An Arizona escrow agent who disbursed funds based on a fraudulently forged signature on an escrow instruction may be liable to:
Why The defrauded party for breach of the escrow agent's duty to act only on genuine instructions Is Correct
Answer B: The defrauded party for breach of the escrow agent's duty to act only on genuine instructions
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
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
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
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →