Escrow & TitleIntermediateArizona Exam

A grant deed in Arizona conveys the property and implies a warranty that:

AThe grantor has not conveyed the property to anyone else and there are no undisclosed encumbrances from the grantorCorrect
BAll existing liens, encumbrances, and title defects have been satisfied and the property is delivered to the grantee free and clear of all adverse claims
CThe property is free of all physical defects, including structural issues, environmental contamination, and code violations, to the best of the grantor's knowledge
DThe property's market value will remain at or above the purchase price for a period of five years following the date of the conveyance deed

Why The grantor has not conveyed the property to anyone else and there are no undisclosed encumbrances from the grantor Is Correct

Answer A: The grantor has not conveyed the property to anyone else and there are no undisclosed encumbrances from the grantor

A grant deed (used in some states but less common than warranty deeds in Arizona) carries implied covenants that the grantor has not previously conveyed the property and there are no undisclosed encumbrances placed by the grantor.

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.

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