38-WA-03 Washington Escrow Exam
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Answers) Plus Rationales 2026 Q&A |
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1. What document initiates an escrow in Washington?
A. Grant Deed
B. Purchase Agreement
C. Deed of Trust
D. Escrow Instructions
Answer: D. Escrow Instructions
These define the terms and begin the escrow process.
2. Who holds the escrow funds?
A. Buyer
B. Seller
C. Escrow Officer
D. Lender
Answer: C. Escrow Officer
The escrow officer acts as neutral third-party custodian.
3. The escrow officer must follow instructions of:
A. Only the buyer
B. Only the seller
C. Both parties with written instructions
D. The lender only
, Answer: C. Both parties with written instructions
Escrow follows written instructions from all principals.
4. What is the primary purpose of escrow?
A. Financing the sale
B. Safeguarding funds/documents until conditions are met
C. Appraising property
D. Recording the deed
Answer: B. Safeguarding funds/documents until conditions are
met
Escrow protects parties until all terms are satisfied.
5. What form verifies buyer has funds for closing?
A. Loan Estimate
B. Proof of Funds
C. Deed
D. Title Report
Answer: B. Proof of Funds
Shows buyer’s ability to pay.
6. Who orders the title search?
A. Buyer
B. Escrow Officer
C. Lender
D. Appraiser
Answer: B. Escrow Officer
Escrow coordinates title search for closing.
7. What report shows existing liens?
A. Appraisal
B. Home Inspection
, C. Title Report
D. Survey
Answer: C. Title Report
It shows liens, encumbrances, easements.
8. Prorations at closing refer to:
A. Loan amounts
B. Proportionate share of expenses
C. Title fees
D. Recording fees
Answer: B. Proportionate share of expenses
Adjustments between buyer and seller for items like taxes.
9. The document that transfers ownership is:
A. Promissory Note
B. Deed
C. Escrow Instructions
D. Title Report
Answer: B. Deed
Deed conveys property title.
10. Who signs the deed?
A. Buyer
B. Seller
C. Escrow Officer
D. Appraiser
Answer: B. Seller
Seller transfers ownership to buyer.
11. What is RESPA?
A. State escrow law
Questions And Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A |
Instant Download Pdf
1. What document initiates an escrow in Washington?
A. Grant Deed
B. Purchase Agreement
C. Deed of Trust
D. Escrow Instructions
Answer: D. Escrow Instructions
These define the terms and begin the escrow process.
2. Who holds the escrow funds?
A. Buyer
B. Seller
C. Escrow Officer
D. Lender
Answer: C. Escrow Officer
The escrow officer acts as neutral third-party custodian.
3. The escrow officer must follow instructions of:
A. Only the buyer
B. Only the seller
C. Both parties with written instructions
D. The lender only
, Answer: C. Both parties with written instructions
Escrow follows written instructions from all principals.
4. What is the primary purpose of escrow?
A. Financing the sale
B. Safeguarding funds/documents until conditions are met
C. Appraising property
D. Recording the deed
Answer: B. Safeguarding funds/documents until conditions are
met
Escrow protects parties until all terms are satisfied.
5. What form verifies buyer has funds for closing?
A. Loan Estimate
B. Proof of Funds
C. Deed
D. Title Report
Answer: B. Proof of Funds
Shows buyer’s ability to pay.
6. Who orders the title search?
A. Buyer
B. Escrow Officer
C. Lender
D. Appraiser
Answer: B. Escrow Officer
Escrow coordinates title search for closing.
7. What report shows existing liens?
A. Appraisal
B. Home Inspection
, C. Title Report
D. Survey
Answer: C. Title Report
It shows liens, encumbrances, easements.
8. Prorations at closing refer to:
A. Loan amounts
B. Proportionate share of expenses
C. Title fees
D. Recording fees
Answer: B. Proportionate share of expenses
Adjustments between buyer and seller for items like taxes.
9. The document that transfers ownership is:
A. Promissory Note
B. Deed
C. Escrow Instructions
D. Title Report
Answer: B. Deed
Deed conveys property title.
10. Who signs the deed?
A. Buyer
B. Seller
C. Escrow Officer
D. Appraiser
Answer: B. Seller
Seller transfers ownership to buyer.
11. What is RESPA?
A. State escrow law
