Buying or selling in Scottsdale and hearing the word “escrow” tossed around? You are not alone. Escrow is the engine that moves your deal from accepted offer to recorded deed, and understanding it helps you avoid delays and costly mistakes. In this guide, you will learn what escrow means in Arizona, who is involved, how each step works in Scottsdale, and what you need to do to stay on track. Let’s dive in.
What escrow means in Arizona
Escrow is a neutral process where a licensed title and escrow company holds funds and documents, coordinates title work and payoffs, prepares closing statements, manages signing, and ensures your deed records with Maricopa County. In Arizona, one company commonly handles both title and escrow. That company also issues the owner’s and lender’s title insurance policies at closing.
You and the seller give written instructions through the purchase contract. The escrow holder follows those instructions, works with your lender if you have one, and releases funds only when the contract conditions are met.
Who is involved
- You and the seller
- Your real estate agents
- Title and escrow company serving as a neutral holder
- Your lender if you finance
- HOA management for condos or planned communities
- Maricopa County Recorder for deed recording
- Attorneys in special or complex cases
Scottsdale escrow timeline
Below is a typical sequence for Scottsdale and greater Maricopa County. Exact timing depends on your contract, loan, and HOA response times.
1) Offer accepted and contract signed
You and the seller sign the Arizona purchase contract. It names the escrow holder, sets the earnest money deadline, inspection period length, financing dates, and the target closing date.
2) Earnest money deposit
You deliver your earnest money to the escrow company by the contract deadline, often within 24 to 72 hours of acceptance. In many Scottsdale deals, earnest money ranges from several thousand dollars or roughly 1 percent of the price. In competitive or luxury segments, 2 to 3 percent or more is common. This deposit is credited to you at closing unless the contract says otherwise.
3) Escrow opens and title commitment
The title company opens the file and orders a title search. You receive a preliminary title commitment that lists recorded items like liens and easements. This often arrives within 3 to 10 business days. Any issues are flagged for resolution before closing.
4) Inspections and due diligence
Arizona contracts commonly use a short inspection period. In Scottsdale, 7 to 10 days is typical, with 10 days frequently used in practice. Use this window to schedule a general home inspection and any specialty inspections you need, such as roof, pool, pest, or sewer. You can negotiate repairs or credits based on findings according to the contract.
5) HOA documents and disclosures
If the home is in an HOA or a condo community, you receive a resale package with CC&Rs, bylaws, and financials. Turnaround can range from several business days to about two weeks. Review these documents within your contract timelines.
6) Loan processing and appraisal
If you are financing, your lender orders the appraisal and completes underwriting. Many loans close in about 30 to 45 days. Cash purchases can close faster, sometimes in 1 to 2 weeks, provided title is clear and everyone signs promptly.
7) Clearing title
The title team works to clear any exceptions or defects, such as liens or judgments, so your title insurance can be issued at closing. The seller may need to provide payoffs or cure certain items.
8) Closing and signing
Escrow schedules signing for you and the seller. You sign your loan and closing documents, and you wire your cash to close or bring a cashier’s check if permitted by the escrow holder. Follow wire safety steps and always verify instructions by phone using a trusted number.
9) Funding and recording
After your lender funds the loan, escrow submits documents and funds for recording with the Maricopa County Recorder. Many recordings update within 24 to 72 hours after funding, though timelines can vary.
10) Post-recording and keys
Once recording confirms, escrow disburses sale proceeds, pays off any liens, and issues final title policies. Keys and possession follow your contract terms, often at recording unless you agreed to a different possession date.
Contingencies and how they work
Inspection contingency basics
- You may request repairs or credits during your inspection period. If you cannot reach an agreement, you can cancel within the allowed timeframe and typically receive your earnest money back under the contract terms.
Financing contingency basics
- If you cannot obtain loan approval within the agreed timeline, you may cancel per the financing contingency and retain your earnest money if done within the contract period.
Appraisal shortfalls
- If the appraisal is lower than the purchase price, you can renegotiate, bring additional cash, or cancel if your contract allows. Some buyers waive appraisal contingencies, which increases risk.
Title issues
- Title defects must be cleared or insured over before closing. If a serious item cannot be resolved, your contract outlines options, including cancellation.
HOA red flags
- If HOA documents reveal issues such as pending assessments or litigation, you may seek concessions or cancel within the allowed review window.
Earnest money disputes
- If both sides do not agree on who gets the earnest money after a dispute, the escrow company holds funds until there is a written agreement or a court or arbitration order, consistent with the contract instructions.
Scottsdale costs and prorations
Arizona does not have a statewide real estate transfer tax. Your closing will include county recording fees, title insurance premiums, and customary charges listed on your closing statement. Property taxes and HOA dues are often prorated at closing. Maricopa County assesses property taxes at the county level, and your statement will show how prorations are calculated.
Wire safety and fraud prevention
Wire fraud remains a serious risk in real estate. Always verify wiring instructions by calling your escrow officer at a trusted, known phone number. Do not rely only on email. If anything looks off, pause and confirm with your agent and escrow team before sending funds.
Cash vs financed closings
- Cash: Often 7 to 14 days if title is clear and everyone signs on time. Fewer moving parts and no appraisal unless you order one.
- Financed: Commonly 30 to 45 days to allow for appraisal, underwriting, and lender conditions.
Your Scottsdale escrow action plan
Use this checklist to stay ahead from acceptance to keys.
Before you write an offer
- Get a full lender preapproval.
- Decide on an earnest money amount with your agent.
- Discuss which title and escrow company you prefer and what the seller proposes.
Right after acceptance
- Deliver earnest money by the contract deadline.
- Book inspections immediately to fit within your 7 to 10 day window.
- Review the Seller Property Disclosure Statement and request HOA documents if applicable.
- Send your lender requested documents promptly to keep underwriting on track.
A few days before closing
- Review the draft closing statement and all prorations.
- Confirm wire instructions by phone directly with your escrow officer.
- Bring valid ID to signing and confirm how and when you will receive keys.
Ready for a smooth Scottsdale closing?
A clear plan, quick responses, and the right escrow and title team make all the difference. If you want concierge-level guidance through every step, from earnest money to recording and keys, connect with a local expert who does this every day. Reach out to Logan Lewis to walk through your timeline, costs, and next steps.
FAQs
What does the escrow company do in Scottsdale transactions?
- It holds funds and documents, coordinates title work and payoffs, prepares closing statements, manages signing, receives lender funds, and submits the deed for recording with Maricopa County.
How much earnest money is typical in Scottsdale?
- Many buyers deposit several thousand dollars or about 1 percent of the price, while competitive or luxury deals often use 2 to 3 percent or more, as negotiated in your contract.
How long is the inspection period in Arizona deals?
- In Scottsdale practice, buyers often have 7 to 10 days, with 10 days frequently used. Your exact window is set by your contract, so schedule inspections immediately.
How long does it take to close in Maricopa County?
- Cash purchases can close in about 1 to 2 weeks if title is clear. Financed purchases commonly take 30 to 45 days to allow time for appraisal and underwriting.
When do I get the keys in Scottsdale?
- Possession typically occurs at recording, unless your contract specifies a different possession date. Confirm timing with your agent and escrow officer.
How can I avoid wire fraud during escrow?
- Always confirm wiring instructions by calling your escrow officer at a known phone number. Do not send funds based only on email instructions, and verify any changes in writing and by phone.
