A first-time homebuyer in California asks her agent what 'opening escrow' means. The agent explains that opening escrow refers to:
Correct Answer
A) The process of depositing the signed purchase agreement and earnest money with the escrow company to begin the closing process
Opening escrow in California means delivering the signed purchase agreement, earnest money deposit, and initial escrow instructions to the escrow company. This formally begins the escrow process, during which the escrow holder will coordinate all activities necessary to close the transaction, including title searches, inspections, loan processing, and document preparation.
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- → 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?
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Previous Question
During a California escrow, the preliminary title report reveals a recorded IRS federal tax lien against the seller. The seller acknowledges the lien but insists the debt was satisfied months ago. What is the escrow officer's correct course of action?
Next Question
An escrow officer in California is closing a short sale transaction. The seller's lender has issued a written short sale approval letter specifying an approved net payoff amount and a closing deadline. Which of the following represents the escrow officer's PRIMARY closing obligation that is unique to a short sale compared to a conventional sale?