What You Should Know
Buying a new home can be a stressful process for anyone. When the new home is in a different state or country, the potential for confusion and questions regarding the transaction process or tax implications can increase considerably.
General Info on the Arizona Real Estate Process:
Arizona is a title state. Instead of using attorneys, we use title agencies. An escrow/title company is used on every transaction. They act as a neutral third party working to benefit the entire transaction and the parties involved. Their job is to coordinate and process the entire real estate and mortgage closing procedure. Services include: document gathering, HUD-1 closing statement preparation, loan funds disbursement, escrow withholding and document recording with the appropriate government authority. All of this is done in accordance with the sales contact and the clients’ instructions. You have the right to seek personal legal counsel but it is not mandatory.
There is no transfer tax associated with a purchase or sale of Arizona real estate.
Property taxes are characteristically low. For example, in 2007, taxes were $10,116 for a 5500 sq. foot luxury home that recently sold for $2,300,000 in Ancala Country Club. Also, a 1920 sq. foot townhouse on Grayhawk’s Talon Course that sold for $630,000 had property taxes of $2,692 for 2007.
Arizona does not have a two-tier property tax system like California and Florida where new homeowners pay more in property taxes than other homeowners. A new homeowner will pay the same property tax rate in Arizona as their neighbors next door.