Under California law, which of the following correctly identifies all entities authorized to conduct escrow in a real estate transaction?
Correct Answer
B) Licensed escrow companies, title insurers, banks, savings institutions, and attorneys acting in the course of their law practice
Under California Financial Code §17006, the entities exempt from the requirement to hold an escrow license — and therefore authorized to conduct escrow — include licensed escrow companies, title insurance companies, banks, savings institutions, and attorneys acting in the course of their law practice. This is the complete list of non-broker authorized parties under the statute.
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Previous 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?
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A buyer is purchasing a home in San Diego for $650,000. The buyer is putting 20% down and obtaining a 30-year fixed mortgage at 6.5% annual interest. The lender requires the buyer to prepay the first month's interest at closing. What is the prepaid interest amount for one month?