Homesellers Guide – Arizona by Equitable Title Agency

Equitable Title Agency | Arizona

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Homesellers Guide It’s Time For a

Approach.

The homeselling process — from choosing your

We have provided this guide as a helpful resource

listing agent and pricing your home, to preparing for

and insight into the general processes involved in

closing and handing over the keys — can be both

selling a home. The content is informational only,

challenging and exciting. Having purchased your

not intended to offer legal or financial advice, and is

home, the selling process will be familiar to you,

deemed reliable but not guaranteed. Always confer

utilizing some of the same key industry experts in

with your real estate professional, attorney and/or

their individual and important roles to assist you in

accountant for legal advice.

getting your home sold successfully.

Table of Contents Your Support Team

Homeselling Process Flow Chart

Homeselling Overview

How to Price Your Home

Your Home's Selling Points

Before Listing Your Home

Tips for Showing Your Home

Acceptable Forms of Identification

What is Escrow?

What is Title Insurance?

Home Inspections

Potential Closing Delays

Who Pays for What?

Closing Statement Charges

Wire Fraud Protection

Moving Tips

When to Expect Final Proceeds

Services Guide

Glossary

Notes

Equitable Homesellers Guide

Your Support Team Real Estate Agent

Title and Escrow Agent

Licensed agents assist buyers and sellers in locating or

Often simply referred to as the title company, title and

marketing their home, negotiating terms and guiding the

escrow agents perform a number of critical services. They

parties through the closing process. A real estate agent

will examine the property's chain of title (its history) to

may also be known as a REALTOR®, a member of the

search for encumbrances. They will then assist you with

National Board of REALTORS , and is the best person to

any necessary cure and/or fix of any defects, liens or other

guide you through the process of selling your home.

possible title issues, so that a policy of title insurance may

be issued to the buyer.

They will:

Escrow serves as a neutral third party, preparing and handling the signing of closing documents, receiving and disbursing funds and following all written instructions

Help you assess your needs and offer insight

Empower you with informative market data

and advice on the sale of your home.

and statistics.

pursuant to the terms of the contract.

Home Inspector The home inspector completes a comprehensive inspection of the entire home and provides a detailed report of its condition, including material defects of the visible and accessible structure, systems and components

Put their knowledge, experience and

of the property.

marketing network to work for you.

Appraiser

Guide you through the process of selling

An appraiser estimates the value of a property. Value is

your home, including competitive listing

based on such factors as location, amenities, structural

pricing, preparing the home for sale, the

condition and recent sales of similar, local properties.

negotiation process and helping you understand and complete the sales contract.

Introduce you to their vast network of partners and support services.

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Homeselling Process Flow Chart SELECT A REALTOR® Choose the best individual to help guide you through the process and pricing of your home

PREPARE HOME FOR SHOWING Curb appeal: clean inside and out, remove clutter

REVIEW OFFERS SUBMITTED Your REALTOR® will assist you with offers received and help you make the best decision

FORMS, DISCLOSURE, WARRANTED ITEMS & AGREEMENTS Your REALTOR® and other parties will assist you in preparing all necessary documents

MARKET PROPERTY MLS, photography, flyers, open houses and more

CONTRACT ACCEPTANCE Buyer reviews and accepts contract

ESCROW OPENED, SETTLEMENT SCHEDULED Deadline for inspections, approvals, and settlement are set

HOME INSPECTIONS AND APPRAISALS Buyer's lender orders the appraisal

NOTIFY UTILITIES Contact Ensure all all your requested utilities and repairs services have to have beendisconnected completed oror the transferred home is the to same as first new inspected. address

DOCS SIGNED/NOTARIZED, FUNDS ARE SUBMITTED Transfer Ensure all and requested other documents repairs have are recorded been completed with theor County the home Recorder, is the funding is same confirmed as first and inspected. keys are handed to new owner

FINAL WALK-THROUGH INSPECTION Buyer and/or buyer's agent will perform final inspection to ensure all necessary and requested repairs were completed

HOME IS SOLD, CONGRATULATIONS!

Equitable Homebuyers Guide

Homeselling Overview Selling your home can be a nerve-wracking endeavor, especially if it’s your first time listing and you aren’t familiar with the real estate market.

The Use of a REALTOR® Using a REALTOR® to list your property can reduce the stress that goes along with a transaction. There are a number of documents, obligations, timelines, inspections and other important items associated with the sale of your

There are always certain unchanging factors that determine

home — your REALTOR® will be there to guide you through

how quickly — and for what price — your home will sell.

each of them. With access to powerful marketing and

There are also things you can control and react positively

listing tools, your real estate professional can expose your

to, ensuring your journey goes as smoothly as possible.

home to the largest pool of potential buyers.

The Marketplace

The Listing Price

A "buyer's market" tends to favor the buyer in terms and

You never want to feel as though you are underselling

pricing. Typically in a buyer's market, homes may stay on

your home, but properly pricing your listing will have a

the market a little longer, there may be more inventory and

significant impact on how quickly it sells. Higher offers

you may have to adjust your pricing. A "seller's market"

tend to accompany a fair market value, and other agents

favors you, the seller — homes may sell faster, have

will be more likely to show your property enthusiastically if

several competitive offers and may even sell above your

they believe it is a good value for their clients.

listing price. Interest rates also affect the marketplace. A lower rate spurs buying, and rising rates may cause some buyers to wait until rates fall. Many times buyers may have qualified to purchase a home based on a lower rate and then find themselves priced out of the homebuying process as rates rise. You cannot control the marketplace, but you can control how you react to it.

Additional Terms & Conditions Not all buyers can purchase a home without any special terms. Most buyers need financing, possibly some time to sell their own home and usually have requests for you, the seller, to make some repairs. Maintaining an open mind about terms and conditions may make your property

Other Properties for Sale

more favorable than another one in your area. Helping

As soon as you make the decision to list your property, you

escrow and offering a home warranty are just some of the

will inevitably notice all of the other "For Sale" signs in your

ways you can assist your buyer. Your REALTOR® will give

area! Having a good concept of what price other properties

you advice on which terms and conditions may work to

near your home are listed at, what condition they are in

everyone's advantage.

with closing costs, agreeing to a longer or shorter close of

and how long they have been on the market can give you a competitive edge in the sale of your property.

Prepare for the Entire Process You may recall what purchasing your home was like; selling a home is similar. There may be times where you feel uncertain and overwhelmed — this is normal and part of the journey. Talk it out with your REALTOR® or someone you know who has gone through the homeselling process, as any of these individuals can help you address your feelings and questions.

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How to Price Your Home Now that your house is primed and ready for sale and you are mentally prepared, it’s time to actually list! When a property is listed at a price which reflects fair market value, the greatest number of buyers will see that value. Conversely, setting your selling price too high can have unexpected consequences. Your real estate professional will have the depth of knowledge necessary to interpret market data and help you understand the best listing strategy.

•

Properties receive the most activity within three weeks

•

The longer a house remains on the market, buyers may

of listing, so it’s vital to make sure that your listing price

view the property as defective in some manner. Agents

is at the best price from the very beginning.

often won't show their buyer homes that have been

You might think the highest price for your home is best

listed for an extended period of time.

and will show your property is valuable. However, if

•

The longer your house is listed, expenses may begin

your house is far above the current market value, it can

to accumulate, affecting your overall net gain. This is

dissuade buyers from taking your property seriously.

why it is important to initially price the home at a more market friendly rate.

So how do you set the right price for your home? Your REALTOR® can help you set a proper and fair listing price by looking at data and factors using a Comparative Market Analysis (CMA). A CMA is a survey of homes similar to yours that are currently on the market or have recently been sold, comparing similar and different features in your home to settle on a price. They can also help suggest strategies based on current trends.

Equitable Homesellers Guide

Your Home's Selling Points Below is a form to help your REALTOR® better identify and attract the best buyers for your home, and help you reach your selling goals. In addition to the basic features of your home, list what makes your home special and unique, and what you think will most attract potential buyers.

Upgrades, remodeling, additions, special qualities and characteristics:

What were the top three reasons you purchased your home?

What do you like most about the area and location of your home?

What's your goal?

Walk away with $$$

Sell my home fast

If you could chart out your ideal sale timeline, what would it be?

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Before Listing Your Home There’s nothing like a first impression, especially when it comes to buying a home. Buyers and agents will be drawn to homes that have a bright, clean and inviting presence, and if your house doesn’t impress from the front yard, they may simply move on.

Curb Appeal and Beyond Your home’s curb appeal — the elements that immediately

about getting unexpected visitors! You’ll have plenty of

make your home attractive to buyers — are very important

time to make your home tour-ready.

when it comes to homeselling, and you want to make sure your home makes the best initial impression. Basic

If you plan or need to make improvements to increase

outdoor maintenance like a well-manicured lawn, trimmed

value, make sure to analyze the cost benefits. Renovating

shrubbery and all trash out of sight will help your home

walls and flooring, updating kitchen appliances and

look fresh and clean.

adding a patio are universally desired by buyers and are much more likely to improve your chances of selling at a

If you want to sell for the highest price with minimal time on

higher price in less time. However, unique features, like a

the market, it’s vital that you make an impressive showing

swimming pool, are subject to individual taste and often

on the inside as well. You'll want your home to look

return less than the cost of completing the project.

inviting, but not too distinct. Remember, you want buyers to be able to easily picture themselves in your home, so keep personal mementos and family photos to a minimum. Stay away from strong scents – even if they’re pleasant! Potential buyers want to see a house that’s been wellloved and well-maintained. You want to emphasize to buyers what it is that makes your house their home. Even the cleanest, best-kept house needs a few adjustments to be move-in ready for a new occupant. If you put your home on the market without doing any renovations or clearing out clutter, you may find it much harder to sell. Potential buyers will gain access to your home with their REALTOR®, and will not be allowed to view the premises unattended or without scheduling first, so don’t worry © 2022 Equitable Title Agency, LLC.

Equitable Homesellers Guide

Tips for Showing Your Home When you've decided to sell your home, giving it curb appeal and some further love for showings can feel daunting. If you hope to achieve the highest selling price and the shortest amount of time on the market, you want to make certain that your home shows well. We’ve compiled this room-by-room breakdown of some of our top tips to make your home a buyer’s dream and to help point out some items that you may want to consider.

Outside:

Garage:

Kitchen:

•

Garages can very quickly become more storage space, so make sure yours is as spotless as possible.

•

Dispose of any accumulated junk and box up anything you won’t need until after your move. Make sure your garage has enough space to fit the specified number of cars so a buyer can see how large the garage is for their own use.

For many buyers, the kitchen can be a make-or-break moment, so take extra care in this room. Make sure the lighting, both natural and electric, is bright and inviting. Consider investing in attractive but neutral window dressings.

•

Keep your counters spotless. Move any knickknacks or small appliances so the buyer has a true sense of the counter space.

•

Replace or renovate badly damaged floors or walls. If there are grease or smoke stains, make sure to clean and completely remove and then repaint.

•

Organize pantry and cupboard, and remove any refrigerator magnets or decoration elsewhere

•

Keep your porch and front door tidy and inviting, since this will likely be the first place prospective buyers notice. A fresh coat of paint can help spruce up your door and porch. Make sure your doorbell is functioning properly and sounds pleasant. Keep your lawn fresh and beautiful. Make sure any animal waste is properly disposed of in your front and back yard. Clean gutters and the exteriors of your windows. Also, clean any oil leaks on your driveway and make sure it’s well-swept.

•

Make sure the garage door opener is operational, and any oil stains are cleaned and painted over.

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Putting a little extra love and care into your pre-listing home prep may award you much better results once you are ready to finally go on the market!

Bathrooms:

All Other Rooms:

•

Repair any leaks, dripping faucets; replace fixtures if needed.

•

Repair cracks, nail holes and pops.

•

Deep clean any stains in the bathtubs, toilets, sinks or showers.

Paint the walls white or another neutral color.

•

Remove or replace old shower curtains and bath mats.

•

Make sure the rugs and carpets are clean and stain-free. Consider a neutral rug color.

•

Make beds, hang clean towels, open drapes and blinds, put away dishes and empty wastebaskets.

•

Remove unnecessary furniture and knickknacks.

•

Fix doors that stick or do not lock properly.

•

Use a spray to eliminate kitchen, bathroom and pet odors.

•

Clean or empty all closets so buyers can get a sense of size and usefulness.

•

Put away any pet or children's toys or furniture.

•

Store all but the most essential furniture so your living room looks spacious.

•

Remove family photos, posters or other distracting personalized decor.

•

Clean floors and vacuum rugs.

•

Make sure all lights and bulbs are working properly; replace those that are not.

Equitable Homebuyers Guide

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Acceptable Forms of Identification State notary laws and title insurer underwriting policies define what forms of identification are acceptable and which are not, and assist in preventing fraud and forgery. Not presenting the proper types of ID can cause transaction delays. If you do not have a valid, unexpired, government-issued photo ID such as a driver's license, non-driver state identification card or a United States passport, please inform your escrow team before your closing appointment. There may be other acceptable forms or solutions available, but this is best addressed before closing.

xxx – xx – xxxx

Acceptable Forms of Identification:

Unacceptable Forms of Identification:

•

Valid, government-issued photo ID such as a driver’s license or state identification card

Any ID which does not contain a photograph and physical description

•

United States passport

•

Any ID which is past its expiration date

•

United States military ID

•

Any temporary ID

•

Valid Canadian or Mexican driver's license issued by

•

Social Security card

•

Foreign passport not stamped by US Customs and

the proper agency •

Foreign passport stamped by the US Citizenship and Immigration Services (USCIS)

Border Protection •

Foreign consulate ID card

•

Employee ID card

It is important to note that the name on your ID must match the name on your documents. If you have changed your name, or if your name will change before closing, you will be asked to provide supporting documentation. If you are at all unsure as to whether your ID will be acceptable, please contact your REALTOR® and your escrow team right away.

Equitable Homesellers Guide

What is Escrow? Escrow is a legal process in which a financial instrument or funds are held by a neutral third party (an impartial stakeholder) on behalf of two other parties that are in the process of completing a transaction. The funds and documents are held by the escrow agent until escrow receives the appropriate instructions — or until predetermined contractual obligations have been fulfilled.

Why Do I Need an Escrow? Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until all of the terms, conditions and instructions set forth have been followed. The escrow holder has the obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been met.

The Escrow Process

Contract Acceptance; Escrow Opened

Contract Terms Reviewed by Escrow

Title Examined & Report Issued

Payoff & HOA Figures Obtained

Any Title Curative Matters Addressed

Settlement Statement Completed

Documents Signed by Seller & Buyer

All Funds Deposited With Escrow

Documents Recorded & All Funds Disbursed Your Home is Sold

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What is Title Insurance?

We insure our homes against fires, floods and theft and

Because every property has a history, regardless of its age,

never think twice about it. These are all things that might

true peace of mind can be gained by paying a one-time

happen in the future, and it's of course very important to

policy premium (unlike a recurring premium for fire/liability

protect your home against these potential threats. But,

insurance). This policy is binding on the property for as

what about something that has already happened to the

long as you own it.

property that you don't know about?

Common Potential Title Issues •

•

Unknown Liens

•

Boundary/Survey Disputes

•

Mistakes in the Public Record

•

Unpaid Taxes

forgery, etc)

•

Forgeries

Undisclosed Heirs Claiming

•

Pending Legal Action Affecting

Illegal Deeds (Prior deeds used to transfer title to previous owners could have been made by a person of unsound mind, a minor, a person purported to be single but was actually married, was a

•

Ownership Interest

•

Instruments Executed Under an Expired or Fabricated Power of Attorney

•

False Impersonation of a Previous Owner

the Property

In Arizona, the homebuyer typically chooses the title company. The seller pays for the owner's title insurance policy, and the buyer pays for the loan policy, if applicable, unless otherwise stipulated in the contract.

Equitable Homebuyers Guide

Home Inspections When a home is under contract to purchase, the buyer has a period of time in which to have the home inspected.

Typical inspections may include: •

A home inspection performed by a certified home inspector

•

A wood-destroying organism inspection

•

A survey, septic, and/or well inspection (if applicable)

Some items that are typically investigated during a home inspection are: •

Appliances

•

Plumbing

•

Electrical

•

Heating and cooling systems

•

Structure, foundation, roof and attic

The buyer may ask the inspector to address concerns regarding indoor air quality, expansive soil conditions, previous fire, pests and mold. Prior to closing, the buyer will conduct another inspection, usually referred to as the final walk-through. This is where the buyer will confirm that any repairs agreed upon have been completed and that the home is in the same condition as when the offer was written.

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Potential Closing Delays When you’re close to the final sale of your home, the thought of any delays can be a nightmare — yet, are sometimes inevitable. The best defense is to be aware of what can hold up a sale, and what you can do to make it as smooth as possible.

Appraisal Issues

Pests Are Found

The appraisal is one of the most important parts of the

Finding unwelcome houseguests in your home,

selling process, and any mishaps can hold up your

especially termites, is never pleasant, but can be

closing. The appraisal price may come in lower than

particularly troublesome when you’re wishing to sell

you expected, or major repairs may be required. Make

your home. If pests are discovered during a home

sure you keep in touch with your real estate agent to

inspection, make sure you and the buyer know who is

remedy any appraisal issues as soon as possible.

responsible for pest removal, and get it done ASAP.

Errors Found on Closing Documents

Lender Needs More Documentation

Any errors found on closing documents may delay the

If the potential buyer has a complicated financial

closing as corrections will have to be made.

history, the lender may need extensive documentation before they can approve the loan and close the sale.

Lien on the Property Finding out there’s a lien on your property is a

Repairs Aren’t Completed on Time

frustrating experience. Without a clean title, your home

It is important all repairs are completed prior to

could be unsellable. A title search will reveal any liens

closing. Lenders will not close on a loan until required

or other encumbrances.

repairs are complete. Receipts for all work done are likely to be required.

The House is Uninsurable If you’ve made a major insurance claim in the past,

All Parties Are Not Available for Closing

some insurers may not approve a policy for the new

If any of the parties to the transaction are unavailable

owner. Make sure you let potential buyers know about

to sign the final closing documents, whether traveling,

your insurance history so they have ample time to find

restrictive work schedule, etc., closing could be

a policy that works for them.

delayed.

Closing Costs Disputes If either party has a disagreement with the closing costs set forth on the settlement statement, closing may be delayed while the concerns are addressed.

Equitable Homesellers Guide

Who Pays for What? Closing charges are fees that are not included in the sale price of the property. These fees are incurred by the buyer and/or the seller in the ownership transfer of the property. As with many things in real estate, there is no one set standard and items are negotiated on a case-by-case basis. We've compiled a sample here that represents common items so that you can have an idea of what to expect. Consult your local title, escrow and real estate professional for further information.

Seller Typically Pays For:

Buyer Typically Pays For:

•

Real estate commission

•

One-half of the escrow fee (according to contract)

•

One-half of the escrow fee (according to contract)

•

ALTA Lender’s title policy premiums

•

Owner’s title insurance premiums

•

Document preparation (if applicable)

•

Work orders (according to contract)

•

Tax proration (from date of acquisition)

•

Any judgments, tax liens, etc. against the seller

•

All new loan charges (except those required by lender

•

Any bonds or assessments (according to contract)

•

Recording charges to clear all documents of record

for seller to pay) •

Interim interest on new loan from date of funding to first payment date

against seller Payoff of all loans in seller’s name (or existing loan

•

Recording charges for all documents in buyer’s name

balance being assumed by buyer)

•

Homeowner’s insurance premium for first year

•

Interest accrued to lender

•

Home warranty (according to contract)

•

Reconveyance fees and any prepayment penalties

•

Inspection fees (according to contract): roofing,

•

Excise Tax (% based on county and sale price)

•

Any unpaid Homeowner Association dues

•

Home warranty (according to contract)

•

property, geological, pest, etc.

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Closing Statement Charges Appraisal Fee

The charge for the property appraisal, often paid prior to closing.

ALTA Loan Policy &

The title insurance policy and additional coverages your lender requires to protect their interest

Endorsements

in the property.

Credit Report

The charge incurred when your lender orders your credit report(s).

CPL Fee

Closing Protection Letter. A guarantee from the title insurance company to the lender for the work of the settlement agent.

Escrow Fee

Charge for title agency closing/settlement services.

Flood Certification

Charge to obtain certification from FEMA as to whether the property is located within a flood zone.

HOA

Includes fees such as "prepaid dues", "transfer" and "working capital", and is charged by the HOA to complete the transfer. Any dues which were prepaid by seller will also be prorated and charged.

HOA Proration

If the seller has already paid the HOA dues for the entire month in which closing occurs, this is a pro rata credit back to them for the portion of the month the buyer now owes.

Homeowners Insurance

The first annual premium for your new hazard/fire insurance policy.

Home Warranty

The first annual premium for your home protection plan which covers major appliances and systems, and optionally covers the roof, pool, etc.

Impounds

The initial amounts collected by your lender to establish your impound account (also called the escrow account). It is from this account your lender will pay your homeowners insurance and property taxes.

Invoices / Misc

May include the termite inspection, home inspection, or miscellaneous payments such as septic, well or solar transfers.

Loan Origination

The charge for originating the loan, calculated as a percentage of the loan amount. Also

(Points)

included here will be any amount paid to buy down the interest rate.

Prepaid Interest

This is collected by the lender to pay for the interest charges for the remainder of the month during which the loan closes escrow.

Processing Fee

A common lender charge for the work done by the loan processing department.

Recording Fees

Charged by the county recorder for adding legal documents to the public record.

Tax Service

Charged to monitor and ensure property taxes remain current. The lender is notified if taxes become delinquent.

Underwriting Fee

A common lender charge for the work done by the loan underwriting department.

Equitable Homesellers Guide

Wire Fraud Protection It is important to protect your money and identity. Fraudsters use sophisticated tactics such as phony emails or phone calls to make you think you're dealing with your lender or other authorized transaction agent. Their goal is to obtain your personal information and/or supply you with false wiring instructions.

Defend Yourself:

•

Never share your online

•

banking user ID and password

passwords and never use the

with anyone.

same password repeatedly.

Do not access your bank

Research how to create strong passwords and even use a

account or credit accounts

password manager.

from a public computer or over public Wi-Fi. •

•

you are certain require it.

in watching your accounts. •

of any change in wiring

emails from free or public

instructions.

email accounts as they carry

•

Always confirm disbursement

careful about clicking on

instructions via telephone using

embedded links.

a confirmed phone number for

Monitor your bank and credit

the institution with which you

accounts routinely, and look for unauthorized transactions. Any suspicious activity must be reported to your financial institution immediately. •

When it comes to your home closing, be very skeptical

Always be suspicious of

additional risk. Be extremely

Consider using a credit monitoring service to assist you

Only share your bank account number with professionals who

•

Always utilize secure

Utilize computer safety measures such as a firewall and virus protection.

are working. Never use the phone number supplied in a suspicious email.

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Moving Tips

Let's Make Your Move Easier: Getting ready to move is never fun, but planning ahead can save you some grief.

Pre-Packing

Strong Containers / Boxes

Go through your belongings to determine if

Use strong containers that can be tightly secured

anything can be sold or donated. Decluttering

with tape or twine. You can usually purchase these

unnecessary items will create fewer boxes to pack,

from a moving or shipping company. You may also

which will also reduce the cost for your move if you

try asking your local grocery store for boxes.

are using a moving company.

Labeling

Valuables

Make sure you clearly label each box and its

Carry all valuables with you such as jewelry,

contents. Also, indicate which room it came from

important documents, photos, computer hard

and whether it is fragile. Keep an inventory of

drives or anything else that would be difficult to

boxes as you are packing, and during the move.

replace.

That way, you can make sure all of the boxes were received, and you can quickly check to see what is in each box.

Weight

Rugs

Don't load more than 50 lbs into any one box.

Have your rugs cleaned before moving so you can

Make sure weight is evenly distributed.

move them in their wrappings for easier handling.

Padding

Change of Address

Cushion contents with packing materials or

Don't leave a business, utility company or

newspaper to prevent breakage. Towels and cloth

associate out of the loop. Be sure to complete a

napkins are great for wrapping fragile items.

change of address at USPS.com.

Equitable Homesellers Guide

When to Expect Final Proceeds Your net proceeds are the final amount you'll receive from

The final proceeds wire or check is then disbursed upon

the sale of your home at closing after all costs have been

the close of escrow, after the title company has verified

taken into consideration.

with the County Recorder that all documents have recorded and the legal transfer of title has occurred.

During closing, ownership of the property is transferred from the seller to the buyer. All funds are distributed by the escrow company and the new deed is registered in the buyer’s name.

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Services Guide Utilities Arizona Public Service (APS)

APS.com

602.371.7171 / 800.253.9405

Century Link

CenturyLink.com

866.642.0444

Cox Cable

Cox.com/Arizona

866.867.7644

Direct TV

DirecTV.com

800.531.5000

Motor Vehicle Services (MVD)

AZDOT.gov

602.255.0072

Postal Office (USPS)

USPS.com

800.275.8777

Rural Metro Fire Department

RuralMetroFire.com

480.627.2700

Salt River Project (SRP)

SRPnet.com

602.236.8888

Waste & Recycling Services

WM.com

602.268.2222

Southwest Gas

SWGas.com

877.860.6020

AT&T

ATT.com

800.288.2020

Other Services USPS Change of Address

MoversGuide.USPS.com

ADOT (Arizona Department of Transportation)

ServiceArizona.com

602.255.0072

Arizona Voters Registration

ServiceArizona.com/VoterRegistration

602.506.1511

Equitable Homebuyers Guide

Glossary 1031 Exchange

Also referred to as a nontaxable sale, a 1031 exchange is a method enabling property owners to trade an investment property for another investment property (or properties) without paying capital gains taxes on the transaction.

Appraisal

An opinion of value based upon factual analysis.

Appraisal Methods

Generally, there are three major methods — cost approach, income approach and market value (comparable) approach.

Appreciation

An increase in value of real estate.

Closing

The final settlement of real estate transaction between buyer and seller.

Condominium

A system of individual fee ownership of units combined with joint ownership of common area of the structure and land.

Conventional Loan

A mortgage securing a loan made by investors without governmental underwriting, i.e., which is not FHA insured or VA guaranteed.

Counter Offer

A rejection of an offer by a seller along with an agreement to sell the property to the potential buyer on terms differing from the original offer.

Deed

Written instrument which, when properly executed and delivered, conveys title.

Discount Points

Additional charges made by a lender at the time a loan is made. Points are measured as a percent of the loan, with each point equal to one percent.

Earnest Money Deposit

Down payment made by buyer as evidence of good faith.

Easement

Created by grant or agreement for a specific purpose, such as an electrical line by a power company, or a shared driveway. An easement is the right, privilege or interest which one party has in the land of another.

Equity

The interest or value which an owner has in real estate over and above the liens against the real property.

Escrow

The deposit of instruments and funds with instructions to a third neutral party (the escrow) to carry out the provisions of an agreement or contract.

Federal Housing

Also known as FHA; a loan which has been insured by the federal government guaranteeing

Administration Loan

its payment in case of default by the owner.

Farmer’s Home

Also known as FmHA; a loan by the federal government (similar to FHA loan) usually used for

Administration Loan

residential property in rural areas.

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Impound Account

An account held by the lender for payment of taxes, insurance or other periodic debts against real property.

Joint Tenancy

Joint ownership by two or more persons with right of survivorship; all joint tenants own equal interest and have equal rights in the property.

Lien

A form of encumbrance that usually makes a specific property the security for the payment of a debt or discharge of an obligation. For example, judgments, taxes, mortgages, deeds of trust, etc.

Marketable Title

Merchantable title, or title free and clear of objectionable liens or encumbrances.

Mortgage

An instrument recognized by law by which property secures the payment of a debt or obligation.

Mortgage Insurance:

Insurance written by an independent mortgage insurance company protecting the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage on the sale price.

Origination Fee

A fee charged by the lending institution.

Personal Property

Any property which is not real property, e.g., money, savings accounts, appliances, cars, boats, etc.

Purchase Agreement

An agreement between a buyer and seller for the purchase of real estate.

Quitclaim Deed

A deed operating as a release, e.g., a husband quitclaiming to wife.

Real Property

Land and whatever by nature or artificial annexation is a part of it.

Special Assessment

Legal charge against real estate by a public authority to pay cost of public improvements such as street lights, sidewalks, street improvements, etc.

Subdivision

A parcel of land that has been divided into smaller parts.

Term of Mortgage

The period during which a mortgage must be paid.

Trust Account

An account separate and apart from a broker's own account, and in which the broker is required by law to deposit all funds collected for clients.

VA Loan

A loan guaranteed by the Veterans Administration.

Warranty Deed

A deed used to convey real property which contains warranties of title and quiet possession, where the grantor agrees to defend the premises against the lawful claims of third persons.

Equitable Homesellers Guide

It’s Time For a e For a Approach.

Equitable Title provides a better approach to title and escrow through team support and innovative services that deliver a better experience.

Dynamic Team Processing Utilizing the combined resources and knowledge that each individual brings to your title and escrow process, you’ll never miss a step or run into a delay with our experienced, dynamic team working for you.

Mobile Signing The ultimate convenience: Our mobile notary signing service is available at the location and time of your choice.

Online Check Deposits No wiring, drop-offs, or couriers needed: With our online earnest check deposits and eCheck services, we'll securely handle your deposits and payments with our streamlined process and built-in fraud protection.

Approach.

Experience the difference with Equitable Title for your transaction. If you have any questions about our services or how the process works, please let us know — we want to be an integral part of the homeselling experience!

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Notes