Florida Broker Practice Exam

What must a licensee indicate in the purchase and sale agreement when using a title company/attorney escrow account?

1. The closing date and time

2. The title company's name, address, and phone number

3. The buyer's information

4. The amount of the deposit

The correct answer is: The title company's name, address, and phone number

When using a title company or attorney escrow account in a purchase and sale agreement, it is essential to specify the title company's name, address, and phone number. This information establishes clear communication channels and ensures that all parties involved in the transaction know where the escrow funds will be held and who is responsible for managing those funds. Providing the title company's contact details helps facilitate coordination between the buyer, seller, and the title agency or attorney, thereby streamlining the closing process. In real estate transactions, clarity and transparency are vital, and including the title company's information in the agreement supports these principles. It also helps in preventing any confusion or disputes that may arise regarding the handling of escrow funds, as parties can reference the designated title company directly if issues occur.