Escrow Sample Test 2023 Questions and Answers with
complete solution
An escrow is an arrangement that: a) Holds documents, b) Holds funds, c) Creates
documents to affect a transfer of interest in property, d) is responsible for guaranteeing
funds.
A, B, C, E
When is it necessary to have closing documents recorded prior to disbursement of
escrow funds? a) it is not necessary, b) in almost all situations, c) when instructed by
one of the parties to the escrow, d) only when the written instructions require recording.
B
Usury Law is defines as: a) the right to use the surface of real property, b) is applicable
to the prescriptive easement of ingress and egress, c) the maximum amount of interest
which can be charged on a security instrument, d) the appurtenant right to use a right of
way for ingress and egress.
C
What characteristics should an escrow officer maintain? a) abstractor, b) competent, c)
legal advisor, d) impartial, e) has the right to foreclose, f) follows instructions.
B, D, F
What is the minimum number of parties to an escrow?
3
An Earnest Money Agreement usually does not reveal the following: a) property
address, b) buyers' and sellers' name, c) title exceptions, d) improvements to the
subject property, e) personal property to be included in the sale.
C
An escrow agent has the responsibility to review the following, with the parties involved
in a real estate transaction: a) the Title Report, b) the Earnest Money Agreement, c) the
Owners' Policy, d) Certificate of Apportionment, e) Letters of Testamentary.
A
What is a Bill of Sale? a) same as a warranty deed, b) instrument to transfer mineral
rights, c) used to convey personal property, d) a certificate concerning well rights, e)
instrument to convey a title policy.
C
On an assumption, the following information should be obtained from the lender: a)
payment history, b) FHA premium information, c) fire insurance information, d) reserve
(impound) balance, e) certificate of approval on buyer, f) delinquent payment and late
fees paid, g) marital status.
B, C, D
Date of possession is used in the closing to determine: a) the date of the closing, b) the
date to be placed on the documents, c) the date used for prorations, d) the date of
recording.
C
A Title Report or Commitment contains the following information, necessary for the
closing: a) property address, b) zoning, c) encumbrances, d) fire insurance information,
e) tax information, f) vested owners.
, C, E, F
A licensed escrow agent has the authority to draw up the necessary documents to the
escrow by reason of: a) the Utah Bulk Sales Act, b) Insurance Act, c) the Paralegal Act,
d) the Utah Escrow Act.
B
An escrow agent can determine liens against personal property by a) obtaining a UCC
II, b) searching the personal property index, c) checking with the county treasurer, d)
calling the state auditor.
A
In an exchange escrow, an escrow agent: a) certifies that the escrow qualifies for a
1031 tax free exchange, b) closes on more than one transaction simultaneously, c)
deals with foreign currency, d) prepares duplicate settlement statements.
B
Any reservations pertaining to the surface of real property should appear on: a) the
promissory note, b) the bill of sale, c) the face of the Warranty Deed, d) the UCC 3, e)
Schedule A of the lenders title policy.
C
It is the escrow agent's job to determine: a) liability in the event damage or destruction
of the property which is the subject of the escrow, b) any claim on the title policy, c) the
validity of all documents, d) when possession is scheduled.
D
Loan closings differ from regular sale closings by reason of the fact that loan closings
contain the following: a) discount points, b) interest rate adjustments, c) origination rate
adjustments, d) warehousing fees.
A, D
Private Mortgage Insurance premiums are: a) prepaid, b) paid in arrears, c) paid to
FmHA, d) never prorated.
A
FHA premiums are: a) included in the origination fee, b) handled outside of escrow, c)
paid by the selling agent, d) none of the above.
D
The information from a lender on the assumption of a mortgage should be compared
with: a) the Earnest Money Agreement, b) Warranty Deed, c) the Bill of Sale, d) the
Restrictive Covenants.
A
If there is a counter offer to the original Earnest Money Receipt and Offer to Purchase:
a) it is necessary to have a new Earnest Money Agreement prepared, b) it must be
signed by both buyer and seller, c) it is only approved by the sales agent, d) it may be
verbal, e) must be in writing.
B, E
A Bill of Sale is used when: a) the property is being sold under a Uniform Real Estate
Contract, b) when the buyer requests a UCC I search, c) when personal property is
involved in the transaction, d) an All Inclusive Deed of Trust is prepared.
C
complete solution
An escrow is an arrangement that: a) Holds documents, b) Holds funds, c) Creates
documents to affect a transfer of interest in property, d) is responsible for guaranteeing
funds.
A, B, C, E
When is it necessary to have closing documents recorded prior to disbursement of
escrow funds? a) it is not necessary, b) in almost all situations, c) when instructed by
one of the parties to the escrow, d) only when the written instructions require recording.
B
Usury Law is defines as: a) the right to use the surface of real property, b) is applicable
to the prescriptive easement of ingress and egress, c) the maximum amount of interest
which can be charged on a security instrument, d) the appurtenant right to use a right of
way for ingress and egress.
C
What characteristics should an escrow officer maintain? a) abstractor, b) competent, c)
legal advisor, d) impartial, e) has the right to foreclose, f) follows instructions.
B, D, F
What is the minimum number of parties to an escrow?
3
An Earnest Money Agreement usually does not reveal the following: a) property
address, b) buyers' and sellers' name, c) title exceptions, d) improvements to the
subject property, e) personal property to be included in the sale.
C
An escrow agent has the responsibility to review the following, with the parties involved
in a real estate transaction: a) the Title Report, b) the Earnest Money Agreement, c) the
Owners' Policy, d) Certificate of Apportionment, e) Letters of Testamentary.
A
What is a Bill of Sale? a) same as a warranty deed, b) instrument to transfer mineral
rights, c) used to convey personal property, d) a certificate concerning well rights, e)
instrument to convey a title policy.
C
On an assumption, the following information should be obtained from the lender: a)
payment history, b) FHA premium information, c) fire insurance information, d) reserve
(impound) balance, e) certificate of approval on buyer, f) delinquent payment and late
fees paid, g) marital status.
B, C, D
Date of possession is used in the closing to determine: a) the date of the closing, b) the
date to be placed on the documents, c) the date used for prorations, d) the date of
recording.
C
A Title Report or Commitment contains the following information, necessary for the
closing: a) property address, b) zoning, c) encumbrances, d) fire insurance information,
e) tax information, f) vested owners.
, C, E, F
A licensed escrow agent has the authority to draw up the necessary documents to the
escrow by reason of: a) the Utah Bulk Sales Act, b) Insurance Act, c) the Paralegal Act,
d) the Utah Escrow Act.
B
An escrow agent can determine liens against personal property by a) obtaining a UCC
II, b) searching the personal property index, c) checking with the county treasurer, d)
calling the state auditor.
A
In an exchange escrow, an escrow agent: a) certifies that the escrow qualifies for a
1031 tax free exchange, b) closes on more than one transaction simultaneously, c)
deals with foreign currency, d) prepares duplicate settlement statements.
B
Any reservations pertaining to the surface of real property should appear on: a) the
promissory note, b) the bill of sale, c) the face of the Warranty Deed, d) the UCC 3, e)
Schedule A of the lenders title policy.
C
It is the escrow agent's job to determine: a) liability in the event damage or destruction
of the property which is the subject of the escrow, b) any claim on the title policy, c) the
validity of all documents, d) when possession is scheduled.
D
Loan closings differ from regular sale closings by reason of the fact that loan closings
contain the following: a) discount points, b) interest rate adjustments, c) origination rate
adjustments, d) warehousing fees.
A, D
Private Mortgage Insurance premiums are: a) prepaid, b) paid in arrears, c) paid to
FmHA, d) never prorated.
A
FHA premiums are: a) included in the origination fee, b) handled outside of escrow, c)
paid by the selling agent, d) none of the above.
D
The information from a lender on the assumption of a mortgage should be compared
with: a) the Earnest Money Agreement, b) Warranty Deed, c) the Bill of Sale, d) the
Restrictive Covenants.
A
If there is a counter offer to the original Earnest Money Receipt and Offer to Purchase:
a) it is necessary to have a new Earnest Money Agreement prepared, b) it must be
signed by both buyer and seller, c) it is only approved by the sales agent, d) it may be
verbal, e) must be in writing.
B, E
A Bill of Sale is used when: a) the property is being sold under a Uniform Real Estate
Contract, b) when the buyer requests a UCC I search, c) when personal property is
involved in the transaction, d) an All Inclusive Deed of Trust is prepared.
C
