Arizona Escrow And Title: How The Process Works

Buying a home in Tempe and wondering what “escrow” and “title” actually mean in Arizona? You are not alone. The process looks a little different here than in attorney-closing states, and clear steps make all the difference, especially if you are relocating. In this guide, you will learn how the Arizona escrow system works, what to expect at each milestone, how earnest money and contingencies protect you, and how to close securely whether you sign in person or remotely. Let’s dive in.

How escrow and title work in Arizona

In Arizona, most home sales are managed by title companies that also provide escrow services. The escrow officer is a neutral third party who holds funds and documents and follows the contract until all conditions are met. You, the seller, your agents, any lender, the title company, and the Maricopa County Recorder each play a part.

Attorneys are not required for typical residential closings here. The title and escrow team coordinates the title search, loan and signing logistics, funds, and recording. For contract norms and forms used locally, review the resources from the Arizona Association of REALTORS.

Who chooses the escrow company

The choice is negotiated in the purchase contract. Local custom often guides the selection, and your agent may recommend a reputable local title firm. The right choice can streamline HOA handling, remote signing, and recording in Maricopa County.

Typical Tempe timelines

• Financed purchases commonly close in about 30 to 45 days after contract acceptance.
• Cash purchases can close faster, often in 7 to 14 days when no title issues arise.
• Actual timing depends on your lender’s process, inspection and appraisal results, HOA document delivery, and title clearing.

For licensing and escrow oversight context, see the Arizona Department of Real Estate.

Step-by-step: From accepted offer to keys

1. Offer accepted, open escrow

   • Once both parties sign, the escrow/title company is named and opens a file with your contract, deadlines, and instructions. You will receive escrow instructions and a rough timeline.

2. Earnest money deposit

   • You deliver your earnest money per the contract. Escrow holds it in a trust account and confirms receipt to both parties.

3. Title search and commitment

   • The title examiner reviews public records for liens, easements, and prior deed issues, then issues a title commitment listing what must be cleared and what exceptions will remain.

4. Inspections and negotiations

   • You complete the agreed inspections. You and the seller negotiate repairs or credits. Escrow records any change orders in writing.

5. Loan processing and appraisal

   • If you are financing, your lender orders an appraisal and completes underwriting. Under federal rules, your lender must provide a Closing Disclosure at least three business days before consummation. Learn more about the three-day review from the Consumer Financial Protection Bureau.

6. Clear to close and final title work

   • The title company coordinates payoff of existing liens and clears any title defects. Escrow prepares final figures, including prorations for taxes and HOA dues.

7. Signing and closing

   • You sign closing documents in person, with a mobile notary, or remotely if permitted. Escrow collects your closing funds and the lender’s wire.

8. Funding and recording

   • The lender funds the loan, escrow disburses proceeds, and the deed and deed of trust are recorded with the Maricopa County Recorder. After recording, keys are released per contract.

Common documents include the purchase contract, escrow instructions, earnest money receipt, title commitment, deed, Closing Disclosure, final settlement statements, title policies, payoff statements, and HOA or tax statements.

Earnest money and contingencies

Your earnest money shows good faith and is held in escrow until closing or cancellation per the contract. While amounts vary by deal and market conditions, many Tempe and East Valley buyers offer a deposit that is a small percentage of the price, often around 1 to 3 percent. The amount is negotiated between buyer and seller, not set by escrow.

Whether your deposit is refundable depends on your contingencies and deadlines. Common protections include inspection, financing, appraisal, title, and HOA review periods. Escrow will only release funds when both parties instruct in writing or when directed by a court. To protect yourself:

• Confirm in writing where and when your deposit is due, and to which trust account.
• Get written confirmation when escrow receives the deposit.
• Track your contingency deadlines closely with your agent.

Title insurance and local issues to watch

There are two policies at closing. A lender’s title policy protects the lender and is usually required if you finance. An owner’s title policy is optional but strongly recommended to protect your ownership against covered title defects. Premiums are one-time fees paid at closing, and who pays each policy is set by local custom and your contract. For an overview of title insurance in Arizona, visit the Arizona Department of Insurance and Financial Institutions.

The title commitment outlines requirements to close and exceptions that will remain on title. Review the exceptions section carefully. In Maricopa County, common title issues include unreleased liens or judgments, HOA or contractor liens, boundary discrepancies, and estate-related questions. Easements and utility rights-of-way are common and typically remain as exceptions.

Title companies coordinate payoffs and releases to clear defects. Complex items, such as probate or quiet title actions, can take extra time. Arizona does not have a statewide real estate transfer tax, but county recording fees apply. For fee details and recording logistics, check the Maricopa County Recorder.

Remote signings and wire-fraud safety

Most Arizona title companies offer flexible signing options, including in-office signings, mobile notaries, hybrid eClosings, and in many cases remote online notarization if your lender allows it. Confirm your lender’s rules and your identification and notary requirements early to avoid delays. For national consumer resources on title and closing practices, see the American Land Title Association.

Wire fraud prevention is critical. Follow these safeguards on every transaction:

• Never rely on wiring instructions received by email alone. Call a known number from the title company’s official website to verify.
• Enable two-factor authentication on your email and avoid public Wi-Fi for financial communications.
• Confirm account details by phone with the escrow officer before initiating any wire.
• If anything changes, re-verify by phone using trusted contact information.

Local tips for Tempe and East Valley buyers

• HOA documents: Many condos, townhomes, and master-planned communities use HOAs. Expect an HOA document review period and specific fees to obtain documents. Who pays is negotiated in your contract.
• Demand near ASU: Areas close to Arizona State University and nearby employment centers can see strong demand. This can influence earnest money expectations, inspection timing, and seller concessions.
• Property tax prorations: Taxes are prorated based on your deed recording date and the county’s tax calendar. For current payment options and schedules, consult the Maricopa County Treasurer.
• Recording and e-recording: Maricopa County supports electronic recording for many documents. Your title company will provide recording confirmation and timing updates.
• Older-home considerations: In established Tempe neighborhoods, ask inspectors to flag any permit or utility items that could affect use or insurability. The title examiner will also note recorded issues that may matter.

A concierge path to a smooth close

You deserve a Tempe closing that feels organized and stress-aware, not rushed. Our team pairs neighborhood expertise with a concierge approach, from opening escrow and managing deadlines to coordinating remote signings and keeping your funds safe. We work with vetted local title partners and lenders so you get responsive communication and a clear path to keys, even if you are buying from out of state.

If you are planning a move to Tempe or the East Valley, let’s make your closing feel seamless. Connect with the Inspired Living Real Estate Collective to plan your next steps.

FAQs

Who chooses the escrow and title company in Arizona home purchases?

• The selection is negotiated in the contract, with local custom and agent recommendations often guiding the choice.

How long does an Arizona escrow take for a Tempe home?

• Financed deals often close in about 30 to 45 days, while simple cash deals may close in 7 to 14 days if no title issues arise.

When is earnest money refundable in an Arizona purchase?

• Refunds depend on your contract’s contingencies and deadlines, such as inspection, financing, appraisal, title, or HOA review periods.

Who pays for owner’s and lender’s title insurance in Tempe?

• Payment is set by local custom and negotiation in the contract; ask your agent and the title company what is typical for your area and price point.

Can out-of-state buyers close remotely on a Tempe property?

• Often yes. Many title companies support mobile or remote signings, but always confirm your lender’s rules and notary requirements early.

What causes most closing delays in Maricopa County?

• Common delays include appraisal or underwriting conditions, HOA document timing, and title defects that require extra clearing.