Escrow & TitleIntermediateArizona Exam

In Arizona, 'concurrent closing' occurs when:

AA closing procedure in which the buyer and seller review and execute all documents simultaneously via video conference, with the title company supervising electronically

BA closing in which the escrow officer disburses all proceeds to buyer and seller simultaneously so that neither party has access to funds before the otherCorrect

CMultiple simultaneous transactions are sequentially dependent—such as a 1031 exchange or a buyer who needs to close their sale before closing the purchase

DA closing method used exclusively for new-construction tract homes, in which the builder closes all units on the same day to simplify construction loan payoff

Why A closing in which the escrow officer disburses all proceeds to buyer and seller simultaneously so that neither party has access to funds before the other Is Correct

Answer B: A closing in which the escrow officer disburses all proceeds to buyer and seller simultaneously so that neither party has access to funds before the other

Concurrent closings involve sequentially dependent transactions—such as a buyer selling their current home and simultaneously buying a new one, or a 1031 exchange where the relinquished and replacement property closings must be coordinated.

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

1031 Exchange

A tax-deferred exchange allowing investors to sell one investment property and reinvest proceeds in a like-kind property while deferring capital gains taxes.

Escrow

A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.

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Key Terms to Know

1031 Exchange

A tax-deferred exchange allowing investors to sell one investment property and reinvest proceeds in a like-kind property while deferring capital gains taxes.

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Closing Costs

Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.

Proration

The division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.