Arizona title and escrow.
A neutral middle,
and a recorded deed.
In Arizona one neutral company usually handles both escrow and title insurance, and a sale closes only when the deed is recorded with the county recorder. Under the standard contract the seller pays for the buyer's owner's title policy and the escrow fee is split equally.
A neutral third party.
Arizona law defines escrow as money, documents or other property handed to a neutral third party with no interest in it, to be released when set conditions are met (A.R.S. 6-801). The escrow agent is a trustee of the money it holds (A.R.S. 6-841.01). Escrow agents are licensed and audited by the state.
In Arizona, escrow and title services are usually handled by the same company. The Arizona REALTORS (AAR) purchase contract serves as the escrow instructions, so escrow follows the contract terms rather than either side.
Title insurance, two policies.
Title is legal ownership. After escrow opens, the title company issues a title commitment: its promise to insure, subject to listed exceptions and requirements. Under the AAR contract, the buyer has five days after receiving it, and after notice of any new exceptions, to object in writing. Recorded CC&Rs, deed restrictions and easements show up here.
Owner's policy
Protects the buyer's ownership if someone brings a claim that arose before the purchase, such as an unpaid contractor or old tax debt.
Lender's policy
Usually required by the mortgage lender. It protects the lender's loan amount, not the buyer's equity.
Who pays, per the form
The seller pays for the owner's policy. The buyer pays for the lender's policy and any extended owner's coverage the buyer chooses.
Who pays what under the contract.
These are the defaults in the AAR form. They can be changed by agreement, and the final numbers appear on the settlement statement escrow prepares.
- Property taxes:Prorated to the close of escrow date using the latest tax figures.
- HOA dues and similar fees:Prorated as of closing unless the contract says otherwise.
- Lender's title policy:Paid by the buyer.
From open escrow to recording.
Close of escrow, in the AAR contract, means the moment the deed is recorded at the county recorder. If escrow or the recorder is closed on the scheduled date, closing moves to the next day both are open.
- Escrow opens.The contract and earnest money go to escrow. Escrow notifies any HOA of the pending sale.
- Title commitment.The buyer reviews it and has five days to object.
- Closing Disclosure.A buyer with a mortgage must receive it at least three business days before closing, under federal rules.
- Signing.Buyer and seller sign. The buyer's loan documents are due no later than three days before closing under the AAR contract.
- Recording.Escrow records the deed with the Maricopa County Recorder, with an Affidavit of Property Value or an exemption code.
- Disbursement.Escrow pays out funds under the settlement statement.
Wires and fraud alerts.
The Arizona Department of Real Estate warns that wired money sent to a fraudster is usually not recoverable. Before you wire, call your escrow officer at a number you got in person or from a trusted source, never one from an email.
Two free tools help owners. The Maricopa County Recorder's Maricopa Title Alert notifies you when a document is recorded under your name. The Department of Real Estate's Early Real Estate Sales Alert System notifies registered owners when escrow opens a sale on their property, if the parties consent.
Common questions
Is the escrow company on my side?
Escrow is neutral. Arizona law defines escrow as a third party with no interest in the property, and it follows the contract as its instructions.
What is the difference between owner's and lender's title insurance?
An owner's policy protects your ownership. A lender's policy protects the lender's loan and is usually required for a mortgage.
Who pays for title insurance in Arizona?
Under the AAR purchase contract, the seller pays for the owner's policy and the buyer pays for the lender's policy, unless the contract says otherwise.
Who pays escrow fees?
The AAR contract splits them equally unless the parties agree otherwise.
When is the house officially mine?
At close of escrow, which the contract defines as recording the deed with the county recorder.
How long do I have to review the title commitment?
Five days after you receive it, and after notice of any new exceptions, under the AAR contract.
What does recording cost in Maricopa County?
The Recorder lists a standard fee of $30 per document, with some exceptions.
How do I avoid wire fraud?
Call your escrow officer at a verified number before sending money. Never use phone numbers or instructions from an unexpected email.
Questions about title and escrow?
Buying soon? Before you write an offer, I will walk you through how title and escrow work and what to check in the title commitment. If you already have an agent under contract, ask them first. Call or text 480-485-4261.
This page is general information, not legal or tax advice. Sources: A.R.S. 6-801; A.R.S. 6-841.01; A.R.S. 11-1133; the Arizona REALTORS Residential Resale Real Estate Purchase Contract (October 2022 form) from Arizona REALTORS; Arizona REALTORS, Five Things You Should Know About Escrow and Title; CFPB, What is owner's title insurance?, What is lender's title insurance? and When do I get a Closing Disclosure?; Maricopa County Recorder FAQs and Maricopa Title Alert; Arizona Department of Real Estate Wire Fraud Advisory and Early Real Estate Sales Alert form. All checked 28 October 2026.