Lesson_12 - Printable Lesson Materials Print these...

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Printable Lesson Materials 13218 NE 20th Street Bellevue, WA 98005 425-747-7272 800-221-9347 www.rockwellinstitute.com Print these materials as a study guide This portion of your printable materials consists of dozens of frames that summarize the content in this lesson. The frames are arranged on the page to make it easy for you to study the material and add your own notes from your textbook or the online course. Graphic Summaries Many students learn best from sets of questions, and this multiple choice quiz allows you to focus your review of the material to important topics. Quizzes These printable materials allow you to study away from your computer, which many students find beneficial. These materials consist of two parts: graphic summaries of the content and a multiple choice quiz . © 2009 Rockwell Institute
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California Real Estate Law © Copyright 2007 Rockwel Publishing, Inc. Lesson 12: Escrow and Title Insurance © Copyright 2007 Rockwel Publishing, Inc. Introduction This lesson will discuss: l requirements for valid escrow l escrow agents l escrow instructions l ownership of deposits during escrow l terminating escrow l RESPA l title insurance © Copyright 2007 Rockwel Publishing, Inc. Escrow Escrow : buyer and seller complete closing process by making deposits with escrow agent, who releases deposits once certain conditions are met Example: Seller deposits deed and buyer deposits purchase funds with escrow agent. Later, escrow agent releases deed to buyer and money to seller. Basics
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© Copyright 2007 Rockwel Publishing, Inc. Escrow Escrow agent : neutral third party l buyer and seller deposit funds, legal documents, etc. with escrow agent Parties give escrow agent escrow instructions : conditions to be fulfilled before agent may release deposit to each party Agent © Copyright 2007 Rockwel Publishing, Inc. Escrow In addition to holding/releasing deposited items, escrow agents often handle other closing details: l ordering title insurance l preparing documents Agent’s role © Copyright 2007 Rockwel Publishing, Inc. Requirements for Valid Escrow Four basic elements of a valid escrow: l enforceable contract l neutral escrow agent l irrevocable deposits l conditions imposed on deposits
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© Copyright 2007 Rockwel Publishing, Inc. Requirements for Valid Escrow Escrow can’t be opened for transaction unless parties have an enforceable contract. l contract is usually purchase agreement (must be in writing) Enforceable contract © Copyright 2007 Rockwel Publishing, Inc. Requirements for Valid Escrow Escrow agent must be neutral third party. l buyer or seller can’t be escrow agent in own transaction l escrow agent is dual agent Buyer’s or seller’s attorney can act as escrow agent if all parties agree. l but attorney must not violate duties to original client Neutral escrow agent © Copyright 2007 Rockwel Publishing, Inc.
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Lesson_12 - Printable Lesson Materials Print these...

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