New to Scottsdale and hearing “escrow” every other sentence? You are not alone. Whether you are buying your first home here or selling a long‑time residence, the escrow period can feel complex. In this guide, you will learn what escrow is, who does what, how long it usually takes in Maricopa County, and how to avoid common delays so you can close with confidence. Let’s dive in.
Escrow basics in Scottsdale
Escrow is a neutral process that safeguards funds and documents while your home sale or purchase moves toward closing. A licensed escrow or title company holds the earnest money, coordinates instructions from both sides, and manages the steps required to transfer ownership and disburse funds.
The key goals are simple. Protect the earnest money, confirm clear title, satisfy or release all contingencies, meet lender conditions if you are financing, record the deed with the county, and then disburse funds to the right parties. When each item is complete and verified, the transaction can close.
Who is involved in escrow
- You and the other party. You supply signatures, funds, and decisions on contingencies.
- Your real estate agents. Your agents coordinate inspections, documents, deadlines, and communication with escrow and title.
- The escrow officer/title company. They hold funds in a trust account, order the title search and commitment, prepare closing documents, and arrange recording and disbursement.
- Your lender if financing. The lender issues loan conditions, orders the appraisal, and wires loan funds at closing.
- HOA management when applicable. They provide the required resale packet, fee schedules, and account status for prorations and payoff.
Timeline at a glance
In the Phoenix metro, including Scottsdale, most financed transactions close in about 30 to 45 days from contract acceptance. Cash or highly coordinated closings can happen in 7 to 21 days. Complex deals sometimes need 60 or more days. Your exact timeline depends on lender speed, inspections, HOA documents, and title findings.
A typical sequence looks like this:
- Day 0: Contract is signed. Earnest money is usually due within a few business days per the contract.
- Days 0–3: Escrow opens. Earnest money is deposited in the escrow trust account.
- Days 3–10: Title search begins and a preliminary title commitment is delivered. If you are financing, the appraisal is ordered and underwriting starts.
- Inspection period: Usually within the first 10 days, you complete inspections and decide whether to accept the home, request repairs or credits, or cancel under the contingency.
- Days 10–21: Contingency deadlines arrive for inspections, financing, appraisal, and title review.
- Days 20–30: Your lender issues the Closing Disclosure and, once conditions are met, a clear‑to‑close.
- Closing day: You sign, all funds are verified, and the deed is recorded with the Maricopa County Recorder. Possession follows the contract terms.
Recording can occur the same day or the next business day depending on cutoff times, funding, and notarization requirements. The recording makes your transfer of ownership part of the public record.
Earnest money explained
Earnest money shows good faith and is credited to your purchase at closing. In our area, amounts are negotiated and often fall around a small percentage of the price, commonly 1 to 3 percent. What is right for you depends on the property, offer strength, and your risk tolerance.
You deliver the funds to the named escrow or title company, which places them in a regulated trust account. If the contract cancels, how the earnest money is handled depends on the contingency status and the written agreement. Your agent will help you understand those terms before you sign.
Title, commitment, and title insurance
The title officer reviews public records to confirm the chain of ownership and to identify liens, judgments, easements, or other encumbrances. Early in escrow, you receive a title commitment that lists items to clear before closing and exceptions that remain.
Most buyers choose title insurance. A lender’s policy is standard with financing. An owner’s policy is optional but common and provides protection for certain title defects that were not found in the public record search. In Scottsdale, many homes are in homeowners associations, so HOA liens or unpaid assessments must be verified and handled before close.
Contingencies to track
Arizona contracts include several common contingencies. Each has a deadline and requires a decision in writing.
- Inspection. You can inspect, negotiate repairs or credits, or cancel within the period.
- Financing. If you cannot obtain the loan by the deadline, you may be able to cancel per the contract terms.
- Appraisal. A low appraisal can trigger renegotiation or cancellation options.
- Title. You have a window to review the title commitment and object to certain items.
- HOA or condo documents. You can review the resale packet and cancel within the defined period if concerns arise.
Your agent tracks these dates so you can act on time and keep your options intact.
Closing costs and prorations
Closing costs include lender fees, title and escrow fees, title insurance premiums, recording fees, and prorations for property taxes and HOA dues. Who pays which fees is a matter of local custom and negotiation in Arizona, so always defer to what your purchase contract states and what your lender estimates.
Prorations adjust shared expenses so each party pays their fair share through the day of closing. If taxes, HOA dues, or assessments are due or in arrears, the title company calculates and disburses the correct amounts at close.
Scottsdale factors that affect timing
- HOA resale packets. Because many Scottsdale properties are in HOAs, the resale packet is often a gating item. It contains CC&Rs, bylaws, financials, and details about fees or ongoing assessments. Delays in ordering or receiving this packet can slow your escrow.
- Liens or judgments. It is not unusual for a title search to surface a paid‑off loan that needs a release, a judgment, or a contractor lien. These must be cleared or arranged with payoffs or holdbacks before closing.
- County recording volume. Maricopa County processes a high volume of recordings. Month‑end or peak market periods can add short delays. Plan your movers and utility transfers with a little cushion.
- Competitive offers. In popular Scottsdale neighborhoods, some buyers shorten contingency windows or increase earnest money to stand out. These are strategic choices that carry risk. Discuss them with your agent before you commit.
Fraud‑safety essentials
Wire fraud targets real estate closings. Protect yourself:
- Call your escrow officer using a known, verified phone number to confirm wire instructions before sending funds. Do not rely on email alone.
- Never click unexpected links or open attachments related to wiring.
- If instructions change, treat it as a red flag and re‑verify by phone.
Buyer checklist
Use this quick list to stay ahead of deadlines.
- Deposit earnest money by the contract due date and keep your receipt.
- Schedule your home, termite, and any specialty inspections immediately.
- Review the title commitment and HOA resale packet within your review windows.
- Keep your lender supplied with documents and respond quickly to conditions.
- Shop and bind homeowners insurance before clear‑to‑close.
- Confirm how you will deliver funds for closing and verify wiring instructions by phone.
- Plan utility transfers and move‑in logistics around recording day.
Seller checklist
Set your sale up for a smooth close.
- Gather mortgage payoff info and disclose any liens or judgments early.
- If the home is in an HOA, request the resale packet right away and share access with the buyer.
- Complete agreed repair items and provide receipts before the re‑inspection.
- Keep your ID and signing logistics ready for your notary appointment.
- Confirm how you want proceeds disbursed and the timing after recording.
How we keep escrow smooth
You deserve a calm, predictable closing. With a two‑agent model and deep neighborhood expertise, we coordinate closely with your escrow officer and lender, track every deadline, and communicate early about items that can slow a Scottsdale closing, like HOA packets or lien releases. We also brief you on wire‑safety steps and provide clear next actions from acceptance through recording.
If you are buying, we help you shape a strong yet safe offer strategy for Scottsdale’s competitive areas, including smart contingency timelines and earnest money considerations. If you are selling, we prepare clean disclosures, anticipate title questions, and manage repair negotiations so you reach the finish line on time.
Ready to move forward with a team that treats your closing like a top priority? Connect with the Julie Jurgenson Team for guidance tailored to your home and timeline.
FAQs
How does escrow work in Scottsdale from start to finish?
- After your offer is accepted, escrow opens, earnest money is deposited, inspections and title review occur, your lender issues clear‑to‑close if financing, and the deed records with Maricopa County, which transfers ownership and triggers fund disbursement.
How long does escrow usually take in Maricopa County?
- Most financed purchases close in about 30 to 45 days, while some cash or well‑coordinated deals close in 7 to 21 days. Complex cases may take longer depending on lender, title, appraisal, or HOA timing.
Who holds my earnest money in Arizona?
- The escrow or title company named in the contract holds it in a regulated trust account and applies it at closing or disburses it per the contract if the deal cancels.
How much earnest money should I expect in Scottsdale?
- Amounts are negotiated. Many buyers offer around 1 to 3 percent of the price, though some competitive situations call for more. Choose a number that supports your strategy and aligns with your contract rights.
What can delay my Scottsdale closing?
- Late HOA resale packets, unresolved liens or judgments, slow underwriting, appraisal shortfalls, and incomplete documentation are common causes. Early coordination with your agent, lender, HOA, and escrow officer helps prevent delays.
Who pays for title insurance and escrow fees in Arizona?
- Payment is set by local custom and your written contract. Ask your agent to review your agreement and your lender’s Loan Estimate or Closing Disclosure to see how fees are allocated.
