Escrow & Title
In Arizona, the order in which closing proceeds are distributed is typically:
ACommissions first, then taxes, then seller net
BExisting liens (mortgages, judgments), taxes, closing costs, commissions, then net to seller✓ Correct
CNet to seller first, then all other expenses
DPro-rata among all claimants simultaneously
Explanation
Closing proceeds are distributed in a priority order: first to pay off existing liens (first mortgage, second mortgage, judgments), then prorated property taxes and HOA assessments, then closing costs and commissions, with the remaining balance disbursed to the seller.
Related Arizona Escrow & Title Questions
- ALTA title insurance policies in Arizona provide:
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- A special warranty deed in Arizona differs from a general warranty deed in that:
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