A California escrow has just been opened following execution of a purchase agreement. The escrow officer is preparing the initial escrow instructions and coordinating the early-stage workflow. Which of the following correctly describes the sequence of two activities that typically occur at the SAME early stage of escrow, before contingency deadlines begin to run?
Correct Answer
B) The escrow officer orders the preliminary title report, and the buyer deposits earnest money and begins scheduling property inspections
Immediately after escrow opens, two parallel early-stage activities are initiated: the escrow officer orders the preliminary title report from the title company so that title condition can be evaluated before contingency deadlines expire, and the buyer deposits the earnest money and begins scheduling inspections (general, pest/WDO, roof, etc.) within the inspection contingency window. Both activities must occur early because the preliminary title report informs the seller's obligation to clear title defects, and inspection results drive the buyer's contingency removal decisions — both of which have contractual deadlines that begin running from the opening of escrow under the California Residential Purchase Agreement (C.A.R. Form RPA).
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Previous 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?
Next Question
In a California residential transaction, the purchase agreement designates one party to provide a home warranty to the buyer. At closing, the escrow officer deducts the warranty cost from that party's proceeds. Which party is most commonly designated to provide the home warranty under a standard California Residential Purchase Agreement?