Chapter 10

Question 1

Escrow officers usually base their prorations on

Answer 1

a 30-day month. (In most prorations as part of the closing of a transaction, a 30-day month is used.)

Question 2

Which of the following provides the BEST protection?

Answer 2

Title insurance policy. page 311

Question 3

One of the main responsibilities of the seller is to

Answer 3

sign escrow instructions. page 304

Question 4

The escrow officer is a neutral third party who alternately represents both the buyer and seller in

Answer 4

a limited agency capacity. page 300

Question 5

With title insurance, the buyer ALWAYS receives

Answer 5

a preliminary report. page 330

Question 6

For a valid escrow, there must be a binding agreement and conditional delivery of the

Answer 6

instruments of transfer. page 299

Question 7

What does the escrow officer file when the buyer and seller are unable to resolve a dispute which prevents the closing of escrow?

Answer 7

An interpleader action. page 302

Question 8

In northern California, escrows are typically held by

Answer 8

title insurance companies. page 300

Question 9

Which of the following could NOT be an escrow holder?

Answer 9

Escrow partnership. page 309

Question 10

A real estate broker can handle an escrow when the broker

Answer 10

is the agent or a party to the transaction. page 301