Because the mortgage conveys a complex claim for a long period of time, clauses are included in anticipation of possible future complications. Which of the following clauses requires a borrower to make monthly deposits into an account in order to pay obligations such as property taxes, community association fees, or causality insurance premiums? a. exculpatory clause b. demand clause c. insurance clause d. escrow clause

Question

Social Studies

Marcella

22 January, 00:14

Because the mortgage conveys a complex claim for a long period of time, clauses are included in anticipation of possible future complications. Which of the following clauses requires a borrower to make monthly deposits into an account in order to pay obligations such as property taxes, community association fees, or causality insurance premiums? a. exculpatory clause b. demand clause c. insurance clause d. escrow clause

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Bentley · Answer 1

Escrow Clause

Explanation:

An escrow agreement is a document describing a relationship among parties where an asset is deposited with a third party by one party.

Once the contract conditions are met, this third party will then transfer the commodity to the second party.