The Arizona Home Buying Process
In Arizona, real Estate agents are actually licensed to practice limited real estate law in that they are allowed to write contracts for the sale and purchase of real estate. One of the primary differences Canadians find in the Arizona home buying process is the use of Title companies in Arizona. The title company is a neutral third party to the transaction. The title company will follow the instructions written in the contract and agreed to by both the Buyer and Seller. Title companies cannot alter the contract or create instructions. Title companies are licensed and regulated by the State of Arizona. Title Companies in Arizona handle the transaction, provide all escrow services and Title insurance for the new owner and the lender.
Once a contract is reached between Buyer and Seller, escrow will be opened at a title company.
Escrow is a service provided by the Title company. The easiest visualization I can give you to help you understand the function of escrow is to think of escrow as a big pot which is presided over by the escrow officer. All of the paperwork, the contract, the escrow instructions, the title documents, the loan documents, the money and the keys all go into the pot called escrow. The escrow officer presides over all of the components of the transfer of ownership of the property.
Once you have a contract, it is delivered to the Title company and Escrow is opened, The Title Company/Escrow officer:
Deposits your “good faith” funds in a separate escrow account.
Conducts a title search to determine ownership and status of the property.
Issues a title commitment and begin the process to delete or record items to provide clear title to the property.
Meet all deadlines as specified in the contract.
Request payoff information for the Seller’s loans, other liens, homeowners association fees, etc.
Prorate fees, such as property taxes, per the contract, and prepare a settlement statement.
Set separate appointments for the Seller and Buyer to sign documents (you can sign your documents in Canada if you prefer).
Deposit final funds from the Buyer.
Review documents ensuring all conditions and legal requirements are fulfilled.
When all funds are deposited, record documents at the County Recorder to transfer the subject property to you.
After recordation is confirmed, close escrow and disburse funds, including Seller’s proceeds, loan payoffs, Realtor commissions, related fees for recording etc.
Prepare and send final documents.
Lawyers are not usually involved in residential real estate purchases in Arizona.
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