Escrow & TitleIntermediateArizona Exam

In Arizona, escrow instructions are:

AVerbal directions given to the escrow officer at closing
BWritten directions to the escrow company governing how the transaction is to be completedCorrect
CThe preliminary title report issued by the title company
DThe lender's appraisal instructions to the borrower

Why Written directions to the escrow company governing how the transaction is to be completed Is Correct

Answer B: Written directions to the escrow company governing how the transaction is to be completed

Escrow instructions are binding written directions from both buyer and seller (and often the lender) that instruct the escrow company on the conditions that must be met and the steps to be taken to close the transaction.

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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