If you're selling a home in Arizona, it's important to know exactly what closing costs are involved and what you can expect to pay as a seller. We sat down with Kim at First Arizona Title to break it down line by line.
Key Takeaways
- In Arizona, the seller is typically responsible for both the buying agent and listing agent broker fee, plus title and escrow costs, property taxes, and HOA-related fees.
- Most offers will include a separate document from the buyer requesting that the seller contribute toward the buyer’s agent compensation. It is very common for sellers to contribute toward this compensation, as many buyers prefer to have it incorporated into their overall offer rather than paying the amount out of pocket at closing. In many cases, if a seller counters with a lower compensation amount, the buyer may also adjust their offer price downward to account for the difference.
- Arizona custom is for the seller to pay for the buyer's Owner's Policy of title insurance, true in almost 100 percent of transactions statewide.
- The resale disclosure fee, capped by Arizona law at $400, is separate from any HOA transfer fee, and the two are commonly confused.
- Arizona is not a "table closing" state, sellers typically sign documents a few days before the actual closing date, not on it.
- Seller proceeds are typically available within 24 business hours of closing, by wire or check, whichever the seller prefers.
What Are Seller Closing Costs: The Direct Answer
As a seller in Arizona, you can expect to typically pay the buying agent and listing agent broker fee, half of the escrow fee, the buyer's Owner's Policy of title insurance, your prorated property taxes through the day of closing, and, if applicable, HOA-related fees like the resale disclosure fee and any unpaid dues.
Property Taxes: What You'll Actually Pay
On every transaction, the seller pays their property taxes current to the day of closing, handled through payments to the county and a proration between buyer and seller on the settlement statement through escrow.
Here's something worth remembering: you may have already paid some or all of those property taxes through your monthly mortgage payment. You'll still have to pay the taxes at closing, but you won't pay double. Most sellers can expect a refund from their mortgage company after closing for any overpayment sitting in their impound account, for both taxes and insurance. That check comes directly from your lender, outside of escrow, after you close.
The Owner's Title Policy, Explained
A common question sellers ask is about the Owner's Policy. In Arizona, the custom is that the seller pays for this on the buyer's behalf, a one-time premium paid through escrow that insures the buyer has clear, marketable title to the property for as long as they own it.
This policy covers things like liens and judgments. If someone came forward six months after closing and asserted a legitimate claim on the property, the buyer would submit a claim on their title policy, and the title company would pay it. That means the buyer's recourse is with the title company, not with you as the seller.
Sellers sometimes ask why they have to pay this when it protects the buyer. The honest answer is that when you bought your own home, the previous seller bought this same policy for you. It's local custom here in Arizona, and it's held true for the title professionals we work with for nearly 30 years. This is worth noting specifically because it varies state by state, if you're moving here from Washington or California, expect this to work differently than what you're used to.
What the Escrow Fee Actually Covers
As the seller, you can also expect to pay half of the escrow fee. This is the fee for taking in documents, drafting them, receiving all funds, and dispersing all funds, which includes paying off your existing mortgage, property taxes, HOA dues, and the commission, all through escrow. You end up with one net proceeds check, since the title company handles pulling all of those pieces out for you.
A title company functions as the neutral middleman in a transaction. Both the buyer and the seller carry real emotion through the process, and the title company is the one working behind the scenes, without that emotion, making sure the transaction actually crosses the finish line on schedule.
If You're Selling in an HOA
If your home is in an HOA, expect to pay the resale disclosure fee, which is capped by Arizona Revised Statutes at $400. This fee allows the HOA to send the buyer the disclosures they're legally required to provide.
It's worth reviewing the HOA addendum in your contract closely, since it states who pays the transfer fee and any capital improvement fees. That responsibility could fall to the buyer, the seller, or be split 50/50 between both. The transfer fee and the resale disclosure fee are two completely different fees, even though they're commonly confused when sellers see them listed on the settlement statement.
If you have any unpaid HOA dues from your time owning the home, those get collected and paid at closing too. And sometimes, depending on what was negotiated, a seller will also cover a home warranty for the buyer.
Keep in mind these fees can all change based upon your offer, the title company will give you a full breakdown of how these closing costs look on your home sale.
Paying Off Your Mortgage at Closing
If you still have a mortgage, you're responsible for interest up to the day the lender actually receives the payoff funds, though certain loan types do require interest through the end of that month. The title company reaches out to your mortgage company, requests the official payoff demand, and sends whatever amount is required directly to satisfy your loan.
The Big Three, and Everything Else Is Negotiated
Realistically, the fees you can count on across nearly every transaction are your commission, half the escrow fee, and the Owner's Policy. Everything beyond that gets negotiated directly in the purchase contract.
Arizona Is Not a "Table Closing" State
Here's something that surprises a lot of people, especially the roughly eight out of ten buyers and sellers relocating here from out of state. Arizona is not what's called a table closing state. You're not signing your documents on the actual closing day, you're typically signing a couple of days prior to your scheduled closing date. This is genuinely one of the biggest procedural differences between Arizona and other states, and it's worth keeping in mind as you plan your move.
What to Expect on Closing Day Itself
It's almost impossible to predict the exact time your home will officially close. It could happen any time before 5pm, since there are a lot of moving parts, waiting on the lender's wire, waiting on signatures, waiting to send everything to the county recorder. Don't plan your moving truck for 2pm on closing day.
As for proceeds, you can typically expect them within 24 business hours of closing, by wire or check, whichever you prefer. If your transaction records very late in the day, your funds may not go out until the following business day.
Signing From Out of State
If you're moving out of state, you don't have to be physically present in Arizona to sign. As long as you're with a notary, you can sign anywhere, and this typically happens a few days ahead of your actual closing, not on closing day itself, which gives you real flexibility to work around your own schedule and moving timeline. Just make sure your agent and title company know early if geography is going to be a factor, so everyone can plan around it.
The Bottom Line
There's a lot happening behind the scenes in every Arizona real estate transaction, and having an experienced real estate professional backed by a strong team of title, escrow, and lending partners genuinely matters. If you have any questions about your own specific closing costs, we're happy to walk you through it.
Frequently Asked Questions
Who pays closing costs when selling a home in Arizona?
The seller typically pays the buying agent and listing agent broker fee, half of the escrow fee, the buyer's Owner's Policy of title insurance, prorated property taxes, and any applicable HOA fees, while everything else is negotiated directly in the purchase contract.
Does the seller really have to pay for the buyer's title insurance in Arizona?
Yes, this is standard Arizona custom, true in almost 100 percent of transactions statewide, and it's meaningfully different from how other states like Washington or California handle it.
What is the HOA resale disclosure fee in Arizona?
It's a fee capped by Arizona Revised Statutes at $400 that allows the HOA to send legally required disclosures to the buyer. It's a completely separate fee from any HOA transfer fee, though the two are commonly confused.
Will I get money back if I overpaid my property taxes through my mortgage?
Likely yes. If your mortgage impound account had extra funds for taxes or insurance, your mortgage company typically sends a refund check directly to you after closing, separate from your escrow proceeds.
Is Arizona a table closing state?
No. Unlike many other states, Arizona sellers and buyers typically sign their closing documents a few days before the actual closing date, not at a table on closing day itself.
How quickly will I get my proceeds after closing?
Typically within 24 business hours, by wire or check depending on your preference. If your transaction closes very late in the day, funds may go out the following business day instead.
Can I sign my closing documents if I've already moved out of state?
Yes. As long as you're with a notary, you can sign from anywhere, and this signing typically happens a few days before your actual closing date rather than on it.
