(1) Any person desiring to become a licensed escrow officer must successfully pass an examination.

     (2) The escrow officer examination shall encompass the following:

     (a) Appropriate knowledge of the English language, including reading, writing, and arithmetic;

     (b) An understanding of the principles of real estate conveyancing and the general purposes and legal effects of deeds, mortgages, deeds of trust, contracts of sale, exchanges, rental and optional agreements, leases, earnest money agreements, personal property transfers, and encumbrances;

     (c) An understanding of the obligations between principal and agent;

     (d) An understanding of the meaning and nature of encumbrances upon real property;

     (e) An understanding of the principles and practice of trust accounting; and

     (f) An understanding of the escrow agent registration act and other applicable law such as the real estate settlement procedures act, 12 U.S.C. Sec. 2601, and regulation X, 24 C.F.R. Sec. 3500.

     (3) The examination shall be in such form as prescribed by the director with the advice of the escrow commission, and shall be given at least annually.

[1999 c 30 § 4.]