Escrow & TitleIntermediateArizona Exam

Arizona uses the 'race-notice' recording statute, which means that a subsequent purchaser wins in a title dispute if they:

ARecord first only, regardless of notice of any competing interest
BHave actual or constructive notice of the prior conveyance only
CBoth record first AND had no notice of the prior conveyance at the time of purchaseCorrect
DPurchase the property through a licensed real estate agent

Why Both record first AND had no notice of the prior conveyance at the time of purchase Is Correct

Answer C: Both record first AND had no notice of the prior conveyance at the time of purchase

Under a race-notice recording statute, a subsequent bona fide purchaser wins over a prior unrecorded claim if (1) they had no notice of the prior claim at the time of purchase, AND (2) they recorded first.

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.

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