A California escrow officer is compiling the closing documents for a residential sale. Which of the following is NOT typically handled by the escrow holder during the closing process?
Correct Answer
A) Negotiating the terms of the purchase agreement between buyer and seller
Negotiating the terms of the purchase agreement is NOT a function of the escrow holder. The escrow holder is a neutral third party that executes the instructions provided by the buyer and seller. Negotiation of terms is the role of the real estate agents and/or attorneys representing the parties.
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Previous Question
A foreign person (non-U.S. citizen, non-resident alien) sells a California investment property for $500,000. The buyer does not intend to use the property as a personal residence. What is the applicable FIRPTA withholding rate?
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An escrow officer in Sacramento is prorating the seller's homeowner association (HOA) dues at closing. The quarterly HOA dues are $1,800, payable on January 1, April 1, July 1, and October 1. The seller has paid the current quarter (April 1 through June 30). The closing date is May 15. Using a 30-day month, how much credit is the buyer owed for the HOA dues the seller has prepaid beyond the closing date?