows instructions. - Correct
Answers -B, D, F
What is the minimum number of parties to an escrow? - Correct Answers -3
An Earnest Money Agreement usually does not reveal the following: a) property
address, b) buyers' and sellers' name, c) title exceptions, d) improvements to the
subject property, e) personal property to be included in the sale. - Correct Answers -C
An escrow agent has the responsibility to review the following, with the parties involved
in a real estate transaction: a) the Title Report, b) the Earnest Money Agreement, c) the
Owners' Policy, d) Certificate of Apportionment, e) Letters of Testamentary. - Correct
Answers -A
What is a Bill of Sale? a) same as a warranty deed, b) instrument to transfer mineral
rights, c) used to convey personal property, d) a certificate concerning well rights, e)
instrument to convey a title policy. - Correct Answers -C
On an assumption, the following information should be obtained from the lender: a)
payment history, b) FHA premium information, c) fire insurance information, d) reserve
(impound) balance, e) certificate of approval on buyer, f) delinquent payment and late
fees paid, g) marital status. - Correct Answers -B, C, D
, Date of possession is used in the closing to determine: a) the date of the closing, b) the
date to be placed on the documents, c) the date used for prorations, d) the date of
recording. - Correct Answers -C
A Title Report or Commitment contains the following information, necessary for the
closing: a) property address, b) zoning, c) encumbrances, d) fire insurance information,
e) tax information, f) vested owners. - Correct Answers -C, E, F
A licensed escrow agent has the authority to draw up the necessary documents to the
escrow by reason of: a) the Utah Bulk Sales Act, b) Insurance Act, c) the Paralegal Act,
d) the Utah Escrow Act. - Correct Answers -B
An escrow agent can determine liens against personal property by a) obtaining a UCC
II, b) searching the personal property index, c) checking with the county treasurer, d)
calling the state auditor. - Correct Answers -A
In an exchange escrow, an escrow agent: a) certifies that the escrow qualifies for a
1031 tax free exchange, b) closes on more than one transaction simultaneously, c)
deals with foreign currency, d) prepares duplicate settlement statements. - Correct
Answers -B
Any reservations pertaining to the surface of real property should appear on: a) the
promissory note, b) the bill of sale, c) the face of the Warranty Deed, d) the UCC 3, e)
Schedule A of the lenders title policy. - Correct Answers -C
It is the escrow agent's job to determine: a) liability in the event damage or destruction
of the property which is the subject of the escrow, b) any claim on the title policy, c) the
validity of all documents, d) when possession is scheduled. - Correct Answers -D
Loan closings differ from regular sale closings by reason of the fact that loan closings
contain the following: a) discount points, b) interest rate adjustments, c) origination rate
adjustments, d) warehousing fees. - Correct Answers -A, D
Private Mortgage Insurance premiums are: a) prepaid, b) paid in arrears, c) paid to
FmHA, d) never prorated. - Correct Answers -A
FHA premiums are: a) included in the origination fee, b) handled outside of escrow, c)
paid by the selling agent, d) none of the above. - Correct Answers -D
The information from a lender on the assumption of a mortgage should be compared
with: a) the Earnest Money Agreement, b) Warranty Deed, c) the Bill of Sale, d) the
Restrictive Covenants. - Correct Answers -A
If there is a counter offer to the original Earnest Money Receipt and Offer to Purchase:
a) it is necessary to have a new Earnest Money Agreement prepared, b) it must be
AND ANSWERS
An escrow is an arrangement that: a) Holds documents, b) Holds funds, c) Creates
documents to affect a transfer of interest in property, d) is responsible for guaranteeing
funds. - Correct Answers -A, B, C, E
When is it necessary to have closing documents recorded prior to disbursement of
escrow funds? a) it is not necessary, b) in almost all situations, c) when instructed by
one of the parties to the escrow, d) only when the written instructions require recording.
- Correct Answers -B
Usury Law is defines as: a) the right to use the surface of real property, b) is applicable
to the prescriptive easement of ingress and egress, c) the maximum amount of interest
which can be charged on a security instrument, d) the appurtenant right to use a right of
way for ingress and egress. - Correct Answers -C
What characteristics should an escrow officer maintain? a) abstractor, b) competent, c)
legal advisor, d) impartial, e) has the right to foreclose, f) follows instructions. - Correct
Answers -B, D, F
What is the minimum number of parties to an escrow? - Correct Answers -3
An Earnest Money Agreement usually does not reveal the following: a) property
address, b) buyers' and sellers' name, c) title exceptions, d) improvements to the
subject property, e) personal property to be included in the sale. - Correct Answers -C
An escrow agent has the responsibility to review the following, with the parties involved
in a real estate transaction: a) the Title Report, b) the Earnest Money Agreement, c) the
Owners' Policy, d) Certificate of Apportionment, e) Letters of Testamentary. - Correct
Answers -A
What is a Bill of Sale? a) same as a warranty deed, b) instrument to transfer mineral
rights, c) used to convey personal property, d) a certificate concerning well rights, e)
instrument to convey a title policy. - Correct Answers -C
On an assumption, the following information should be obtained from the lender: a)
payment history, b) FHA premium information, c) fire insurance information, d) reserve
(impound) balance, e) certificate of approval on buyer, f) delinquent payment and late
fees paid, g) marital status. - Correct Answers -B, C, D
, Date of possession is used in the closing to determine: a) the date of the closing, b) the
date to be placed on the documents, c) the date used for prorations, d) the date of
recording. - Correct Answers -C
A Title Report or Commitment contains the following information, necessary for the
closing: a) property address, b) zoning, c) encumbrances, d) fire insurance information,
e) tax information, f) vested owners. - Correct Answers -C, E, F
A licensed escrow agent has the authority to draw up the necessary documents to the
escrow by reason of: a) the Utah Bulk Sales Act, b) Insurance Act, c) the Paralegal Act,
d) the Utah Escrow Act. - Correct Answers -B
An escrow agent can determine liens against personal property by a) obtaining a UCC
II, b) searching the personal property index, c) checking with the county treasurer, d)
calling the state auditor. - Correct Answers -A
In an exchange escrow, an escrow agent: a) certifies that the escrow qualifies for a
1031 tax free exchange, b) closes on more than one transaction simultaneously, c)
deals with foreign currency, d) prepares duplicate settlement statements. - Correct
Answers -B
Any reservations pertaining to the surface of real property should appear on: a) the
promissory note, b) the bill of sale, c) the face of the Warranty Deed, d) the UCC 3, e)
Schedule A of the lenders title policy. - Correct Answers -C
It is the escrow agent's job to determine: a) liability in the event damage or destruction
of the property which is the subject of the escrow, b) any claim on the title policy, c) the
validity of all documents, d) when possession is scheduled. - Correct Answers -D
Loan closings differ from regular sale closings by reason of the fact that loan closings
contain the following: a) discount points, b) interest rate adjustments, c) origination rate
adjustments, d) warehousing fees. - Correct Answers -A, D
Private Mortgage Insurance premiums are: a) prepaid, b) paid in arrears, c) paid to
FmHA, d) never prorated. - Correct Answers -A
FHA premiums are: a) included in the origination fee, b) handled outside of escrow, c)
paid by the selling agent, d) none of the above. - Correct Answers -D
The information from a lender on the assumption of a mortgage should be compared
with: a) the Earnest Money Agreement, b) Warranty Deed, c) the Bill of Sale, d) the
Restrictive Covenants. - Correct Answers -A
If there is a counter offer to the original Earnest Money Receipt and Offer to Purchase:
a) it is necessary to have a new Earnest Money Agreement prepared, b) it must be
