Escrow & TitleIntermediateArizona Exam

An owner's title insurance policy in Arizona is typically paid for by:

AThe buyer in all residential transactions, under a statewide statutory requirement
BThe seller in all residential transactions, as the uniform statewide practice
CThe party designated in the purchase contract, which varies by county customCorrect
DThe lender, with the cost bundled into the Loan Estimate under TRID

Why The party designated in the purchase contract, which varies by county custom Is Correct

Answer C: The party designated in the purchase contract, which varies by county custom

In Arizona, the purchase contract specifies who pays for title insurance. By custom, it varies by county—in some counties the seller pays for the owner's policy; in others the buyer pays.

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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