Escrow Sample Test UPDATED ACTUAL
Questions and CORRECT 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 ANSWER✔✔- 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
ANSWER✔✔- 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 ANSWER✔✔- 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
ANSWER✔✔- B, D, F
What is the minimum number of parties to an escrow? - CORRECT ANSWER✔✔- 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 ANSWER✔✔- 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
ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- A, D
Questions and CORRECT 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 ANSWER✔✔- 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
ANSWER✔✔- 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 ANSWER✔✔- 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
ANSWER✔✔- B, D, F
What is the minimum number of parties to an escrow? - CORRECT ANSWER✔✔- 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 ANSWER✔✔- 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
ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- 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 ANSWER✔✔- A, D
