Escrow & TitleAdvancedArizona Exam

In Arizona, an escrow company acts as a(n):

AExclusive agent for the buyer's interests, responsible for verifying that the seller has completed all contractual obligations before releasing funds from escrow
BAgent for the seller's interests, responsible for ensuring that the buyer's funds are received and all closing conditions are satisfied before the deed is delivered
CDual agent representing both buyer and seller with equal loyalty and full fiduciary duties to both parties throughout the entire closing process
DNeutral stakeholder/fiduciary that follows the joint escrow instructions of both partiesCorrect

Why Neutral stakeholder/fiduciary that follows the joint escrow instructions of both parties Is Correct

Answer D: Neutral stakeholder/fiduciary that follows the joint escrow instructions of both parties

An Arizona escrow company is a neutral stakeholder that holds funds and documents and follows the joint written instructions of both the buyer and seller. It does not advocate for either party.

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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