Escrow & TitleIntermediateArizona Exam

In Arizona, an 'order of title' from a title company provides:

AAn unconditional guarantee that title is marketable and free of all defects as of the date the title search was completed
BA commitment to issue title insurance, subject to certain exceptions, upon recording and payment of the premiumCorrect
CA binding legal opinion from the title company's attorney confirming that title can be conveyed without court challenge
DWritten confirmation from the county recorder that all existing liens and encumbrances have been released prior to closing

Why A commitment to issue title insurance, subject to certain exceptions, upon recording and payment of the premium Is Correct

Answer B: A commitment to issue title insurance, subject to certain exceptions, upon recording and payment of the premium

A title commitment (title report/order) is a promise by the title company to issue a title insurance policy after closing, subject to the stated requirements being met and the noted exceptions. It is not itself a policy or guarantee of title.

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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