A California escrow officer is preparing the closing documents for a residential transaction. Which of the following is NOT a typical duty of a California escrow holder?
Correct Answer
C) Providing legal advice to the buyer and seller regarding the purchase agreement terms
Providing legal advice is NOT a duty of the escrow holder. Escrow officers are not attorneys and are prohibited from giving legal advice to the parties. They are neutral facilitators who follow written instructions. If legal questions arise, the escrow officer should recommend that the parties consult their own attorneys.
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Previous Question
A property in Santa Clara County closes on March 20. The annual property tax of $12,000 has not been paid for the current fiscal year (July 1 through June 30). Using a 360-day year and 30-day months, how much property tax will the seller owe at closing?
Next Question
A California property is sold for $1,200,000. The seller has an existing mortgage balance of $450,000. The seller agreed to pay a 5% commission to the listing brokerage, which splits 50/50 with the buyer's brokerage. What are the seller's approximate net proceeds from the sale, before considering closing costs, taxes, and other fees?