Escrow & Title
An Arizona escrow agent who disbursed funds based on a fraudulently forged signature on an escrow instruction may be liable to:
ANo one, since the fraud was not the escrow agent's fault
BThe defrauded party for breach of the escrow agent's duty to act only on genuine instructions✓ Correct
COnly the party who committed the fraud
DThe ADRE only
Explanation
Escrow agents have a duty to verify the authenticity of instructions and documents. Disbursing on forged instructions may expose the escrow agent to liability to the defrauded party, particularly if the forgery was detectable through reasonable diligence.
People Also Study
Related Arizona Questions
- The duty of 'reasonable care and diligence' in agency requires an Arizona agent to:Agency
- In Arizona, escrow instructions are:Escrow & Title
- An Arizona escrow requires the seller to prorate property taxes. The annual tax is $3,600. The closing is on April 30. How much does the seller owe for taxes (January 1 through April 30 = 120 days)? Use a 360-day year.Real Estate Math
- Under the Arizona AAR contract, if the seller fails to close escrow on the scheduled closing date through no fault of the buyer, the buyer may:Contracts
- An Arizona escrow agent who receives conflicting instructions from buyer and seller should:Escrow & Title
- Under Arizona agency law, the duty of 'reasonable care' includes the obligation of an agent to:Agency
- In Arizona, an escrow officer's primary duty is to:Escrow & Title
- In Arizona real estate transactions, escrow is typically handled by:Escrow & Title
Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
State-Specific Concepts
DRE Regulation
Study This Topic
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →