Arizona Real Estate Glossary

A disclosure form filed alongside most deeds at the time of recording, stating the sale price and basic facts about the transaction. County assessors use it to keep property valuations current.

ArizonaArizona requires this affidavit on most conveyances, with a defined set of exempt transfer types (such as transfers between spouses or into a trust) that do not require one.

A.R.S. §11-1133 et seq.

An independent, licensed appraiser's opinion of a property's market value, based on recent comparable sales and the home's condition and features. A lender orders one to confirm the home is worth at least what it is lending against.

A state-licensed professional who inspects a property and researches comparable sales to produce an independent opinion of value, used by lenders to confirm the loan amount is supported by the home's worth.

Short for Buyer's Inspection Notice and Seller's Response, the form used to raise inspection issues after a home inspection and record how the seller responds — repair, credit, or decline.

A real estate professional who has completed additional licensing requirements beyond a salesperson license and can operate independently or supervise other licensed agents. Every real estate office must have a designated broker responsible for its transactions.

The licensed agent representing the buyer's interests in a transaction — helping locate properties, structuring the offer, and negotiating on the buyer's behalf, distinct from the agent representing the seller.

Short for Covenants, Conditions & Restrictions — the recorded document that creates a homeowners association and sets the rules governing what owners can and can't do with their property, from exterior paint colors to short-term rentals.

ArizonaWhere a subdivision or condominium is governed by CC&Rs, Arizona law caps certain HOA transfer and disclosure fees and sets required disclosure timelines for buyers before purchase.

A.R.S. §33-1806 (planned communities); §33-1260 (condominiums)

The collection of fees and charges — lender fees, title and escrow charges, recording fees, prorated taxes, and more — due at closing beyond the purchase price itself, paid by the buyer, the seller, or split by agreement.

The final, itemized statement of loan terms and closing costs a lender must provide before a financed purchase closes, so the buyer can compare it against the earlier Loan Estimate before signing. Federal rules require it be delivered a set number of business days before the loan closes.

A framework for how a married couple owns property acquired during the marriage — treated as owned equally by both spouses regardless of whose name or income acquired it, as opposed to separate property owned individually.

ArizonaArizona is a community property state. Property acquired during marriage is presumed community property unless it fits a specific exception (such as an inheritance, a gift, or property owned before the marriage), and that presumption affects how title should be taken and how the property is treated on divorce or death.

A.R.S. Title 25 Ch. 2 (§25-211 et seq.)

The point in a financed transaction when the buyer becomes contractually obligated on the loan — the trigger federal disclosure timing rules (like the Closing Disclosure's waiting period) are measured against.

A condition written into a purchase contract that must be satisfied for the sale to move forward — commonly financing, appraisal, and inspection contingencies — and that typically gives one party a right to cancel or renegotiate if it is not met.

The recorded instrument that secures a loan against real property, held by a neutral trustee on behalf of the lender until the debt is repaid in full or the property is sold to satisfy it.

ArizonaArizona uses deeds of trust rather than traditional mortgages as its standard security instrument. A default is generally resolved through a trustee's sale rather than a judicial foreclosure lawsuit, which follows a different process and timeline than judicial states use.

A.R.S. §33-801 et seq.

A deed used when one spouse takes title to a property in their name alone, in which the other spouse formally gives up (disclaims) any interest in it — used to keep a property as one spouse's sole and separate property rather than community property.

Optional upfront fees a borrower can pay at closing to reduce the interest rate on a loan — a trade-off between a larger cost today and a lower monthly payment for the life of the loan.

The portion of the purchase price a buyer pays in cash rather than financing, expressed as a dollar amount or a percentage of the purchase price. A larger down payment generally reduces the loan amount, the monthly payment, and — below certain thresholds — the need for mortgage insurance.

A lender's calculation comparing a borrower's total monthly debt payments to their gross monthly income, used along with credit and assets to determine how much the borrower can qualify to borrow.

A good-faith deposit a buyer puts down when submitting an offer, held in escrow and applied toward the purchase at closing. It signals a serious offer and is typically at risk if the buyer backs out outside the protections of a contingency.

A neutral third party that holds funds, documents, and instructions during a transaction and only releases them once every condition both sides agreed to has been satisfied — protecting buyer and seller from each other until the deal is actually complete.

ArizonaArizona is an escrow state: real estate transactions close through a licensed escrow agent rather than the attorney-closing model some other states use, and the entities that act as escrow agents must be licensed.

A.R.S. Title 6 Ch. 7

The escrow company employee who administers a specific transaction — collecting signed documents and funds, ensuring every contract condition is met, and disbursing funds and recording documents at closing. Distinct from a buyer's or seller's agent; the escrow officer represents neither side.

Two related but different things that share a name: the transaction escrow account above holds funds only until closing and is then closed out. A mortgage escrow — sometimes called an impound account — is a separate, ongoing account a loan servicer maintains for the life of the loan to collect and pay property taxes and insurance on the borrower's behalf. When that loan is paid off, federal rules require the servicer to return any remaining balance in the account to the borrower within a fixed window — a federal RESPA requirement, not an Arizona-specific one.

A licensed inspector's visual examination of a home's structure, systems, and major components, producing a report of findings a buyer typically uses to negotiate repairs, credits, or price — or to decide whether to proceed at all.

A licensed professional who performs a home inspection and produces a written report on the condition of a property's structure, systems, and major components for a buyer's review.

An organization that governs a subdivision or condominium community under its recorded CC&Rs, collecting dues to maintain common areas and enforcing community rules on individual owners.

A legal protection that shields a portion of the equity in a person's primary residence from most general creditors, up to a statutory limit.

The window after acceptance during which a buyer can have the property inspected and raise any issues found, typically running for a set number of days set out in the purchase contract itself.

The licensed agent representing the seller — pricing the home, marketing it, fielding offers, and negotiating on the seller's behalf. Also called the seller's agent.

A standardized, early disclosure of projected interest rate, monthly payment, and closing costs that a lender must provide shortly after a borrower formally applies for a loan, so the borrower can shop and compare offers before committing.

A lender's calculation of the loan amount divided by the property's appraised value or purchase price, whichever is lower, expressed as a percentage. A lower LTV generally means a larger down payment and often better loan terms.

A shared regional database where licensed agents list homes for sale, giving cooperating brokers and their buyers access to the same real-time inventory. Metro Phoenix agents work from ARMLS, the Arizona Regional Multiple Listing Service.

A commissioned official authorized to witness the signing of documents, verify the signer's identity, and administer oaths — a step required on deeds and many closing documents before they can be recorded.

ArizonaArizona sets specific requirements for how a notary must verify a signer's identity and complete a notarial certificate. A closing can also be completed through remote online notarization rather than an in-person signing, under its own separate statute.

A.R.S. §41-251 et seq.

A prequalification is a quick, largely self-reported estimate of what a buyer might be able to borrow, based on information the buyer provides without verification. A pre-approval means a lender has actually verified income, assets, and credit and is prepared to underwrite the loan — a materially stronger signal to a seller.

Insurance a lender requires on certain conventional loans when the down payment is below a set threshold, protecting the lender — not the borrower — if the loan defaults. It can typically be removed once enough equity has built up.

An annual tax assessed by the county on real property, based on the property's assessed value, and billed and collected on a fixed statutory schedule.

ArizonaArizona property taxes are billed in two installments: the first half is due October 1 and becomes delinquent November 1; the second half is due March 1 and becomes delinquent May 1. Delinquent amounts accrue statutory interest.

A.R.S. §42-18052 (payment and delinquency calendar); §42-18053 (delinquent-tax interest)

The practice of dividing shared costs — chiefly property taxes and, where applicable, HOA dues — between buyer and seller at closing based on how much of the current period each party actually owned the property.

ArizonaBecause Arizona bills property tax on its own semiannual due dates rather than a single annual bill, tax prorations at closing are calculated against that statutory calendar rather than a calendar year.

A.R.S. §42-18052

The signed contract between buyer and seller setting out the price, terms, contingencies, and deadlines that govern the transaction — the document everything else in the closing process refers back to.

Three deed types that differ only in what the grantor promises about the title: a quit claim deed transfers whatever interest the grantor has with no promises about its validity; a warranty deed guarantees clear title against claims from any prior owner; a special warranty deed guarantees clear title only for the period the grantor personally owned the property.

ArizonaWhichever deed type is used, the legal protection it gives a buyer against a later competing claim comes from promptly recording that deed — recording establishes public notice and priority. Arizona title itself passes on delivery and acceptance of the deed, not on recording, so a delay in recording is a real notice risk even though the transfer has already occurred.

A.R.S. §33-411; §33-412 (recording priority and notice); §33-401 (delivery)

Anyone who holds a real estate license and is legally authorized to help buy, sell, or lease property on behalf of a client. Every REALTOR® is a real estate agent, but not every real estate agent is a REALTOR®.

A tax some states and localities charge on the transfer of real property, typically calculated as a percentage of the sale price and paid at closing.

ArizonaArizona's constitution bars any new real estate transfer tax imposed after 2007, with a grandfather clause for any tax already in existence on that date — and none exists here, so buyers and sellers do not pay one, unlike in many other states.

Ariz. Const. art. IX §24

A real estate agent or broker who is a member of the National Association of REALTORS® and its local and state associations, and who has agreed to abide by its Code of Ethics. REALTOR® is a membership designation, not a license type — membership is voluntary for any otherwise-licensed agent.

The act of filing a document — most commonly a deed or deed of trust — with the county recorder so it becomes part of the public record, establishing when the public was put on notice of the interest it describes.

ArizonaIn Arizona, title to real property actually passes when a deed is validly delivered to and accepted by the buyer — recording is not what transfers title. What recording does is establish public notice and priority against later claims, which is why prompt recording still matters even though the transfer itself already happened.

A.R.S. §11-461 et seq. (recorder's duties); §33-411; §33-412 (notice and priority); §33-401 (delivery)

A notarization completed over live audio-video technology instead of in person, with the signer's identity verified electronically rather than face to face.

ArizonaArizona permits remote online notarization for real estate closing documents under its own dedicated statute, separate from the general notary-commissioning rules.

A.R.S. §41-263

Short for Seller's Property Disclosure Statement, the form on which a seller discloses known material facts about a property's condition and history to a prospective buyer before the sale. It is a standard AAR (Arizona Association of REALTORS®) contract form used across the state, not a document created or required by statute.

Legal ownership of a property, along with the rights that come with it. Title is what a sale actually transfers, and what a title search and title insurance policy exist to confirm and protect.

A one-time-premium insurance policy that protects against defects in a property's title — an undisclosed lien, a forged prior deed, an heir who was never accounted for — that a title search failed to catch. An owner's policy protects the buyer; a lender's policy protects the lender and is typically required on a financed purchase.

The neutral third party who holds legal title to a property under a deed of trust on behalf of the lender, with authority to reconvey title back to the borrower once the loan is paid off, or to sell the property if the borrower defaults.

ArizonaBecause Arizona uses deeds of trust as its standard security instrument, the trustee's role — and its power to conduct a non-judicial trustee's sale on default — is defined by the same statute that governs deeds of trust generally.

A.R.S. §33-801 et seq.

The non-judicial sale process a trustee conducts to sell a property on the lender's behalf after the borrower defaults on a loan secured by a deed of trust, without going through a court foreclosure lawsuit.

ArizonaA trustee's sale is Arizona's standard default-resolution process for deed-of-trust loans, following its own statutory notice and timeline requirements that are materially different from a judicial foreclosure.

A.R.S. §33-801 et seq.

A lender's process of verifying a borrower's income, assets, credit, and the property itself against its loan guidelines before giving final approval to fund the loan.

The legal way title to a property is held — as an individual, as joint tenants, as tenants in common, in a trust, or another recognized form — which determines what happens to the property on sale, divorce, or death.

ArizonaArizona recognizes several distinct forms of vesting, including community property and community property with right of survivorship, each with real, different consequences for what happens to a share of the property when an owner dies. How title is taken should be a deliberate decision, not an afterthought at signing.

A.R.S. §33-431

A final inspection of the property, typically within a day or two of closing, to confirm it is in the agreed-upon condition and that any negotiated repairs were completed before the buyer takes possession.