ESCROW MIDTERM STUDY WITH
COMPLETE SOLUTIONS
Escrows Required by law - Correct Answers -probated property, liquor licenses,
mortgage impound accounts, negotiable securities (like selling 2nd deeds of trust)
Escrows Recommended - Correct Answers -sales of real property, loans, and
exchanges
The third person: - Correct Answers -is the escrow officer called the "stakeholder"
Stakeholder: - Correct Answers -is the agent of the respective parties until the escrow
closes
escrow instructions: - Correct Answers -advise the escrow officer how to make the
arrangements for completing the transaction and he or she should not deviate from
them
Real property - Correct Answers -is land and those things affixed to it: a thing is affixed
to land if: 2) it is attached to the land by roots, it is imbedded init, such as a retaining
wall, a basement, well or spetic system 3) it is permanently resting on it such as a
building or parking lot 4) it is attached to 1, 2, 3, by way of mortar, nails bolts or screw
this is called a fixture
Valid contracts - Correct Answers -consist of capable parties, consent and writing,
stated conditions, lawful nature, and sufficient consideration, and forgery prevention
Who can conduct Escrows - Correct Answers -escrow agent corporations, attourneys-
at-law, real estate brokers, and institutional escrow departments
Escrow HOlder is - Correct Answers -an agent to their principal
An agent - Correct Answers -is anyone who is properly authorized to act for another
An Escrow Officer - Correct Answers -is and agent to both principles they are in a
fiduciary principles meaning they must act in the highest faith, and to protect the trust
and confidence of their pricnipals
The Escrow process is basically the same through out California true or false. - Correct
Answers -true
, separate instruction documents written for buyers and sellers are called - Correct
Answers -unilateral instructions and are done in northern california
a single instruction documents signed by both buyer and seller - Correct Answers -is a
bilateral instructions (done in southern california
A deed - Correct Answers -is a written instrument which transfers the title to real
property from one owner to another
two types of deeds - Correct Answers -grant-type conveys freehold estate and
quitclaim-type conveys less-than-freehold estate
warranty deed - Correct Answers -spell out in specific wording exactly what they
warrant; usually that the grantor has lawful authority to sell or transfer title, and that he
or she will defend the title against the claims of others.
grant deed - Correct Answers -is a document that transfers title (evidence of property
ownership) with they key word being "grant"
grift deed - Correct Answers -sub type of grant deed. granted as a gift of love and
affection no other consideration is necessary but is void if give to defraud creditors
Tax deed - Correct Answers -sub type of grant deed given if property is sold as payment
of past-due property taxes (tax sale)
sheriff's deed - Correct Answers -sub type of grant deed. granted to the purchaser at a
court-ordered sale
administrators deeds or executor's deeds - Correct Answers -sub type of grant deed
given to the purchaser of the deceased person's real property
trustee's deeds - Correct Answers -sub type of grant deed given to the purchaser of
property at a trust deed foreclosure sale
guardian's deeds - Correct Answers -sub type of grant deed used by a guardian to
transfer the real property of minors or incompetents
vesting - Correct Answers -are ways to hold title ownership. the names of the grantees
must be followed by the manner in which they plan to take title.
severality - Correct Answers -(vesting) ownership by one person or corporation.
tenancy in common - Correct Answers -(vesting) can be the vesting when two or more
persons own property together
COMPLETE SOLUTIONS
Escrows Required by law - Correct Answers -probated property, liquor licenses,
mortgage impound accounts, negotiable securities (like selling 2nd deeds of trust)
Escrows Recommended - Correct Answers -sales of real property, loans, and
exchanges
The third person: - Correct Answers -is the escrow officer called the "stakeholder"
Stakeholder: - Correct Answers -is the agent of the respective parties until the escrow
closes
escrow instructions: - Correct Answers -advise the escrow officer how to make the
arrangements for completing the transaction and he or she should not deviate from
them
Real property - Correct Answers -is land and those things affixed to it: a thing is affixed
to land if: 2) it is attached to the land by roots, it is imbedded init, such as a retaining
wall, a basement, well or spetic system 3) it is permanently resting on it such as a
building or parking lot 4) it is attached to 1, 2, 3, by way of mortar, nails bolts or screw
this is called a fixture
Valid contracts - Correct Answers -consist of capable parties, consent and writing,
stated conditions, lawful nature, and sufficient consideration, and forgery prevention
Who can conduct Escrows - Correct Answers -escrow agent corporations, attourneys-
at-law, real estate brokers, and institutional escrow departments
Escrow HOlder is - Correct Answers -an agent to their principal
An agent - Correct Answers -is anyone who is properly authorized to act for another
An Escrow Officer - Correct Answers -is and agent to both principles they are in a
fiduciary principles meaning they must act in the highest faith, and to protect the trust
and confidence of their pricnipals
The Escrow process is basically the same through out California true or false. - Correct
Answers -true
, separate instruction documents written for buyers and sellers are called - Correct
Answers -unilateral instructions and are done in northern california
a single instruction documents signed by both buyer and seller - Correct Answers -is a
bilateral instructions (done in southern california
A deed - Correct Answers -is a written instrument which transfers the title to real
property from one owner to another
two types of deeds - Correct Answers -grant-type conveys freehold estate and
quitclaim-type conveys less-than-freehold estate
warranty deed - Correct Answers -spell out in specific wording exactly what they
warrant; usually that the grantor has lawful authority to sell or transfer title, and that he
or she will defend the title against the claims of others.
grant deed - Correct Answers -is a document that transfers title (evidence of property
ownership) with they key word being "grant"
grift deed - Correct Answers -sub type of grant deed. granted as a gift of love and
affection no other consideration is necessary but is void if give to defraud creditors
Tax deed - Correct Answers -sub type of grant deed given if property is sold as payment
of past-due property taxes (tax sale)
sheriff's deed - Correct Answers -sub type of grant deed. granted to the purchaser at a
court-ordered sale
administrators deeds or executor's deeds - Correct Answers -sub type of grant deed
given to the purchaser of the deceased person's real property
trustee's deeds - Correct Answers -sub type of grant deed given to the purchaser of
property at a trust deed foreclosure sale
guardian's deeds - Correct Answers -sub type of grant deed used by a guardian to
transfer the real property of minors or incompetents
vesting - Correct Answers -are ways to hold title ownership. the names of the grantees
must be followed by the manner in which they plan to take title.
severality - Correct Answers -(vesting) ownership by one person or corporation.
tenancy in common - Correct Answers -(vesting) can be the vesting when two or more
persons own property together
