CALL: 602-295-6807
  Troy Erickson Realtor
  • Home
    • Housing Market Reports >
      • Ahwatukee Foothills Real Estate Market Reports
      • Chandler Real Estate Market Reports
      • Gilbert Real Estate Market Reports
      • Mesa Real Estate Market Reports
      • Phoenix Real Estate Market Reports
      • Scottsdale Real Estate Market Reports
      • Tempe Real Estate Market Reports
      • Arizona MLS Market Reports - Home Sales and Stats
    • Chandler Services and Resources
    • Chandler Top Employers
    • Chandler Interactive Map
    • Ahwatukee Home Page
  • Search For Homes
    • Search All Arizona Homes For Sale (MLS)
    • Homes For Sale By East Valley City >
      • Chandler Homes For Sale
      • Ahwatukee Homes For Sale
      • Gilbert Homes For Sale
      • Mesa Homes For Sale
      • Phoenix Homes For Sale
      • Scottsdale Homes For Sale
      • Tempe Homes For Sale
    • Chandler Homes For Sale by Price Range >
      • Chandler Homes For Sale Under $300,000
      • Chandler Homes For Sale $300,000-$400,000
      • Chandler Homes For Sale $400,000-$500,000
      • Chandler Homes For Sale $500,000-$600,000
      • Chandler Homes For Sale $600,000-$700,000
      • Chandler Homes For Sale $700,000-$800,000
      • Chandler Homes For Sale $800,000-$900,000
      • Chandler Homes For Sale $900,000-$1,000,000
      • Chandler Luxury Homes For Sale Over $1,000,000
    • Chandler Homes For Sale by Top Neighborhood >
      • Abralee Meadow
      • Arden Park
      • Circle G at Riggs Homestead Ranch
      • Clemente Ranch
      • Cooper Commons
      • Fox Crossing
      • Fulton Ranch
      • Ocotillo
      • Rancho Del Ray
      • Sun Groves
      • Wild Tree
    • Chandler AZ Homes for Sale in Active Adult Communities >
      • Sun Lakes Homes For Sale >
        • More About Sun Lakes Active Adult Community
      • Springfield Homes For Sale
      • Sunbird Homes For Sale
    • East Valley Homes For Sale by High School and School District >
      • Homes For Sale in the Chandler School District >
        • Basha High School
        • Casteel High School
        • Chandler High School
        • Hamilton High School
        • Perry High School
      • Homes For Sale in the Gilbert School District >
        • Campo Verde High School
        • Desert Ridge High School
        • Gilbert High School
        • Highland High School
        • Mesquite High School
      • Homes For Sale In The Kyrene School District
      • Homes For Sale in the Mesa School District >
        • Dobson High School
        • Mesa High School
        • Mountain View High School
        • Red Mountain High School
        • Skyline High School
        • Westwood High School
      • Homes For Sale in the Phoenix School District >
        • Alhambra High School
        • Betty Fairfax High School
        • Camelback High School
        • Carl Hayden High School
        • Central High School
        • Cesar Chavez High School
        • Maryvale High School
        • North High School
        • South Mountain High School
        • Trevor Browne High School
      • Homes For Sale in the Scottsdale School District >
        • Arcadia High School
        • Chaparral High School
        • Coronado High School
        • Desert Mountain High School
        • Saguaro High School
      • Homes For Sale in the Tempe School District >
        • Corona del Sol High School
        • Desert Vista High School
        • Marcos de Niza High School
        • McClintock High School
        • Mountain Pointe High School
        • Tempe High School
    • Chandler Homes For Sale By Bedrooms >
      • Chandler 2 Bedroom Homes For Sale
      • Chandler 3 Bedroom Homes For Sale
      • Chandler 4 Bedroom Homes For Sale
      • Chandler 5+ Bedroom Homes For Sale
    • Chandler Homes For Sale Zip Code >
      • Chandler Homes in Zip Code 85224
      • Chandler Homes in Zip Code 85225
      • Chandler Homes in Zip Code 85226
      • Chandler Homes in Zip Code 85248
      • Chandler Homes in Zip Code 85249
      • Chandler Homes in Zip Code 85286
    • Chandler Specialty Properties >
      • Chandler Homes For Sale With A Pool
      • Chandler AZ Horse Properties
      • Chandler AZ Homes for Sale in Golf Course Communities
      • Chandler Lakeside Homes >
        • Chandler Waterfront Homes
      • Chandler Basement Homes
      • Chandler Gated Community Properties
      • Chandler Luxury Homes $1,000,000+
      • Single Story Chandler Homes For Sale
      • Chandler Homes For Sale on Half Acre or More
      • Preforeclosures, Short Sales and Bank Owned Properties
      • Chandler Condos and Townhomes For Sale
    • Our Featured Homes For Sale
  • Buyers
    • Home Buyer Cash Back Program
    • Home Exchange Program
    • The Home Buying Process >
      • Buying My First Home
      • Home Buying 101 Videos
      • 10 Mistakes to Avoid
      • 15 Things Every Home Buyer Should Know
      • 5 First Time Home Buyer Mistakes To Avoid
      • 9 Great Reasons to Get Pre-Approved For a Home Loan
    • FREE Home Buyers Guide
    • Home Financing and Mortgage Rates >
      • Calculating My Monthly Payment - Calculators
      • The Loan Process
      • Closing Disclosure Forms
      • Closing Costs >
        • What Are Mortgage Points
        • Lower Payments With Discount Points
      • What is a FICO Score?
      • 6 Steps to Ensure a Smooth Home Purchase
      • Things Not To Do Before Closing
    • Home Buyers Checklist
    • Moving to Chandler? >
      • FREE Chandler Relocation Guide
      • Chandler City Info
      • Chandler Schools in the Chandler School District >
        • Chandler School District and Boundary Maps
        • Kyrene School District and Boundary Maps
        • Tempe School District and Boundary Maps
    • Title and Escrow >
      • Ways to Hold Title in Arizona
      • The Escrow Process
      • Explanation of Title Commitment
      • Closing My Escrow in Arizona
      • After My Home In Arizona Closes
    • Home Inspection >
      • Top 10 Defects Found During a Home Inspection
    • Benefits of Home Ownership >
      • Tax Benefits of Owning a Home
    • Additional buyer Info and Forms
    • Q & A
  • Sellers
    • Home Seller Guaranteed Savings Program
    • Home Exchange Program
    • The Home Selling Process >
      • 18 Steps to Selling My Home
      • 6 Tips to Selling Your Home
      • Enhancing Curb Appeal
      • 15 Home Listing Tips
      • The Worst Home Selling Mistake a Homeowner Can Make
      • 8 Most Frequently Asked Seller Questions
    • We Sell Homes
    • FREE Home Sellers Guide - Winter
    • How Much is My Home Worth?
    • What Are Homes Selling For In My Neighborhood?
    • Closing Costs
    • Short Sale Info
    • Absorption Rate
    • Home Warranty
    • Selling My Home "For Sale By Owner"
    • Additional Seller Info and Listing Forms
  • Contact Us
    • Client Testimonials
    • About Us >
      • Why work with Troy and Mia?
    • Awards
    • Role of the Realtor >
      • It May Pay to Work With A Realtor
  • East Valley Real Estate Blog
  • Chandler Area Schools
    • Chandler School District and Boundary Maps
    • Kyrene School District and Boundary Map
    • Tempe School District and Boundary Map
  • Helpful Real Estate Videos
  • Chandler City Map
  • Glossary of Real Estate Terms
  • Real Estate News
  • Things To Do In Arizona
  • Home Swap Program - KNOCK

The Escrow Process in Arizona

WHAT IS AN ESCROW?


​An escrow is a process wherein the Buyer and Seller deposit written instructions, documents, and funds with a neutral third party until certain conditions are fulfilled. In a real estate transaction, the Buyer does not pay the Seller directly for the property.

​The Buyer gives the funds to an escrow company who, acting as an intermediary, verifies that title to the property is clear and all written instructions in the contract have been met. Then the company transfers the ownership of the property to the Buyer through recordation and pays the Seller. This process protects all parties involved.

See the chart on the right representing the Escrow Process from start to finish (click to enlarge).


Picture
In Arizona, escrow services are generally provided by a title insurance company instead of an attorney.

HOW IS AN ESCROW OPENED?
Once you have completed the contract (or purchase agreement) and the Seller has accepted the offer, your Realtor will open the escrow. The earnest money deposit and the contract are placed in escrow.

See the chart on the right representing the life cycle of an escrow from start to finish.
HOW TO HOLD TITLE?
You should inform your escrow officer and lender as soon as possible as to how you wish to hold title to your home, as well as letting them know exactly how you want your name(s) to appear on all documents. This allows your lender and title company to prepare all documents correctly (Changes later, such as adding or deleting an initial in your name, can delay your closing). Click here for the different ways to hold title in Arizona. You may wish to consult an attorney, accountant, or other qualified professional before deciding how to hold title.
Picture

WHAT HAPPENS DURING THE ESCROW PERIOD?
Picture
Your escrow officer follows instructions on your purchase contract, coordinates deadlines, and gathers all necessary paperwork.
  • A copy of the existing deed is ordered by the escrow officer to obtain the legal description of the property and the names of the owners on record.
 
  • The escrow officer or an assistant then orders a commitment for title insurance from the company's title department in order to determine what will be required to close the 

​transaction. The title department begins researching and examining all historical records pertaining to the subject property. Barring any unusual circumstances, a commitment for title insurance will be issued, indicating a clear title, or listing any items which must be cleared prior to closing. The buyer or buyer's lender will be informed of any items that will remain of record against the property after closing.
​
Picture
Picture
​​
  • Written requests for payoff information (called "demands") are sent to the seller's mortgage company and any other lien holders to determine the amount needed for the seller to payoff the loan on the property being sold. Statements from the homeowners association (HOA) are also ordered to determine the amount needed for any payoff, and/or transfer at the close of escrow.
 ​
  • Copies of the Title Commitment, covenants, conditions, and restrictions (CC&R's) and termite inspection reports are forwarded to buyer, seller, and lender for their approval as received.
  • Upon receipt of the buyer's loan documents from the buyer's lender, the escrow officer prepares the settlement statement (or HUD-1) based on the information provided by the buyer's lender, statements from the homeowners association, payoff information from the seller's lender (if any), and the purchase contract. The buyer and seller are each contacted and have separate signing appointments scheduled for each other. The buyer will deposit closing funds at their scheduled signing time unless other arrangements have been previously made. ​
  • After signing, the loan documents are returned to the buyer's lender for approval and funding. Upon receipt of the loan proceeds from the lender, the escrow officer will release the documents in the transaction for recording with the County Recorder on the agreed upon recording date. After recording, the funds are disbursed and copies of all documents are provided to the Realtor®, buyers, and sellers, and the title insurance policies are issued to the buyer and the buyer's new lender.
Picture
In Arizona, real estate agents are authorized to write purchase contracts and escrow/title companies are authorized to complete standard documents to close a real estate transaction. As a result, attorneys are not commonly engaged in real estate closings of residential property. The real estate professionals generally involved include the real estate agents, the escrow officer, and the buyer's loan officer.

Picture
Powered by Create your own unique website with customizable templates.
Powered by Create your own unique website with customizable templates.