You found the right home. Now you want a smooth path from signed offer to keys in hand. If you are new to Arizona or buying a higher‑end property in Scottsdale, escrow can feel like a black box. You deserve a clear roadmap that keeps you informed, protects your deposit, and gets you to closing on time. This guide walks you through how escrow works in Scottsdale, what to expect at each step, and how to keep the process calm and organized. Let’s dive in.
What escrow means in Arizona
Escrow is a neutral stage where a third party holds funds and coordinates the steps of your purchase until the contract conditions are met. In Arizona, escrow is typically handled by a title company or independent escrow company. The escrow officer holds your earnest money and closing funds, manages documents, and instructs the recording of the deed once everything is ready.
Escrow and title are related but different. Escrow coordinates the process, while the title side performs the title search, issues the title commitment, and delivers owner and lender title insurance policies after closing.
Who does what
Your role and the seller
You and the seller sign the purchase contract, agree to timelines, and complete required documents. You schedule and complete inspections, make repair requests if needed, and provide loan items if you are financing.
Escrow officer and title company
The escrow officer opens escrow, holds your earnest money deposit, prepares closing statements, and disburses funds at the end. The title team runs the title search, issues the title commitment, and clears any liens or title issues so your deed can record.
Lender and HOA
If you use a lender, the lender orders the appraisal and completes underwriting. Many Scottsdale homes are in communities with HOAs. The seller or their agent orders the HOA resale package so you can review rules, dues, budget, and any pending assessments.
Typical escrow timeline in Scottsdale
Every deal is unique. The timing depends on financing, inspections, responsiveness, and title or HOA items. Here is a practical overview for a 30 to 45 day financed purchase and a quicker cash closing when possible.
Contract acceptance — Day 0
- Buyer and seller sign and accept the contract.
- You deposit earnest money per the contract, which opens escrow.
- The escrow officer issues an escrow number and next steps.
Days 0 to 3 — Opening items
- Title search and title commitment are ordered.
- You schedule inspections, such as general home, roof, pool, HVAC, and pest.
- If financing, you submit a full loan application and your lender orders the appraisal.
Inspection period — Commonly first 5 to 14 days
- Your due diligence window begins. You complete inspections and review disclosures.
- You may request repairs, credits, or cancel as allowed by the contract and deadlines.
- The HOA resale package is requested. You review CC&Rs, rules, dues, budgets, and any assessments.
Mid‑escrow — Title and lender clearing
- Title issues a preliminary commitment showing exceptions and requirements to insure.
- Any liens, easements, payoffs, or other title items are addressed.
- The lender completes underwriting. Appraisal results arrive, and any gap is negotiated.
- If repairs are agreed, a repair addendum is signed and tracked to completion.
Final week — Closing and funding
- Escrow prepares your final Closing Disclosure or Settlement Statement.
- You complete a final walkthrough and sign closing documents. Remote notarization may be available.
- You wire certified “good funds” to escrow. The lender wires loan proceeds.
- Escrow records the deed and any mortgage. Title policies are issued, funds disbursed, and you receive keys per the contract.
Typical total length
- Conventional financing: about 30 to 45 days.
- Cash purchase: often 7 to 14 days if title and HOA items are clear.
- Luxury properties: 30 to 60 days or longer if inspections, negotiations, or jumbo loan underwriting take more time.
Earnest money in Scottsdale
Your earnest money deposit shows good faith and is held in escrow under the contract terms. For many Arizona homes, a common starting point is 1 to 3 percent of the price. In competitive situations or luxury deals, deposits often trend higher and may be substantial if negotiated.
Refundability depends on the contract. You typically have rights to cancel during the inspection period or if your financing contingency is not satisfied. After contingencies are removed or deadlines pass, remedies become contract specific. The escrow company issues a receipt and holds your deposit per written instructions.
Inspection period and contingencies
Most Arizona contracts include a negotiated inspection or due diligence window. Many buyers use 5 to 10 business days. Luxury purchases often request a longer window to allow specialty inspections.
Common inspections include general home, pool and spa, roof, plumbing, electrical, HVAC, and pest. Specialty needs may include irrigation systems, solar, septic, soils, or technology systems. You can request repairs or credits, accept the home as‑is, or cancel as allowed by the contract and timeline.
HOAs and resale packages
Many Scottsdale neighborhoods and condo communities have HOAs. The HOA resale package typically includes CC&Rs and bylaws, rules and restrictions, current dues, budgets and reserves, pending assessments, and a ledger.
Turnaround times vary from a few business days to two weeks, and fees are common. Delays here can slow closing, so order the resale package immediately after acceptance. Review use restrictions, parking rules, short‑term rental policies, and reserve funding early, especially if you plan a second home or rental use.
Title commitments and title insurance
The title search confirms the seller’s ownership and looks for liens, easements, or judgments. The title commitment lists what must be cleared and any exceptions to coverage. After closing, the lender receives a lender policy and you can receive an owner’s title policy.
Title fees vary by company and deal, and title clearance can extend escrow if liens or payoffs are involved. In Scottsdale, watch for items like mechanics’ liens from recent remodels, easements that affect planned improvements, or estate and trust matters that require extra documentation. Many professionals recommend an owner’s policy to protect against hidden defects.
Financing, appraisals, and jumbo loans
Jumbo financing and complex appraisals are common in Scottsdale’s luxury segment. Underwriting can take longer and appraisals may come in below the contract price. If the appraisal is low, your options include paying the difference in cash, negotiating a price change, challenging the appraisal in rare cases, or canceling if a contingency allows.
Plan for this risk before you write the offer. Some buyers keep a cash cushion or consider bridge options to manage potential gaps.
Week of closing: what to expect
You will receive your final settlement figures and instructions from escrow. You will sign your documents and wire funds by the deadline. Always confirm wiring instructions directly with escrow using a known phone number to prevent wire fraud.
Once escrow has your good funds and the lender’s funds, the team submits the deed and mortgage to the county for recording. After recording, funds are disbursed and keys are delivered per the contract. This is the moment your ownership is official.
Buyer checklist to keep escrow calm
- Immediately after acceptance
- Confirm escrow is open and get your earnest money receipt.
- Ask the seller’s side to order the HOA resale package right away.
- Share contact details for your lender and any advisors with escrow.
- First 72 hours
- Schedule inspections and provide access instructions.
- Request the preliminary title commitment and review exceptions with your agent.
- Confirm your lender has all documents and the appraisal is ordered.
- During due diligence
- Track inspection deadlines and submit any repair or credit requests on time.
- Add specialty inspections for luxury systems if needed.
- Mid escrow
- Monitor title clearance and any seller payoffs or releases.
- Review the HOA package for rules, assessments, and litigation notices.
- Discuss appraisal results early and plan for a gap if it appears.
- Final week
- Confirm signing appointments and what identification you need.
- Verify wire instructions by phone with escrow. Do not rely on email only.
- Complete your final walkthrough and confirm possession details.
For luxury and remote buyers
High‑end homes often involve larger deposits, extended due diligence, and specialty consultants for complex systems. Privacy, flexible scheduling, remote signings, and secure key transfer can all be built into escrow instructions. If you are relocating or buying from out of state, a concierge approach keeps inspections, title clearance, HOA review, and underwriting moving in parallel so you can focus on decisions, not logistics.
If you want a calm process and expert coordination, a boutique, founder‑led advisory can simplify each step while protecting your privacy.
Ready to talk through your next Scottsdale purchase or sale and map the right escrow strategy for your goals? Contact The Hidder Team. Request Private Access / Schedule a Private Consultation.
FAQs
How does escrow work for a Scottsdale home purchase?
- Escrow is a neutral process managed by a title or escrow company that holds your funds, coordinates documents, and records the deed once contract conditions are met.
Who holds my earnest money and when is it refundable?
- The escrow company holds your deposit. Refundability depends on your contract contingencies, such as inspection, loan, or HOA review, and meeting the deadlines.
How long does escrow usually take in Scottsdale?
- Financed purchases commonly take 30 to 45 days. Cash deals can close in 7 to 14 days if title and HOA items are clear. Luxury deals may take longer.
What if the appraisal comes in below the price?
- You can pay the difference in cash, renegotiate price, rarely contest the appraisal, or cancel if protected by a contingency in the contract.
When should the HOA resale package be ordered for a Scottsdale property?
- Order it immediately after contract acceptance. Waiting on HOA documents is a common cause of escrow delays.
Is owner’s title insurance recommended in Arizona?
- Many professionals recommend an owner’s policy to protect against hidden title defects. The one‑time premium is often small compared to potential losses.
What are “good funds” and how do I avoid wire fraud?
- Escrow requires certified funds or a bank wire. Always confirm wire instructions by phone using a known number before sending money.
