SELLING A HOME IN ARIZONA

THE ESCROW PROCESS

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.

The State of Arizona licenses and regulates all  title and escrow companies. The Department of  Insurance and the Department of Financial  Institutions can inspect a company’s records at  any time, providing further oversight of the  company’s management and qualification to  act as an impartial third party to the  transaction.      

In Arizona, escrow services are generally  provided by a title insurance company instead  of an attorney. The stability, reliability and  performance of your title and escrow company  are vital to protect the interests of all parties to  the transaction.

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  escrow. The earnest money deposit and the  contract are placed in escrow. As a neutral  party to the transaction, Security Title can  respond only to those written instructions  agreed to mutually by all “interested” parties  (Seller and Buyer); Security Title cannot  otherwise alter the contract or create  instructions, and that protects all parties to the  transaction.  

   

HOW TO HOLD TITLE
You should inform your escrow officer and  lender as soon as possible of how you wish to  hold title to your home and exactly how your  name(s) will appear on all documents. This  allows your lender and Security Title to prepare  all documents correctly. Changes later, such as  adding or deleting an initial in your name, can  delay your closing. You may wish to consult an  attorney, accountant or other professional  before deciding how to hold title.   

WHAT HAPPENS AT SECURITY TITLE  
During the escrow period, our title department begins researching  and examining all historical records pertaining to the subject property.  Barring any unusual circumstances, a commitment for title insurance  is issued, indicating a clear title or listing any items which must be  cleared prior to closing. The commitment is sent to you for review.  Your escrow officer follows the instructions on your contract,  coordinates deadlines, and gathers all necessary paperwork. For  example, written requests for payoff information (called “demands”)  are sent to the Seller’s mortgage company and any other lien holders.    ​    ​    ​        ​  

 


 

© 2015-2020 by Melanie White | REALTOR® at My Home Group.         

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