Question

In a completion escrow account, what is the minimum estimated repair cost held in trust by a lender?

A) 50% of the property's value
B) 10% of the property's value
C) 5% of the property's value
D) The actual cost of repairs incurred by the borrower

Answer 1

The minimum estimated repair cost held in trust by a lender in a completion escrow account is typically related to the actual cost of repairs, not a set percentage of the property's value.

Step-by-step explanation:

The question refers to a completion escrow account, which is related to real estate transactions, particularly concerning repair costs that may be held by the lender until certain work is verified to be complete.

Although the question provides options as possible answers, it is important to note that the correct answer might vary based on lender policies or other specific conditions of a loan agreement.

Typically, the amount held is not a set percentage of the property's value but rather related to the actual cost of repairs.

Therefore, the best response based on typical practice would be the actual cost of repairs.