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The Escrow Process
One of the main differences in purchasing property in Arizona involves Escrow. Typically in Canada when one buys Real Estate a lawyer is hired to protect the interest of the buyer. The seller normally hires their own lawyer to represent their interests. Both lawyers work on instructions they recieve from their clients and the sales agreement to prepare the paperwork necessary to complete the title and money transfer. In Arizona, the time between the mutual acceptence of an offer to purchase and the date set for closing is called Escrow.
The Escrow process can be defined as the vehicle in which the title transfer process is closed. In Arizona Real Estate transactions, this process typically uses a neutral third party, such as a Title Company. The Title Company will hold documents and transaction funds while carrying out the instructions of the buyer and seller that have been agreed to within a valid Purchase Contract.
The Seller
Addresses and helps clear any "clouds" on the preliminary Title Report.
Provides information for payoff amounts.
Submits for deposit in Escrow reciepts for performed repairs.
Reviews and signs closing Documents.
The Buyer
Reviews the prelminary Title Report.
Secures and completes financing with the Lender.
Provides Lender's insurance, if needed.
Signs Closing Documents.
Deposits Earnest (deposit money) and other closing cost funds.
Decides in what form Title will be taken.
Recieves Title insurance policy.
The Lender
Reviews the preliminary Title Report
Approves the Buyer for funding.
Discloses transaction closing costs.
Issues Loan Commitment and Lenders Escrow instructions.
Prepares Loan documents.
Reviews executed Loan documents.
Reviews Lenders Title Insurance policy.
The Escrow Officer
Reviews the preliminary Title Report.
Provides copies of Title Report to all parties involved.
Works with Seller to clear any "clouds" on Title such as liens and other encumbrances.
Prepares Sellers and Buyers Escrow instructions.
Deposits Buyers earnest and closing funds for Escrow.
Reviews and complies with Lender's Escrow instructions.
Expedites new loan funding with Lender.
Prepares any special Escrow instructions.
Prepares documents for Public Recordation.
Distributes monies and documents to appropriate parties.
Prepares Settlement Statement for Buyer and Seller
Specific information regarding Title issues and the Escrow process can be answered by a qualified Title Company Escrow Officer and or Legal Counsel.
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