Escrow & Title
In Arizona, an 'interpleader action' by an escrow company means:
AThe escrow company is suing one of the parties
BThe escrow company is depositing disputed funds with the court because of conflicting instructions✓ Correct
CThe escrow company is joining the transaction as a party
DThe escrow company is appealing a closing dispute
Explanation
An interpleader action allows the escrow holder to deposit disputed funds with the court when it cannot determine to whom they belong due to conflicting claims. The court then determines the proper owner without the escrow company taking sides.
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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.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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