Arizona Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Arizona exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Arizona uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Arizona law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Arizona practice.
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Arizona Escrow & Title — Practice Questions & Answers
128 questions on Escrow & Title from the Arizona real estate question bank. First 10 are free — sign up to unlock all 128.
Q1. In Arizona real estate transactions, escrow is typically handled by:
Explanation
In Arizona, escrow and closing are typically handled by a licensed title company or escrow company. Arizona is not an attorney-closing state, so attorneys are not typically required to oversee residential closings.
Q2. Arizona requires that real estate sellers provide buyers with a disclosure statement about homeowner associations (HOAs). This disclosure must include:
Explanation
Arizona law (A.R.S. § 33-1806) requires sellers to provide buyers with HOA documents including the CC&Rs, bylaws, rules and regulations, financial statements, and disclosure of any pending assessments or special charges.
Q3. A title insurance policy that protects the lender against losses from title defects is called a:
Explanation
A lender's title insurance policy (mortgagee's policy) protects the lender's interest up to the loan amount. It is typically required by lenders. A separate owner's policy protects the buyer's equity.
Q4. The Arizona Affidavit of Disclosure is required when selling unsubdivided land of:
Explanation
Arizona requires an Affidavit of Disclosure for sales of unsubdivided rural land of 5 acres or more. The seller must disclose information about access, utilities, water, soil conditions, and other material facts about the rural property.
Q5. In Arizona, the seller typically pays which of the following closing costs?
Explanation
In Arizona, it is customary for the seller to pay the owner's title insurance premium and the real estate commission. Buyers typically pay for the lender's policy and their loan-related costs, though these costs are negotiable.
Q6. Recordation of a deed in Arizona provides:
Explanation
Recording a deed at the county recorder's office provides constructive notice — legal notice to the world — of the ownership transfer. Anyone who searches public records is presumed to have notice of recorded instruments.
Q7. In Arizona, escrow is BEST described as:
Explanation
Escrow is a neutral arrangement where a third party (escrow agent/company) holds funds, documents, and instructions from buyer and seller until all conditions of the transaction are satisfied, at which point the transaction closes.
Q8. Which of the following BEST describes a general warranty deed in Arizona?
Explanation
A general warranty deed provides the broadest title protection, warranting that the grantor will defend the title against all claims, even those arising before the grantor acquired the property.
Q9. A special warranty deed (also called a limited warranty deed) in Arizona warrants title:
Explanation
A special warranty deed warrants title only against defects that arose during the grantor's period of ownership. It does not protect against defects existing before the grantor acquired the property.
Q10. A quitclaim deed conveys:
Explanation
A quitclaim deed conveys only whatever interest the grantor currently has — no more, no less — with absolutely no warranties. It is often used to clear title defects or transfer between family members.
Q11. An owner's title insurance policy in Arizona protects:
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