An escrow company is a neutral third party that holds the buyers’ earnest money and oversees the contract terms. It is important to know that if there is a conflict between any of the preprinted terms and added written language, the written word will prevail. The buyer will offer earnest money to show the seller that the buyer has good faith to carry out the contract terms. It is required in Arizona that a form of earnest money be apart of the contract. The agreed amount is negotiable and will need to be deposited with the escrow company listed in the contract. Typically this needs to be done the same day or the next business day upon contract acceptance.
The standard Arizona Residential Purchase Contract does tend to be very buyer-friendly. Whereas the new construction, builder contracts are very builder friendly. Friendly in the sense who the contract favors. You will need to understand the terms of the contract before you sign any contractually binding agreements.
It is common to use the same escrow company to obtain title of the premises. A title company will follow also only follow the written instructions of the contract. The buyer will need to decide how they will take title before it closes. Find out more about taking title.
Property taxes are prorated as well as all assessments and fees that are not a lien. This includes homeowner’s association (HOA) fees and rents. If there is a homeowner’s association, the escrow company will notify them of the pending sale. In return, the HOA will often provide a demand letter of any fees associated with the transfer of ownership and any documents related to the premises.
ESCROW/TITLE COMPANIES
The escrow/title company can be a negotiable part of the contract. However, one will need to be written into the contract when submitting an offer. Here is a list of escrow/title companies that I have found to provide excellent service:
When comparing companies, it is also essential to have a good escrow officer to keep the transaction on track and communicate well with each party. If you have any questions, please contact me at any time. I am happy to help review your options. My job is to be your real estate resource and look out for your BEST interest, but the choice is always yours!
Audrey Tolley, Associate Broker
