Escrow & Title
In Arizona, an escrow officer's primary duty is to:
ARepresent the buyer's interests throughout the closing process
BAct as a neutral third party who follows the written instructions of both parties, holds funds and documents, and disburses them only when all conditions of the escrow instructions are satisfied✓ Correct
CRepresent the title insurance company in all transactions
DAdvise both parties on how to structure the transaction for maximum tax benefit
Explanation
An Arizona escrow officer is a neutral stakeholder—they hold funds and documents in trust for both parties and can only disburse or act according to the mutually agreed escrow instructions. They represent neither buyer nor seller but serve as an impartial conduit for the transaction.
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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.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
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