Ch 12 Quizzes Flashcards
A(n) _____ is a third party who holds deeds and funds until the closing date.
Escrow agent
T/F: Deposits in escrow may be transferred from one party to the other without conditions.
False
A depositor must require that certain events occur before the deposit can be transferred to the other party.
T/F: A buyer who works for an escrow agent may act as the escrow agent in his own transaction.
FALSE
A buyer or seller may not act as an escrow agent in his or her own transaction.
T/F: An escrow deposit can be revoked
False  A valid escrow must have four basic elements: an enforceable contract, a neutral escrow agent, irrevocable deposits, and conditions imposed on those deposits
Who do escrow agents owe fiduciary duties to?
both the buyer and seller, as well as any other parties to the escrow (such as a lender).
T/F: escrow agents are dual agents
True
Escrow agents are licensed through the Department of _____
Business Oversight
When may a real estate broker be exempt from the license requirement for escrow agents?
when providing escrow services incidental to a real estate transaction in which he is acting as a real estate agent.
All escrow companies must post a ____ bond.
Surety
Surety vs fidelity bond
Surety:
Fidelity:
Escrow companies must maintain at least $_____ in liquid assets
$25,000
Escrow instructions are usually issued ____ the purchase agreement
after
If 2 contracts conflict, the court will rely on the provisions of the ____ contract
a) original
b) most recent
B) most recent
T/F: Once a depositor puts funds into escrow, he no longer owns those funds.
False
The general rule is that the depositor still owns the deposit, until all escrow conditions have been satisfied.
The Uniform Vendor and Purchaser Risk Act states that if possession transferred before the property was destroyed, the buyer must pay the full purchase price.
True
Under the Risk Act, if title or possession were transferred before the loss occurred, then the buyer remains responsible for the purchase price.
(T/F) The parties should enter into an interim occupancy agreement if a buyer takes possession before closing
True
An interim occupancy agreement is advisable if a buyer takes possession prior to closing, regardless of how the parties allocate the risk.