California Real Estate Practice Exam

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Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

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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.