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.