Escrow & TitleIntermediateArizona Exam

In Arizona, which of the following deeds would be used to convey title from a trustee to a beneficiary when a trust is dissolved?

AWarranty deed

BTrustee's deedCorrect

CQuitclaim deed

DSpecial warranty deed

Why Trustee's deed Is Correct

Answer B: Trustee's deed

A trustee's deed is used when a trustee conveys property on behalf of a trust—whether distributing to a beneficiary, completing a sale, or in a foreclosure trustee's sale. The trustee's deed may include warranty covenants or not, depending on the situation.

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).

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).

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Easement

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

Encumbrance

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