What is the Close of Escrow?
Close of escrow in Arizona is the way that title is transferred in a real estate transaction in Arizona. When a buyer and seller enter into a purchase agreement escrow is opened. The process from opening of escrow to closing of escrow typically takes 30-45 days, but in some cases might be less. The close of escrow is marked by the transfer of funds from the buyer to the seller, and the transfer of ownership (title) from the seller to the buyer.
How is Title Transferred?
Unlike other states that use bankers and attorneys to process the transfer of ownership Arizona uses title agents to prepare all documents. The title agent will coordinate with the lender, the buyer, and the seller to prepare a settlement statement. Once the settlement statement has been reviewed by all parties the buyer and seller will sign. The final step is for the title agency to record the deed and title is transfered to the buyer.
The Settlement Statement
The settlement statement is an accounting of all of the costs in the transaction. The title agency prepares this document which accounts for every single cent involved in the purchase of the home. The buyer, seller and lender all receive the settlement statement. This is important because the settlement statement is required by the lender to fund the loan.
Closing Escrow
Once the title agent has given the settlement to the lender, the lender funds the loan, and title is recorded escrow is closed. The seller and buyer both receive any funds that were indicated on the settlement statement and the buyer moves into their new home.
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