In California residential escrow transactions, when does the escrow officer disburse sale proceeds to the seller?
Correct Answer
C) After the grant deed is recorded and all escrow conditions are satisfied
California escrow practice requires that the grant deed and deed of trust be recorded at the county recorder's office and all escrow conditions be fully satisfied before the escrow officer is authorized to disburse proceeds to the seller. Recording is the triggering event for disbursement, and funds are typically released to the seller by wire or check on the same day recording is confirmed.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Transfer Of Property Question
Background Knowledge for Transfer Of Property
Real World Application in Transfer Of Property
Common Mistakes to Avoid on Transfer Of Property Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
Adverse possession is a legal doctrine that allows a person to claim ownership of land by occupying it continuously for a statutory period under specific conditions, without the true owner's permission.
A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.
More Transfer Of Property Questions
Determining who pays what at closing involves:
Closing is always the _____ step in real estate transactions.
Depreciation on rental property for federal tax purposes is calculated over:
A title company examines the public records and finds that all deeds in the property's history are properly recorded and connect in an unbroken sequence. This unbroken sequence of ownership is called the
In a jurisdiction where a later purchaser must both lack notice and record before the earlier claimant records, what kind of recording act applies?
- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
- → In a covered purchase transaction, the borrower receives a final form showing the loan terms, cash to close, and settlement charges shortly before consummation. What form is this?
- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
- → On a settlement statement, the buyer's earnest money reduces the remaining cash needed to close. How is that item characterized?
- → On a settlement statement, an item increases the buyer's amount due at closing. How is that item characterized?
- → On the seller's settlement statement, the purchase price of $400,000 appears as what?
- → At closing, the purchase price of $350,000 appears on the buyer's side of the settlement statement. Is this amount a debit or a credit to the buyer?
- → Under TRID rules, the lender must deliver the Closing Disclosure to the borrower at least how many business days before loan consummation?
- → In an escrow closing, the escrow agent discovers that the seller has not yet provided the signed deed. What should the escrow agent do?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
How to Review Real Estate Ownership Transfer Questions Without Losing the Sequence
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for review real estate...
How to Review Real Estate Transfer Questions Without Mixing Deeds, Delivery, and Recording
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for review real estate...
How to Study Real Estate Ownership Questions by Comparing Rights, Forms, and Transfer Limits
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for study real estate...
Previous Question
Three business days before a scheduled California residential closing, the buyer's lender issues a Closing Disclosure showing that the loan's APR has increased beyond the TRID tolerance threshold compared to the original Loan Estimate. What must occur before closing can proceed?
Next Question
A California real estate broker is holding a buyer's earnest money deposit. The broker must deposit the funds into the broker's trust account. Under California DRE regulations, by when must the broker deposit the funds?