Escrow Sample Test Questions and Answers Rated A

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Escrow Sample Test Questions and Answers Rated A 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. ✔✔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. ✔✔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. ✔✔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. ✔✔B, D, F What is the minimum number of parties to an escrow? ✔✔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. ✔✔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. ✔✔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. ✔✔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. ✔✔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. ✔✔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. ✔✔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. ✔✔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. ✔✔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. ✔✔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

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