One important piece to the home buying and selling is the escrow and title piece. This isn’t the most glamorous piece so it isn’t talked about very often. The Elite Team at RE/MAX Peak Properties wants to educate you on what title and escrow mean when it closing on a home.
Once you have found your dream home and have come to an agreement with the seller you are entered into the “escrow period.” If you haven’t purchased or sold a home you, likely, don’t know what “escrow” is. In Arizona escrow is opened by a Title Company once a buyer and seller have come to a mutual agreement. Usually, an earnest deposit is deposited with the escrow company to get everything started. The title professional will start a title search. A title search will search public records for debts, legal judgments, and another homeownership issue to give the buyer peace of mind in their purchase. In the title search the title company will search prior deeds, deeds of trust, court judgments, delinquent taxes, liens, child support payments and CC&R’s (Covenants, Conditions, and Restrictions) and other easements and public agreements.
During this time the buyer will choose how they would like to take the title. There are many ways to take title in the state of Arizona. The way you take the title is really important when determining how you can sell your property or if you are to pass away while owning the property. Here are different ways:
-Community Property: Parties must have a legal marriage. Each person has a one-half interest in the property. The half ownership would pass on to assigned descendent.
-Joint Tenancy with Right of Survivorship: Parties do not need to be married. Each party owns an equal share of the property. Upon the death of a member the estate transfers to the remaining tenants.
-Community Property with the Right of Survivorship: Requires a valid marriage. Each partner owns a one-half share of the estate. Upon the death of one spouse the entire estate transfers to the remaining spouse.
-Tenancy in Common: Parties do not need to be married and can have different amounts of ownership in the estate. Each tenant can transfer their share of the estate. Upon death, the share of the estate will pass to the assigned descendent.
You may wish to consult with an attorney, tax account or other professionals when deciding how to take title.
If a buyer is getting a loan the escrow officer will work closely together with the lender to put together all of the settlement statement fees. The escrow officer will prepare for both the buyer and the seller a settlement statement that will lay out all of the costs needed from each party to close on a property. The escrow company is in charge of collecting all of the monies associated with the property sale and disbursing the funds to the appropriate parties.
Though you may not have too many dealings with the escrow company while you are buying or selling a home, they play a very pivotal role behind the scenes. We are happy to connect you to one of our referral partners in this field. We often work closely with the great folks Pioneer Title Agency and Lawyers Title Agency.
We are always striving to be the best Flagstaff Real Estate Professionals in the business. We are happy to answer any questions involving the selling or purchasing of Flagstaff real estate. Don’t hesitate to call or text us at (928) 714-0001 or email us at [email protected]