Escrow: Chapter 1 Exam A With Complete Solutions!!

Escrow - Answer-(legal process) by which complex sale, exchange, or loan transaction involving real property is brought to completion. Escrows Required by law - Answer-Probated Property- in court dispute Impound AccountsLiquor LicensesNegotiable SecuritiesEscrows Recommended - Answer-Sales of Real Property Loans Exchanges Real Property - Answer-land and those things affixed to it (Attached by roots, imbedded, permanently resting on it, attached by mortar, nails, bolts, or escrew. Personal Property - Answer-anything which can be owned or possessed that is not real property. Valid Contracts - Answer--Capable Parties: any capable (No minors, convicts) -Mutual Consent & Writing: -Lawful nature -Sufficient Consideration -Stated Condition -Forgery Prevention (counterfeit or fraudulent) Purchase Agreement - Answer-document that is signed before entering into escrow Agent - Answer-one who represents a principal (person/party) in contracts with third person.Escrow Officer - Answer-stakeholder (agent) - to both principals (Buyers and sellers) - individual persons do not hold licences as escrow agents in California (Only corporations). Fiduciary Relationship - Answer-agent has a duty to act in the highest faith, and to protect the trust and confidence of his principals. Escrow Holders - Answer--Escrow Agent Corporations -Attorneys at Law -Institutional Escrow Departments -Real Estate Brokers California Escrow Association (CEA) - Answer-Founded in 1956 - dedicated to the professionalism of escrow personnel through education and legislation. California Land title Association (CLTA) - Answer-title companies, independent or subsidiaries: sets standards and procedures for the state's title companies. Bilateral Instructions - Answer-single escrow instruction signed by both buyers and sellers in the southern part of California Deed - Answer-written instrument which gives over the title to real property from one owner to another. Deed of Trust - Answer-device which secures the property as collateral for the note - when recorded, it becomes a lien. Escrow Instructions - Answer-operative document - preprinted forms that permit the listing of all the funds and documents which will move through escrow - condition of escrow also stated Grant Deed - Answer-document that transfer title (evidence of property ownership) - with key word "grant"Joint Tenancy - Answer-ownership by two or more persons with the right of survivorship Lien - Answer-recorded document that secures real property for an obligation or debt Quitclaim Deed - Answer-deed that releases whatever interest the grantor has in the property. Reconveyance - Answer-either full or partial that indicates a recorded release of the indebtedness against real property Tenancy in common - Answer-ownership by two or more persons without the right of survivorship Vesting - Answer-ways to hold title Community Property - Answer-requires individuals to be married Amendment to Instructions - Answer-change to either correct or alter or add to the escrow instructions to avoid any conflict in the instructions. Beneficiary - Answer-the lender in a trust deed loan transaction