Arizona Real Estate Blog

Sellers Most Frequently Asked Escrow Questions

Here is a list of the questions I get most often about escrow.

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Q. When do I get my proceeds check?

A.  On the day of recording. You can request that your escrow officer either cut you a check or wire the funds

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Q.  Why do I have to pay interest on my loan pay-off past the day of recording?

A.  Your lender continues to accrue interest to the date that they post your loan as being paid in full. This could be one or two days from the date your escrow officer sends your pay-off check via overnight mail or wire transfer

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Q.  When do I get a refund form my impound account?

A.  After your escrow officer sends your pay-off check to your existing lender, you can expect to get your impound account back direct from your lender within 30-60 days. If you have questions after that time, it’s best to call your lender

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Q. When do I cancel homeowners / fire insurance?

A.  Please do not cancel your insurance until you have confirmed with your titleco. That your transaction has closed.

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Q.  Why does my escrow officer require that I complete a 1099 form?

A.  A 1099 form is the reporting form adopted by the IRS for submitting the information required by law.  Under guidelines established by the IRS, sellers of real property are required to have their sales price reported on the 1099 form.

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Q.  What is a Statement of Information?

A.  Statements of Information provide the title companies with the information they need to distinguish the buyers and sellers of real property form others with similar names, for the issuance of title insurance at close of escrow.  After identifying the true buyers and sellers, title companies may disregard the judgments, liens or other matters on the public records under similar names.

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Q.  I don’t understand tax pro-rations.  How do they work?

A.  Each year on January 1^st, the lien of that year’s property taxes attached to the land, pursuant to Arizona Law.  The lien is not due and payable until October 1^st of that year for the first half of that year’s bill and the second half of that year’s bill is not due until March 1^st of the following year.  Pro-rations are done to reimburse the buyer for the portion of the year that the seller has owned the property and has not yet paid taxes.

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Q.  What’ll I need to take with me to the title company to sign my documents for closing?

A.  Take one of the following: Arizona Drivers License, Arizona ID card or Military ID

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By the way, if you'd like to discuss how you can take advantage of all the great opportunities in this market feel free to call at (480) 430-9761 or click here and let's talk.