Escrow & TitleIntermediateArizona Exam

In Arizona, recording a deed in the county recorder's office serves to:

ACreate the legal transfer of title to the buyer
BProvide constructive notice to the world of the buyer's ownership interestCorrect
CComplete the escrow process automatically
DGuarantee that no liens will attach to the property

Why Provide constructive notice to the world of the buyer's ownership interest Is Correct

Answer B: Provide constructive notice to the world of the buyer's ownership interest

Recording a deed provides constructive notice of ownership. Without recording, subsequent bona fide purchasers for value who record first may have superior rights.

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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