6-841.02 - Arizona Statutes

6-841.02. Liability of title insurer; closing protection letter; definition A. A real property escrow agent that is a title insurance agent shall disclose to the buyer and seller of a residential dwelling that the title insurer may offer a closing protection letter that provides protection for the loss of escrow monies due to fraud or dishonesty of the escrow agent. This disclosure requirement applies only to transactions involving a buyer and seller of a residential dwelling and shall be made when the buyer or seller employs the escrow agent. B. If an escrow agent does not make the disclosure prescribed by this section, the title insurer shall reimburse the buyer or seller, as applicable, for any escrow monies that are lost and that are not recovered from the Arizona escrow recovery fund established by section 6-847.01. The title insurer's obligation pursuant to this subsection shall be to the extent of that title insurer's standard closing protection letter for a buyer or seller, as applicable. C. For purposes of this section, "residential dwelling" means an owner occupied structure or an investment property that is designed for residential use by four or fewer families.