Escrow & TitleIntermediateArizona Exam

A 'cloud on title' in Arizona refers to:

AA property located in a high-elevation zone subject to snow
BAny document, claim, or lien that makes the title questionable or uncertainCorrect
CA deed restriction imposed by the original developer
DA property survey that has not been updated in more than 10 years

Why Any document, claim, or lien that makes the title questionable or uncertain Is Correct

Answer B: Any document, claim, or lien that makes the title questionable or uncertain

A cloud on title is any outstanding claim, lien, or encumbrance that makes the title uncertain or unmarketable. Common examples include unresolved liens, improperly discharged mortgages, or conflicting deed descriptions.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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