North Carolina Broker Reciprocal Practice Exam 2025 - Free Broker License Practice Questions and Study Guide

The legal document that commonly outlines the terms of an escrow arrangement is the Escrow Agreement. This document delineates the responsibilities and instructions for the escrow agent, the parties involved, and the conditions under which the escrow funds or documents will be released.

In essence, the Escrow Agreement serves to protect all parties involved by ensuring that the conditions agreed upon in a real estate transaction are meticulously followed. It provides clarity on what is to be held in escrow, such as funds, documents, or agreements, and details the process for releasing these items once the specified conditions are met, ultimately facilitating a smooth transaction.

The other options, while related to real estate transactions, do not specifically detail the terms of an escrow arrangement. The Listing Agreement pertains to the agreement between a seller and a broker to sell a property, the Purchase Agreement outlines the terms between buyer and seller regarding the sale of a property, and the Title Report provides information on the ownership and any liens or encumbrances on a property, but none of these documents govern the specifics of escrow arrangements like the Escrow Agreement does.