Unit 10: Escrow and Title Insurance Flashcards

1
Q

Escrow

A

The possession by a neutral third person of money, a written instrument, evidence of title, or another thing of value that is received from one party to a transaction for delivery to other party to the transaction on the performance of one or more conditions at a specified time.

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2
Q

Valid Escrow Requirements

A
  • Binding Contract- between buyer and seller

- Conditional Delivery- of the instruments of transfer to the escrow holder.

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3
Q

Escrow Instructions

A

Written instructions to carry out the terms of the contract that is the basis of the transaction.

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4
Q

Bilateral Escrow Instructions

A

When the instructions are given by both parties jointly.

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5
Q

Unilateral Escrow Instructions

A

When the instructions are given separately by each of the parties.

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6
Q

Department of Business Oversight

A

The entity that issues Escrow licenses in California

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7
Q

An Escrow agent is not allowed to:

A
  • Pay a referral fee, a commission, or any other compensation.
  • Disclose any information concerning the transaction to outside parties.
  • Solicit or accept escrow instructions or amendments that contain blanks to be filled in after the escrow instructions are signed.
  • Give Advice on tax and legal matters.
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8
Q

Interpleader

A

Anytime the buyer and seller are unable to resolve a dispute about the deposit, the escrow holder can bring it to the courts.

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9
Q

Termite Companies are Licensed by:

A

The structural pest control board

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10
Q

Termite reports are available to who?

A

Anyone for a fee

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11
Q

If you get 2 Termite reports on a property what do you need to do?

A

Show both reports to the buyer

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12
Q

Standard Title Insurance Policy

A

Insures against certain risks.

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13
Q

Extended-Coverage Title Insurance Policy

A

Provides more extensive coverage and is particularly useful to lenders.

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