Buying in Tucson and hearing the word “escrow” at every turn? You are not alone. Escrow is the heartbeat of a smooth closing, but it often feels opaque when you are balancing inspections, financing, and timelines. In this guide, you will learn what escrow really means, how it works in Pima County, what it costs, how long it takes, and how to protect your funds. Let’s dive in.
Two meanings of escrow
Closing escrow
Closing escrow is the neutral process that moves your purchase from contract to ownership. A licensed escrow or title company holds funds and documents, follows written instructions from you and the seller, coordinates with your lender, and disburses money only when every contract condition is met. Your deed is recorded with the Pima County Recorder, and that recording is what legally transfers ownership to you.
Mortgage escrow account
A mortgage escrow account, sometimes called an impound account, is different. This is a lender-managed account used to pay your recurring property expenses, such as property taxes and homeowner’s insurance. Lenders follow federal rules that explain how these accounts are set up, how cushions are limited, and how annual statements work. Whether you have one affects your monthly payment and what you will bring to closing.
Tucson escrow timeline
Every transaction is unique, but many Tucson purchases follow a similar path from offer to keys.
Open escrow and deposit
Once you and the seller sign the purchase agreement, escrow is opened with the company named in the contract. You will send your earnest money to the escrow holder by the deadline in your agreement. The escrow agent holds it per the contract and written instructions.
Title search and insurance
The title company orders a title search to check for liens, encumbrances, easements, and chain of title. Two types of title insurance are common at closing: a lender’s policy if you are financing and an owner’s policy for you. The owner’s policy is optional but recommended to protect your ownership from covered title defects that may appear after you buy.
Inspections and appraisal
During your inspection period, you will complete your due diligence. In Southern Arizona, this often includes a general home inspection, a termite or wood-destroying organism inspection, and careful checks of HVAC and roofing due to our desert climate. If the property uses a private well or septic system, you will typically order well flow tests and septic inspections. Your lender will schedule an appraisal and may require certain repairs or documentation before issuing a clear to close.
Closing Disclosure timing
If you are using a mortgage, federal rules require your lender to deliver a Closing Disclosure at least three business days before you consummate the loan. Escrow coordinates signing and funding so that this timing is met and your closing stays on track.
Signing, funding, and recording
Before you close, you will do a final walkthrough, usually within 24 to 48 hours of the close date, to confirm agreed repairs and property condition. You will sign closing documents at the title office or via an approved mobile notary. After your lender sends funds and all conditions are satisfied, the escrow agent records the deed with the Pima County Recorder. Recording is the legal transfer of ownership. Once recorded, escrow disburses funds to the seller and other parties.
After closing
You will receive copies of your signed documents and, if you opted in, your owner’s title policy. Escrow will distribute payoffs, commissions, and prorations as agreed in your contract.
Escrow costs and who pays
You will see a mix of one-time closing fees and prorations. In Tucson, payment of these costs is negotiated in the purchase contract.
- Escrow or settlement fee: This is the fee charged by the escrow or title company to handle the closing. Who pays is negotiable and should be outlined in your contract.
- Title insurance premiums: If you have a mortgage, your lender will require a lender’s policy. The owner’s policy is optional but recommended. Both are one-time premiums paid at closing.
- Recording fees: The Pima County Recorder charges fees to record your deed and other documents. These appear on your closing statement.
- Prorations and adjustments: Property taxes, HOA dues, and some utilities are prorated between you and the seller based on the closing date.
- Loan-related and third-party fees: Expect loan origination, appraisal, inspection fees, wiring fees, and courier fees as applicable.
Arizona does not have a statewide real estate transfer tax. You will still pay local recording fees and any agreed costs in the contract.
Local factors to expect
Buying in Tucson often involves property features and conditions that shape escrow timelines and due diligence.
- Well and septic: Properties outside municipal service areas may use private wells and septic systems. Plan for inspections and any county-related permits or checks.
- HOA and CC&Rs: Many Tucson communities have homeowners associations. Escrow will obtain HOA documents so you can review them during your contingency period. Unpaid assessments or association issues can affect title.
- Older homes and desert climate: Roof, stucco, irrigation, and HVAC systems deserve close attention. An inspector experienced with Sonoran Desert conditions is helpful.
- Wood-destroying organisms: Termite and pest inspections are common. Findings may lead to repairs, treatments, or negotiated credits.
- Water rights and irrigation: Rural or agricultural parcels can bring water rights or irrigation easements that appear on title. Review these with the title company during escrow.
- Market timing: Competitive markets may push for shorter escrow periods. Slower markets may allow longer timelines to accommodate financing or the sale of another property.
Risks and protections
Escrow is designed to protect all parties, but you can further reduce risk with a few proactive steps.
Avoid wire fraud
Wire fraud is a nationwide problem in real estate. Treat any last-minute change to wiring instructions as a red flag.
- Call a known phone number for the escrow company to confirm wiring details. Do not rely on email instructions alone.
- Request instructions early and keep them secure. Pick them up in person when possible.
- If you suspect fraud, contact your bank and law enforcement immediately.
Earnest money disputes
Your contract and escrow instructions control what happens if you and the seller disagree about the deposit. If there is a dispute, escrow will usually hold funds until both parties agree in writing or a court order directs disbursement. Track deadlines and keep written records to protect your position.
Title issues late in process
If a lien or defect is discovered, escrow will not close until it is cured or both sides agree on a solution. An owner’s title policy helps protect you from many covered defects that emerge after you own the home.
Financing changes near closing
If your loan is denied before funding and your financing contingency is still in place, escrow cannot proceed. Your contract will determine what happens to your earnest money.
Buyer checklist
Use this quick list to stay organized throughout escrow.
- Confirm the escrow/title company named in your contract and verify licensing.
- Deliver your earnest money on time and get a receipt.
- Order inspections right away: general home, termite, and, if applicable, well and septic.
- Review your title commitment and exceptions. Ask the title officer to explain anything unfamiliar.
- Track your appraisal and lender conditions so you stay on timeline.
- Confirm wiring instructions by phone with the escrow company using a verified number.
- Attend your final walkthrough and verify agreed repairs.
- Save copies of your Closing Disclosure and all signed documents.
Work with a trusted local team
Escrow is detailed, but it does not have to feel stressful. With clear steps, proactive communication, and careful attention to local details, you can close with confidence in Pima County. If you want hands-on guidance from offer to recording, request a Confidential Market Consultation with The Bonn Team. We coordinate closely with escrow, title, and your lender to keep every milestone on track.
FAQs
What is closing escrow in Tucson?
- It is a neutral process where an escrow or title company holds funds and documents, follows written instructions, and records your deed with Pima County to transfer ownership.
Who holds my earnest money deposit?
- The escrow or title company named in your purchase contract holds the deposit under the escrow instructions.
How long does escrow usually take here?
- Local practice is often about 30 to 45 days, but timing depends on your contract, lender, and property.
What is a mortgage escrow account?
- It is a lender-managed account that collects part of your monthly payment to cover property taxes and homeowner’s insurance on your behalf.
Will I receive a Closing Disclosure before I sign?
- Yes. If you have a mortgage, federal rules require your lender to provide the Closing Disclosure at least three business days before you consummate the loan.
Do I need an owner’s title insurance policy?
- It is not required by law, but it is recommended to protect you from covered title defects that might appear after closing.
Are there transfer taxes in Arizona?
- Arizona does not have a statewide real estate transfer tax. You will still pay applicable Pima County recording fees at closing.
How can I avoid wire fraud during closing?
- Always verify wiring instructions by calling the escrow company at a known phone number and be skeptical of any last-minute changes sent only by email.
