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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Related Topics & Key Terms
Key Terms:
Related Concepts
Title insurance is a policy that protects the insured party against financial loss from defects in title that were not discovered during the title search. Unlike other insurance, it covers past events rather than future risks.
A title search is an examination of public records to determine the history of ownership, liens, encumbrances, and other interests affecting a property. It verifies that the seller has the legal right to transfer the property.
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
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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). Escrow charges the seller for taxes through and including the day of closing, 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?