Chabot College
Fall 2007
Course Outline for Real Estate 86
ESCROWS
Catalog Description:
86 – Escrows
3 units
Escrow procedures for various types of business transactions with emphasis on real estate.
Preparation, processing and closing of sales and escrow documents in the transferring, encumbering,
and describing of real property. Title search and reports. Prerequisite: Real Estate 80. 3 hours.
Prerequisite Skills:
Before entering this course, the student should be able to:
1. identify each of the steps and stages in a typical residential home sale;
2. list the services that a real estate agent provides to home buyers;
3. distinguish between real property and personal property;
4. list the three major methods used to describe land in legal documents.
5. describe the methods of holding title;
6. define the term “easement”;
7. list the different types of categories into which zoning ordinances divide a community;
8. define the term “eminent domain”;
9. explain the statute of frauds;
10. define the term “listing agreement”;
11. describe the agency relationship;
12. recall the four essential elements of value;
13. recognize the purpose and importance of an MAI appraisal;
14. differentiate between a “Seller’s” market and a “Buyer’s” market;
15. compare the advantages of renting to the advantages of buying;
16. solve capitalization problems using the capitalization approach to value.
Expected Outcomes for Students:
Upon completion of this course, the student should be able to:
1. explain the escrow process in detail;
2. list the steps involved in escrow;
3. prepare escrow instructions from a (PSA) purchase sale agreement;
4. arrange for and clear identified contingencies of an escrow;
5. organize the time line necessary for completion of escrow.
Course Content:
1. Introduction:
a. history
b. concepts
2. Requisites of a valid escrow:
a. duties and responsibilities of the escrow holder
b. principal parties to the escrow
c. mutuality of instructions
3. Contents of an escrow:
a. escrow instructions
b. legal documents
c. preliminary title report
Chabot College
Course Outline for Real Estate 86, Page 2
Fall 2007
4. Processing the escrow:
a. opening an escrow and ordering a preliminary title search
b. preparations of buyers’, sellers’ and brokers’ instructions
c. lenders’ instructions
d. preparation of grant deed, promissory notes and deeds of trust
e. processing of pay-off demands, broker’s commission, termite reports and fire insurance
policies
5. Closing an escrow:
a. mutual understanding of all terms
b. final examination of recording documents
c. recordation
d. auditing and disbursement of funds
e. preparation of closing statements
f. ordering of title insurance policy
6. Title insurance:
a. types of title policies
b. coverage of title insurance policies
7. Escrow procedure for the handling of special title problems:
a. escrowing the foreclosure
b. divorces, judgments, bankruptcy, mechanic’s liens and homesteads.
Methods of Presentation:
1. Lecture
2. Discussion
3. Problem solving
Assignments and Methods of Evaluating Student Progress:
1. Typical Assignments
a. Research 6 Title & Escrow companies rating them based on market coverage, financial
stability range of services offered and reputation in the market place. Bring findings to class
and be prepared to discuss with fellow students.
b. Schedule an appointment with a local title company and “interview” them probing for
information on topics covered in chapters 1-5. Document your findings and present to the
class.
c. Locate an opportunity in the marketplace where title companies may be able to expand their
services and market share. Identify this opportunity with a plan for capitalizing on and
converting the opportunity into increased revenue.
2. Methods of Evaluating Student Progress
a. Examinations
b. Assignments
c. Final Examination
Textbook(s) (Typical):
Escrow Principles, 4th Edition, Price, Ashley Crown, 2004
Special Student Materials:
None
JM/Sept2006
Revised 10/13/06, 11/3/06
RE86