Escrow & TitleIntermediateArizona Exam

A preliminary title report (title commitment) in Arizona is issued by the title company to:

AGuarantee that the property's title is completely free and clear of all encumbrances and defects
BDisclose the current condition of title and exceptions before issuing a final policyCorrect
CReplace the need for a title search
DServe as the final title insurance policy for the transaction

Why Disclose the current condition of title and exceptions before issuing a final policy Is Correct

Answer B: Disclose the current condition of title and exceptions before issuing a final policy

A preliminary title report (or title commitment) discloses the results of the title search, identifies exceptions to coverage, and commits the title company to issue a policy upon meeting specified 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

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