AZ HB2738

Amends Arizona law governing title insurance policies to clarify requirements for agreements where third parties indemnify or hold harmless title insurers from risks arising from properly recorded instruments in county recorder offices.

Requires such indemnification agreements to be in writing and meet at least one of five conditions: the instrument was not of record when the agreement was executed, the instrument is specifically described, the instrument is shown as a policy exception, the instrument secures a monetary obligation of the person, or the agreement covers liens from work or labor performed on the property.

Specifies that improvement district assessments are not considered monetary obligations for purposes of these indemnification agreements.

Requires indemnification agreements to be separate documents and not included within the title insurance policy itself.

Clarifies that the amendments do not affect the enforceability of title warranties provided in deeds or mortgages and are intended as clarifying changes only to existing law.