Escrow & TitleIntermediateArizona Exam

A 'title search' in Arizona involves:

AA physical inspection of the property's structures, systems, and site conditions conducted by a licensed home inspector or general contractor hired by the buyer

BA review of public records to trace ownership history and identify encumbrances affecting titleCorrect

CTesting the property's soil, groundwater, and air for the presence of hazardous substances, conducted by a licensed environmental professional for the benefit of the buyer

DVerifying the accuracy of the property description in the MLS listing by comparing the listed square footage and lot size to the county assessor's records

Why A review of public records to trace ownership history and identify encumbrances affecting title Is Correct

Answer B: A review of public records to trace ownership history and identify encumbrances affecting title

A title search involves examining recorded public documents (deeds, liens, judgments, easements, etc.) to establish a chain of title and identify any defects, encumbrances, or other issues affecting the property's title.

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

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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Key Terms to Know

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.