California Real Estate Practice Exam

Who orders the closing title insurance in an escrow?

1. The buyer

2. The seller

3. The escrow agent

4. The lender

The correct answer is: The escrow agent

The escrow agent is responsible for ordering the closing title insurance in an escrow. This is because the escrow agent acts as a neutral third-party in a real estate transaction and is responsible for handling the financial and legal aspects of the closing process. The buyer, seller, and lender may be involved in the decision-making process for the closing title insurance, but it is ultimately the responsibility of the escrow agent to ensure that it is ordered and obtained. Option A (the buyer) may be responsible for selecting and paying for their own individual title insurance policy, but they do not typically order the closing title insurance in an escrow. Option B (the seller) is not responsible for ordering the closing title insurance in an escrow, as they are not involved in the closing process once the sales agreement has been signed. Option D (the lender) may require the buyer to obtain title insurance for their own protection, but they do not typically order the closing title insurance in an escrow.