The Basic Steps to Closing an Escrow in Arizona

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This article is brought to you by the Sedona Branch of  Stewart Title  Arizona. Our Sedona Office has a team of professionals ready to serve your title and escrow needs. We are the most highly automated title company in the industry. We are committed to providing you with more than just excellent service we want you to have a magnificent; experience when you choose our Sedona Office. Whether communicating via email or providing web based on-line services or simply providing the service you need when you need it, our associates will go the extra mile for you.

Basic Steps to Closing

1. Starting the process.

A sales contract is signed by the buyer and seller and delivered to the closing agent, usually with a deposit check. The escrow is accepted by the escrow agent, usually by written notation on the contract. The escrow agent starts the closing process by opening a title order. The file begins to be processed. Tax information, loan payoffs, survey (if necessary), homeowner/maintenance fees, inspections/reports, and hazard and other insurances as well as legal papers are ordered. A title search is ordered.

2. Title search and examination.

This is a search made of the public records. Records searched include deeds, mortgages, paving assessments, liens, wills, divorce settlements and other documents affecting title to the property. Title examination is the examination of the documents found during the title search that affect the title to the property. This is when verification of the legal owner is made and the debts owed against the property are determined. Upon completion of the search and examination, a title commitment/preliminary report is prepared and reviewed and sent out to interested parties.

3. Document preparation and/or request to produce.

The closing agent reviews the new lender’s instructions/requirements, reviews instructions from other parties to the transaction, reviews legal and loan documents, assembles charges, and prepares closing statements and schedules the closing.

4. Settlement/closing the transaction.

Escrow/settlement agent oversees closing of the transaction. Seller signs the deed and closing affidavit. Buyer signs the new note and mortgage. The old loan is paid off. Seller, real estate professionals, attorneys and other parties present at the closing of the transaction are paid.

5. Post-closing.

After the signing has been completed, the escrow/settlement agent will forward payment to any prior lender, and pay all parties who performed services in connection with your closing (if they have not been paid). The transaction documents are recorded in the county in which the property is located. Title insurance policies are prepared and sent to the new lender and to you. This all happens without any further actions by the buyer or seller.

Our Sedona Branch provides  real estate Escrow Services, Title Services, Accounting Services and Construction Management services throughout Sedona and the Verde Valley.  Contact Us.

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About the Author:

Randy Crewse has been in the real estate business since 1974. He has sold many types of real estate from farm land and timberland, residential properties to commercial buildings and vacant land. Randy has either owned or managed real estate offices for for over 30 years of his 42 years in the real estate business. Randy and his wife Milton have made Sedona, Arizona their home since 1994.