What is Escrow?
Buying/Selling a home is the largest monetary transaction most of us will experience in our personal lives and usually involves the transfer of a large sum of money. As a buyer or seller, you want to make sure that the conditions of the sale and the money involved is handled through a neutral third party.
The escrow officer holds that money in an Escrow Account until all conditions of the sale are completed, at which time they will impartially carry out the written instructions given by your Realtor. * This process of handling the cash and enforcing the purchase agreement is called Escrow.
What is a Title Agency?
A title agency is an unbiased neutral 3rd party and the communication link to all parties in the transaction. The title agency holds all documents and money until all conditions of the sale are completed. Your main point of contact at a title agency will be your escrow officer, who directly handles your transaction.
These agencies run title searches by reviewing public record and check the condition of the title to the property, they do this to ensure the seller has legal rights to selling the property. They verify if there are any liens on the property and ensures that they are paid in full when the buyer takes ownership of the house.
They also guarantee this work with a optional Title Insurance Policy which protects you and mitigates your liability in the event a claim arises.
To sum it all up Arizona is a Title Agency State, a Title Agency is a unbiased neutral 3rd party that facilitates the transaction once a deal is struck, they handle the money thats involved with buying a home, handle the paperwork, record and document the legal transfer of ownership.