Escrow & TitleIntermediateArizona Exam

Recordation of a deed in Arizona provides:

AActual notice only to the immediate parties in the transaction

BConstructive notice to the world that a transfer has occurredCorrect

CProof that the title is free and clear of all encumbrances

DA guarantee of marketable title

Why Constructive notice to the world that a transfer has occurred Is Correct

Answer B: Constructive notice to the world that a transfer has occurred

Recording a deed at the county recorder's office provides constructive notice — legal notice to the world — of the ownership transfer. Anyone who searches public records is presumed to have notice of recorded instruments.

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.

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Key Terms to Know

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.

Abstract of Title

A condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.

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.

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