Escrow and Closing QUESTIONS WITH COMPLETE SOLUTIONS

The best way to discover defects on a title is by: CORRECT ANSWERS: a search of title A title search will reveal the chain of title and any defects that may exist against the title. The CLTA standard form title insurance policy insures against CORRECT ANSWERS: forgery of a deed. It insures matters of record not specifically excluded from coverage as well as matters not on record. Items not on record specifically insured against include forgery. When transactions involving the sale of real estate are placed in escrow, this means CORRECT ANSWERS: a designated agent agreed to by the parties holds the necessary documents until the terms are met. Escrow is the depositing of funds, documents, and other instruments by a buyer, seller, or lender with a neutral third party for delivery upon completion of the terms of the escrow instructions. When a real estate sales transaction is to be closed in escrow, the escrow officer CORRECT ANSWERS: is neutral with respect to the interest of each party to the transaction. In their capacity as a dual agent, the escrow agent must always be neutral or impartial. Which does accurately reflect the duties of escrow agents? CORRECT ANSWERS: - They are to act impartially for both the buyer and seller. - They must act as fiduciaries until escrow is closed. - They must follow escrow instructions.