Escrow & TitleIntermediateArizona Exam

In Arizona, the Buyer Advisory provided by AAR-member brokers to buyers PRIMARILY serves to:

AReplace the Seller's Property Disclosure Statement as the primary disclosure document and relieve the seller of the obligation to complete an SPDS for the transaction

BInform buyers about the due diligence investigations they should conduct and the resources available to themCorrect

CSubstitute for an independent property inspection, since a buyer who receives and signs the Buyer's Advisory has waived the right to conduct further due diligence

DProvide the buyer with a formal appraised value of the property prepared by a licensed Arizona appraiser as a basis for evaluating the fairness of the offered purchase price

Why Inform buyers about the due diligence investigations they should conduct and the resources available to them Is Correct

Answer B: Inform buyers about the due diligence investigations they should conduct and the resources available to them

The AAR Buyer Advisory informs buyers about the various due-diligence investigations they should consider (title, surveys, inspections, zoning, environmental, etc.) and lists resources for obtaining more information.

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

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

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Key Terms to Know

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Loan-to-Value Ratio (LTV)

The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.

Deed

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

Easement

A non-possessory right to use another person's land for a specific purpose.

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