Arizona closings are handled by title and escrow companies, and with no transfer tax, buyers here pay less in government charges than in many states.
What is different in Arizona
- Arizona doesn’t charge a real estate transfer tax; recording fees are small, and the deed comes with an affidavit of property value.
- Buyers usually pay their lender charges, half the escrow fee and the lender’s title policy; sellers usually pay the owner’s title policy and commissions, though the contract can change that.
- Property taxes are paid in two installments a year and in arrears, so the seller credits the buyer for taxes owed up to closing.
- In HOA communities, transfer and capital contribution fees can add to the buyer’s costs.
Questions
Who pays closing costs in Arizona, buyer or seller?
Both: buyers usually pay lender charges, half of escrow and the lender’s title policy; sellers usually pay commissions, the owner’s title policy and half of escrow. The contract can shift these. See also: Mortgage loans in Arizona.
What closing costs do sellers pay in Arizona?
Usually the commission, the owner’s title policy, half the escrow fee, any HOA payoff and transfer items, and agreed buyer credits. There is no transfer tax. See also: Mortgage loans in Arizona.
How much are closing costs in Arizona?
Often 2% to 4% of the price for a buyer, lower than in states with a transfer tax. The closing costs calculator lets you enter your own figures.
Related
- Closing costs and cash to close calculator
- Property tax rates in Arizona
- Discount points vs lender credits
- Closing costs and cash to close calculator
- Mortgage payment calculator
Closing costs in other states: California, Florida, Ohio. All of Arizona: mortgage loans in Arizona.
