Escrow & Title
In Arizona, which party typically selects the title company when a property is purchased?
AThe lender always selects the title company
BThe party customarily designated in the purchase contract or by local custom in each county✓ Correct
CThe seller always selects the title company
DThe Arizona Department of Insurance selects the title company
Explanation
RESPA allows the parties to negotiate who selects the title company. In Arizona, selection varies by county custom and what the purchase contract specifies.
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Key Terms to Know
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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