Escrow & TitleIntermediateArizona Exam

A preliminary title report (or title commitment) in Arizona is issued by a title company and PRIMARILY serves to:

AConfirm that all recorded liens have been satisfied and that title is clear before the escrow company disburses funds
BDisclose the current state of title, including liens and encumbrances, and commit to insure title subject to stated exceptionsCorrect
CServe as the buyer's title insurance policy once the premium is paid and the deed is recorded
DCertify that the property is free of all encumbrances and that the earnest money has been properly deposited

Why Disclose the current state of title, including liens and encumbrances, and commit to insure title subject to stated exceptions Is Correct

Answer B: Disclose the current state of title, including liens and encumbrances, and commit to insure title subject to stated exceptions

A title commitment (preliminary report) discloses the current state of title — existing liens, easements, and encumbrances — and is the title company's commitment to issue a title insurance policy, subject to the listed exceptions and requirements.

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

People Also Study

Practice More Arizona Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →