California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

Practice this question and more.

Which of the following is not a duty of an escrow agent?

To prepare legal documents
To hold earnest money
To insure the property
To conduct an independent investigation of the transaction

The correct answer is: To conduct an independent investigation of the transaction

The other options are incorrect for the following reasons Option A - It is a duty of an escrow agent to prepare legal documents related to the transaction, such as the deed and transfer documents. Option B - One of the primary duties of an escrow agent is to hold the earnest money deposited by the buyer as a sign of good faith. Option C - While it is not typically a duty of an escrow agent to insure the property, the agent may be responsible for obtaining title insurance on the behalf of the buyer. Therefore, D is the correct answer as it is not a duty of an escrow agent to conduct an independent investigation of the transaction. This responsibility typically falls on the buyer or their legal representative.