Manufactured Housing Practice Test

If a purchaser is to furnish financing without the assistance of the dealer, what must the escrow instructions include?

1. Escrow may be closed upon the buyer's obtaining approval for financing

2. All funds held in escrow as a deposit shall be returned to the dealer

3. Escrow instructions shall include a statement that escrow will terminate in 30 days unless confirmation of financing is delivered

4. All the above

The correct answer is: Escrow instructions shall include a statement that escrow will terminate in 30 days unless confirmation of financing is delivered

The correct answer highlights the importance of clearly defined conditions within escrow instructions, particularly when a purchaser is providing their own financing without dealer assistance. Having a statement that escrow will terminate in 30 days unless confirmation of financing is delivered ensures that there is a definitive time frame for the transaction to move forward. This clause serves to protect both the interests of the seller and the buyer by creating a sense of urgency and clarity regarding the financing process. It prevents extended delays and allows for a structured approach to closing the sale. This approach addresses potential complications that can arise when financing is uncertain. By stipulating a time limit, it encourages the buyer to secure financing promptly, and if they cannot do so within the established period, the escrow can be cleared, allowing for other transactions to be pursued. This measure also helps in managing expectations and ensures all parties are aware of the consequences of not securing the necessary financing in a timely manner.