Welcome to the Frequently Asked Questions center. Here, you’ll find answers to common questions about our escrow services. If you don’t find the information you’re looking for, please contact us directly; our team is ready to assist you with any specific needs or questions you may have.
Escrow is a financial arrangement where a neutral third party, known as the escrow agent, securely holds funds, documents, or property on behalf of the other parties involved in a transaction. The escrow agent ensures that all conditions of the transaction, as agreed upon by the parties (buyers, sellers, lenders, etc.), are met before releasing any funds, documents, or property. This process helps protect all parties involved by providing a transparent, secure, and efficient way to manage the transfer of assets during transactions, especially in real estate. Escrow is used to ensure that no property or money changes hands until all of the terms of an agreement are fulfilled, reducing the risk of fraud or mismanagement.
An escrow is essential because it serves as a neutral third party to ensure that all conditions of a transaction are met before property and money change hands. It protects all parties involved by holding the funds, documents, and property involved in the transaction until all the terms of the agreement have been fulfilled.
The choice of escrow agent is typically agreed upon by the buyer and seller. However, the specific preferences can vary depending on local practices and negotiations between the parties. Often, the real estate agent or broker may suggest an escrow officer or company they have worked with before, but ultimately, the decision can be made collaboratively by both parties involved in the transaction.
While in escrow, the buyer and seller have several responsibilities to ensure a smooth process:
- Buyers should perform due diligence, such as property inspections, obtaining financing, and reviewing the property title to ensure there are no issues that could impact ownership.
- Sellers need to comply with agreed-upon repairs, maintain the property in good condition, and meet any other conditions specified in the agreement.
- Both parties should stay in communication with the escrow agent, providing all required documentation and fulfilling their respective obligations as specified in the escrow agreement.
Arizona Escrow & Financial is based in Phoenix, Arizona and specializes in providing escrow services throughout the entire state.
We service the escrow needs of customers statewide and in some cases nationally and internationally.
AEF was founded in 1976 and has over 40 years of experience in facilitating escrow transactions across various industries.
Yes, AEF is a women-owned business. In 2010, Monica May-Dunn became a minority owner of AEF eventually acquiring 100% of the company stock in 2023.
No, all transactions at Arizona Escrow must have at least two parties.
Yes, an escrow can be held between an attorney and their client. In this case, the attorney may act as a part to the escrow, wherein the funds or documents are held until the conditions of the agreement are met.
No, mortgage companies collect taxes and insurance (in an escrow / impound account) to insure that they are paid timely. This is an agreement between you and your mortgage company. Arizona Escrow does not provide this service due to the face that we hare not mortgage holders.
A closing statement is a detailed document that outlines the financial terms and disbursements of a real estate transaction, including all fees, costs, and credits involved.
Fees can include escrow services, government recording charges, title insurance, and miscellaneous services such as lien searches or notary fees. Costs vary based on transaction type (e.g., residential, commercial) and complexity.
If a transaction is canceled, any fees earned up to that point, such as escrow fees, are generally non-refundable. Additional charges may apply for services rendered before the cancellation. Cancellations are reviewed on a case by case basis.
The escrow number should be included on all relevant documents and correspondence related to the transaction. This ensures that all parties and documents are properly associated with the specific escrow account.
For specific bank addresses related to the escrow account, please contact your escrow officer directly as they can provide the necessary details based on your transaction.
Yes, email with receipt
Yes, you can pay with a Cashier’s Check. Ensure that it is made payable to Arizona Escrow & Financial and delivered to our office at the address provided above.