Escrow
To finalize the sale of the home a neutral, third party (the escrow agent) is engaged to assure the transaction will close properly and on time. The escrow agent insures that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized, including receiving funds and documents, completing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you clear title to your property before the purchase price is fully paid. In Arizona, Title and Escrow companies are licensed by the Department of Financial Institutions, just like mortgage brokers and mortgage bankers.

Upon completion of all instructions of the escrow, closing can take place. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then transferred to the seller and appropriate title insurance is issued as outlined in the escrow instructions.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. In Arizona, certified funds (cashier's check, etc.) are required. The escrow agent will provide you with the final total of funds you need to bring to escrow closing.

Mortgage Escrow Account

A Mortgage Escrow Account is established and managed by the mortgage companny to pay on-going expenses while there is a loan on the house. These expenses include property taxes, home insurance, mortgage insurance, and other escrow items. Generally, the Mortgage Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.