Escrow & TitleIntermediateArizona Exam

In Arizona, the seller typically pays for which of the following title insurance policies?

AThe lender's title insurance policy (ALTA loan policy)
BThe owner's title insurance policy (ALTA owner's policy)Correct
CBoth the lender's and owner's policies
DNeither; the buyer pays for all title insurance in Arizona

Why The owner's title insurance policy (ALTA owner's policy) Is Correct

Answer B: The owner's title insurance policy (ALTA owner's policy)

In Arizona, by custom the seller typically pays for the owner's title insurance policy, while the buyer pays for the lender's title insurance policy. However, this is negotiable and varies by county and 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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