Lenders May Require Escrow Accounts to Ensure That Property Taxes

question 116

True/False

Lenders may require escrow accounts to ensure that property taxes and insurance premiums are paid.

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Definitions:

Express Contract

A contract in which the terms are explicitly stated and agreed upon by the parties, either verbally or in writing.

Parol Evidence Rule

A legal principle in contract law that prevents parties from presenting extrinsic evidence of terms not included in the written contract.

Oral Evidence

Testimony or information presented in verbal form, as opposed to written or physical evidence, during legal proceedings.

Fraud

A deliberate deception practiced to secure unfair or unlawful gain, often involving financial transactions.