Escrow & TitleIntermediateArizona Exam

In Arizona, the 'Affidavit of Value' (or Legal Value Affidavit) is significant because it:

AIs the instrument by which legal title is conveyed from seller to buyer and must be recorded with the county recorder before it becomes enforceable against third parties

BDiscloses the actual purchase price to the County Assessor for use in property valuation and assessmentCorrect

CCertifies that the title company has examined the title chain and found it clear of all defects, encumbrances, and adverse claims as of the date of the closing

DEstablishes the property tax rate applicable to the new owner's assessed value, effective for the first full tax year following the recorded date of the sale

Why Discloses the actual purchase price to the County Assessor for use in property valuation and assessment Is Correct

Answer B: Discloses the actual purchase price to the County Assessor for use in property valuation and assessment

The Affidavit of Value (or Real Estate Affidavit) records the sale price and must be filed when recording a deed. County Assessors use this information to verify and update assessed values to reflect market transactions.

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

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

People Also Study

Key Terms to Know

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

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.

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

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.

Math Concepts

Property Tax Assessment

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Property Ownership Guide

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