Escrow & Title

In Arizona, a 'sub-escrow' or 'sub-trust' at closing is typically used when:

AThe seller wants to delay the closing
BThe buyer's lender requires funds to be held specifically for payoff of existing liens before the deed is recorded✓ Correct
CThe buyer wants to take early possession
DThe seller cannot attend the signing

Explanation

A sub-escrow (or sub-trust) may be used by a title/escrow company on behalf of the lender to ensure that existing liens are paid off and title is clear before the new lender's deed of trust is recorded in first position.

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