Unit 10: Escrow and Title Insurance Flashcards
Escrow
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.
Valid Escrow Requirements
- Binding Contract- between buyer and seller
- Conditional Delivery- of the instruments of transfer to the escrow holder.
Escrow Instructions
Written instructions to carry out the terms of the contract that is the basis of the transaction.
Bilateral Escrow Instructions
When the instructions are given by both parties jointly.
Unilateral Escrow Instructions
When the instructions are given separately by each of the parties.
Department of Business Oversight
The entity that issues Escrow licenses in California
An Escrow agent is not allowed to:
- 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.
Interpleader
Anytime the buyer and seller are unable to resolve a dispute about the deposit, the escrow holder can bring it to the courts.
Termite Companies are Licensed by:
The structural pest control board
Termite reports are available to who?
Anyone for a fee
If you get 2 Termite reports on a property what do you need to do?
Show both reports to the buyer
Standard Title Insurance Policy
Insures against certain risks.
Extended-Coverage Title Insurance Policy
Provides more extensive coverage and is particularly useful to lenders.
