What is ‘Escrow’ …
…when closing on your home purchase in Arizona?
In Arizona we do not do what are commonly called in the East “Formal or Table Closings”. The difference means a valuable time and cost savings to all parties in the transaction and an ease of the closing process. In Arizona a title/escrow company rather than an attorney process the escrow.
After the Buyer’s Realtor has found that perfect home for you and has successfully negotiated an Arizona Association of Realtors Residential Purchase Contract with the Sellers, the parties will be ready to enter into escrow. As an escrow company, our duty is to act as a neutral third party, holding all documents and monies as required by the purchase contract and AZ law, until all of the terms and conditions of the contract have been met. The Escrow Officer then will make the transfer from the Seller to the Buyer by recording the necessary documents with the county recorder. If you were involved in a formal closing in an Eastern state both the Buyers, Sellers, Realtors, Lender, Attorney and staff would have to meet in the attorney’s office for the formal signing of all conveyance documents, loan documents, and depositing of funds.
In Arizona, “closing” is considered to be the recordation of all conveyance and loan documents, as specified in the contract. In the process of acquiring a loan your lender will refer to the signing of your loan documents as “consummation” of the transaction which will usually happen 24 to 48 hours prior to the actual closing. The Buyer will consummate (sign) the loan documents with the escrow officer 3 days after the lender has completed the loan and issued a Closing Disclosure to the Buyer. The Seller does not have to attend the signing, all necessary Seller documents will be signed early and held in escrow. Closing will happen upon the receipt, by the escrow company, of closing funds from the Buyer, loan proceeds from lender and all signed documents pertinent to the transaction. After the loan is recorded the Realtor will transfer the keys to the new owner.
That’s an escrow closing in Arizona
Brenda Silveus, Marketing