Buying or selling in Paradise Valley comes with a lot of moving parts, and escrow is the engine that keeps everything running smoothly. You want your funds protected, your deed recorded correctly, and your closing to stay on schedule. When you understand how escrow works in Arizona, you can move through each step with confidence and fewer surprises. This guide walks you through the process from opening escrow to recording in Maricopa County, with practical tips for luxury and cash transactions. Let’s dive in.
What escrow is in Arizona
Escrow is a neutral holding process that safeguards money, documents, and instructions until all contract conditions are met. The escrow holder follows the written escrow instructions signed by both parties. In Arizona, title companies and independent escrow companies commonly handle both title work and escrow in one place, which keeps coordination tight and timelines clear.
This process protects you by ensuring funds, deeds, payoffs, and recording all happen in the right order. It also supports title insurance, which helps address title concerns and protects ownership and lender interests.
Paradise Valley escrow timeline
In Paradise Valley, most financed transactions close in about 30 to 45 days. Cash deals can close faster, often in 7 to 14 days, if documents and funds are ready. Your contract sets the exact timeline, so track dates closely.
Opening escrow (day 0)
- Buyer and seller sign the purchase contract.
- Buyer delivers earnest money to the named escrow company’s trust account.
- Escrow opens the file, issues an earnest money receipt, and orders the preliminary title report.
Title review (days 1–10)
- The title company issues a title commitment that lists recorded exceptions such as easements and liens.
- You and your agent review exceptions and raise concerns. The seller may cure defects or agree to acceptable solutions.
- The seller typically provides the Seller’s Property Disclosure for residential resales, subject to statutory exceptions.
Inspections and contingencies
- The buyer orders inspections, often within 7 to 10 days, as negotiated in the contract.
- Financing and appraisal steps begin if there is a loan. The lender orders the appraisal and provides title requirements.
- Contract deadlines set windows to cure issues or cancel if contingencies cannot be met.
Clearing conditions and finalizing
- The seller provides the deed, affidavits, HOA documents, and payoff statements if there is a mortgage.
- The buyer satisfies loan conditions. The lender prepares loan documents and funding instructions for escrow.
- Final numbers are prepared on a Closing Disclosure or settlement statement for review before signing.
Closing, funding, and recording
- The buyer signs loan documents and closing paperwork in person or via approved e‑signing options.
- Escrow confirms all conditions, receives lender funds and the buyer’s closing funds.
- The title company records the deed and deed of trust with the Maricopa County Recorder, often via eRecording. Recording transfers legal title.
- Escrow disburses funds according to instructions, including payoffs, commissions, prorations, and seller proceeds.
Post‑closing
- You receive the final settlement statement and, after recording, the owner’s title insurance policy.
- Keep these documents for your records and tax planning.
Who does what and what you sign
Everyone has a clear role. Knowing who does what helps you stay organized and ahead of deadlines.
Parties and roles
- Buyer: provides funds, meets contingencies, and signs closing documents.
- Seller: signs the deed, completes disclosures, and supplies payoff information.
- Escrow officer: neutral coordinator who holds funds, prepares statements, and manages recording.
- Title examiner/insurer: researches title, issues commitments and policies, and helps clear issues.
- Lender: sets loan conditions and funds at closing when applicable.
- Real estate agents: keep the transaction on track and support negotiation and document flow.
Key documents
- Purchase contract and any addenda.
- Earnest money receipt and funding confirmations.
- Title commitment with exceptions.
- Seller’s Property Disclosure and HOA documents when applicable.
- Payoff statements, deed, affidavits, loan package, and closing statements.
- Owner’s and lender’s title insurance policies after closing.
Title insurance and closing costs
Arizona transactions typically include two title policies. The owner’s policy protects your ownership rights, and the lender’s policy protects the lender’s lien. It is common in Arizona for the seller to pay the owner’s policy and for the buyer to pay the lender’s policy, but this is negotiable in the contract.
Escrow fees are often split 50/50, although many closing costs are negotiable. Maricopa County recording fees, lender fees, and title costs vary. Arizona generally does not have a state real estate transfer tax, and Maricopa County does not impose a typical residential transfer tax. Property taxes are prorated at closing per contract terms.
Maricopa County logistics and local practices
- Recording: The Maricopa County Recorder widely supports eRecording, which can speed up recording once funds are in.
- Timeline to record: Same day or within 1 to 3 business days is typical, depending on funding and cutoffs.
- HOA and communities: Many Paradise Valley properties have HOA or private agreements. Resale packets can take time, so request them early. Contracts often allow a set review period.
- Luxury and cash deals: Paradise Valley has many high‑end homes, so cash closings and shorter escrows are more common. Title may be more complex due to easements or private road agreements.
- eClosing options: Electronic signing and remote notarization may be available, subject to state law and lender acceptance. Some lenders still require wet signatures on certain documents.
Earnest money, contingencies, and disputes
Earnest money is deposited into escrow and held in a trust account. If a contingency allows cancellation within a deadline, the buyer usually receives a refund according to the contract. If there is a disagreement about the earnest money, escrow typically requires a mutually signed release or a court order and may interplead the funds if needed.
If contingencies are not met, options include extending deadlines by agreement, curing issues, or canceling. If a party defaults under the contract, remedies can include forfeiture of earnest money. Escrow follows written instructions and the contract’s default provisions.
Wiring safety and fraud prevention
Wire fraud is a real risk. Protect yourself with a few simple habits:
- Confirm wiring instructions by calling your escrow officer using a known, independently verified phone number.
- Avoid relying only on email for wire details. Use secure portals when provided.
- Double‑check account numbers before you send funds. Verify again if anything changes.
- Never wire to new or last‑minute instructions without verbal confirmation from escrow.
Practical checklists
For buyers
- Order inspections promptly and track your inspection deadline.
- Review the title commitment and discuss any exceptions with your agent and escrow.
- Prepare your ID, down payment, and closing funds. Ask about wiring timelines.
- Expect to pay the lender’s title policy and buyer‑side fees if customary in your contract.
- Start HOA document review as soon as they arrive.
For sellers
- Complete the Seller’s Property Disclosure early and gather supporting records.
- Request payoff statements for any loans and check HOA account status.
- Be ready to sign the deed and affidavits and provide any community documents.
- Review customary cost allocations so you understand net proceeds.
For both sides
- Keep a shared calendar of contract deadlines.
- Ask escrow for a preliminary settlement statement a few days before closing.
- Verify wiring instructions by phone using known contact information.
- Choose experienced local title and escrow teams who know Maricopa County recording.
Final thoughts
A smooth closing in Paradise Valley comes down to planning, clear communication, and a firm grasp of your escrow timeline. When you know what to expect at each step, you can focus on your goals, whether that means maximizing your sale or landing the right home with less stress.
If you want a calm, concierge‑style closing experience with local guidance from start to finish, connect with Kapanicas Group to Schedule a Free Market Consultation.
FAQs
Who holds earnest money in Arizona escrow?
- The escrow company holds it in a trust account and follows the contract and signed instructions.
How long does escrow take in Paradise Valley?
- Most financed deals close in 30 to 45 days. Cash transactions can close in 7 to 14 days if documents and funds are ready.
Who pays for title insurance in Arizona?
- It is common for the seller to pay the owner’s policy and the buyer to pay the lender’s policy, but this is negotiable in the contract.
What if a title problem is found in Maricopa County?
- The seller typically works to cure defects. The title company may offer solutions, endorsements, or holdbacks when appropriate.
Can escrow disburse funds if there is a dispute?
- Escrow will not release funds without written agreement from both parties or a court order. Some forms require mediation or arbitration.
Are electronic or remote closings available in Arizona?
- Many title and escrow companies support eSigning and eRecording. Remote notarization may be available depending on state law and lender acceptance.
