What Is an ALTA Settlement Statement in Arizona? (Phoenix Closings)
The January 2026 ARMLS STAT report recorded Phoenix Metro median sales price at $444,740, with average days on market at 94 days and a concession rate of approximately 56% of closings. That concession figure matters to buyers reading this: if your contract includes seller-paid closing costs or a rate buydown contribution, that credit must appear on both the ALTA and reconcile with your Closing Disclosure. If it does not show up correctly, you are leaving money on the table at the closing table.
Arizona is an escrow-state, not an attorney-closing state. That means a licensed title and escrow company — not a real estate attorney — manages the closing process, holds the earnest money, coordinates payoffs, and prepares the ALTA Settlement Statement. Your real estate agent reviews it; your lender prepares the Closing Disclosure separately; and the escrow officer reconciles the two before your signing appointment. Understanding whose document is whose is the first step to reviewing them accurately.
By the time a Phoenix buyer gets to the closing table, they have been through 30–45 days of inspections, appraisals, title searches, loan processing, and contract negotiations. The signing appointment feels like the finish line. The stack of documents in front of them — often 150 pages or more — confirms that intuition. The instinct is to sign quickly and get the keys.
The ALTA Settlement Statement is usually two to three pages embedded somewhere in that stack. It is prepared by the escrow company, not the lender. Most buyers assume their lender’s Closing Disclosure covered everything already. It did not. The CD covers the loan. The ALTA covers the full transaction. Errors in earnest money credits, property tax prorations, and negotiated seller concessions live on the ALTA, not the CD. Catching them before signing is how buyers protect the cash-to-close figure they budgeted for months.
Two Documents, One Closing: The CD and the ALTA Explained
Phoenix buyers on a financed purchase receive both documents. Understanding what each one covers — and what each one does not — prevents confusion and catches errors.
Who receives it: Buyer/borrower only
Federal requirement: Yes — TRID/CFPB rules
Delivered: At least 3 business days before closing
Covers:
- Final loan terms (rate, type, amount)
- Projected monthly payment
- Lender fees and third-party costs
- Prepaid interest and escrow impounds
- Cash to close
Who receives it: Buyer, seller, agents, lender
Federal requirement: No — industry-standard form
Delivered: 1–3 days before closing (request early)
Covers:
- Both buyer and seller columns in parallel
- Full debit/credit accounting for all parties
- Earnest money, concessions, prorations
- Title and escrow fees for both sides
- Cash to close (buyer) and net proceeds (seller)
The Buyer’s Column on the ALTA: What Each Line Means
The ALTA organizes transactions into debits (amounts you owe) and credits (amounts applied in your favor). The buyer’s column bottom line is your cash to close — the wire transfer amount you send to escrow before or on your signing date. Here is what populates that column in a typical Arizona purchase.
Credits to the Buyer
Credits reduce what the buyer must bring to closing. The most significant:
- Loan proceeds: The mortgage amount the lender is contributing. This is the largest single credit on most buyers’ ALTA columns.
- Earnest money deposit: The good-faith deposit you paid when the contract was accepted, held in escrow throughout the transaction. It is credited in full toward your closing funds.
- Seller concessions / closing cost credits: If your contract includes a seller contribution toward closing costs, a repair credit, or a rate buydown contribution, it appears here as a buyer credit. In Phoenix’s current market with ~56% of closings including concessions averaging ~$10,000, this line can be substantial.
- Lender credits: If you negotiated a higher interest rate in exchange for lender-paid closing costs, those credits appear here.
Debits to the Buyer
Debits are the amounts the buyer owes. They fall into three main categories:
| Debit Category | Line Items | Typical Arizona Range |
|---|---|---|
| Purchase Price | Contract sales price | Varies by transaction |
| Lender / Loan Charges | Origination fee, underwriting fee, discount points (if any), application fee, credit report | 0.5–1% of loan amount |
| Third-Party Services | Appraisal ($300–$500), home inspection ($350–$425 — typically paid before closing), survey if required | $650–$1,000+ |
| Title and Escrow | Lender’s title insurance (buyer pays this), escrow fee (buyer’s half ~$700–$800), title search | $1,200–$2,000 |
| Recording Fees | Maricopa County deed recording | ~$150–$297 |
| Prepaid Interest | Per-diem interest from closing date through end of month | Varies by rate and closing date |
| Escrow Impounds | Prepaid property taxes (Maricopa County — paid in arrears), homeowner’s insurance premium, mortgage insurance if applicable | 2–6 months of reserves |
| HOA Items (if applicable) | Prorated HOA dues, transfer fee (~$100/applicant), demand fee for account status | $200–$700 |
Sources: Bankrate Arizona Closing Costs (July 2025), Landmark Title Assurance Agency Phoenix, ARMLS STAT February 2026
Arizona-Specific Items That Surprise Buyers at the Table
Two Title Insurance Policies, Two Columns
This is the line item that most confuses Phoenix buyers reviewing the ALTA for the first time. There are two distinct title insurance policies in an Arizona closing:
- Owner’s title insurance: Protects the buyer against title defects that predate closing — forged deeds, undisclosed liens, errors in public records. By Arizona convention, the seller pays this premium. It appears as a debit in the seller’s column on the ALTA.
- Lender’s title insurance: Protects the lender’s interest in the property (required by virtually all mortgage lenders). The buyer pays this premium. It appears as a debit in the buyer’s column on the ALTA.
Both policies are issued at closing by the title company. The buyer is protected by the owner’s policy; the lender is protected by the lender’s policy. Cash buyers have no lender to satisfy and therefore no lender’s title insurance requirement — though purchasing owner’s title insurance independently is generally recommended even on cash deals.
Property Tax Prorations: Arizona’s In-Arrears Calendar
Arizona property taxes are assessed and paid in arrears through two annual installments: the first half due October 1, the second half due March 1. This means the seller owes taxes for the portion of the current tax year they occupied the property before closing. That amount is calculated, credited to the buyer on the ALTA, and deducted from the seller’s net proceeds.
On a $444,740 home in Maricopa County, where the effective property tax rate runs approximately 0.59%, the annual bill is roughly $2,600. A closing in March would mean the seller has used three months of the new tax year — approximately a $650 proration credit to the buyer. Verify that the proration on the ALTA is calculated from the correct start date and uses the current tax year’s assessed value.
Escrow Impound Timing and the Maricopa County Tax Calendar
If your loan requires an impound account (most conventional and all FHA/VA loans do), the lender will collect reserves for property taxes and homeowner’s insurance at closing. The escrow impound amounts on your ALTA depend on when the next tax installment is due relative to your closing date. A closing in September means the October 1 first-half installment is imminent — the lender will collect several months’ reserves to ensure funds are available. A closing in April means the March 1 installment was recently paid and the next one is months away. The escrow calculation should reflect this calendar accurately.
If the impound amount on the ALTA seems significantly larger than expected, ask the escrow officer to walk through the calculation against the Maricopa County Assessor’s current assessed value and the actual installment due dates. Errors in impound estimates are not unusual and are correctable before signing.
No Transfer Tax Line — This Is Correct
Arizona does not impose a real estate transfer tax on residential property sales. If you see a transfer tax line on your ALTA with a dollar amount, that is an error. Confirm with the escrow officer that no such charge applies. The absence of this line is a meaningful Arizona cost advantage compared to states like California (0.11%) or New York (1–2.625%), and it should show nowhere in your buyer’s column.
What the Buyer’s Cash-to-Close Number Actually Represents
The bottom of the buyer’s column on the ALTA is labeled cash to close — the precise wire amount you will send to the escrow company. This number is not the same as your down payment. It is your down payment plus all buyer-side closing costs minus all credits (loan proceeds, earnest money, concessions).
| Buyer Cash-to-Close Model | Example: $500,000 Phoenix Purchase (20% Down) |
|---|---|
| Purchase Price | $500,000 |
| Loan Proceeds (credit) | −$400,000 |
| Earnest Money (credit) | −$5,000 |
| Seller Concession (credit) | −$9,000 |
| Lender Fees (debit) | +$3,500 |
| Lender’s Title Insurance (debit) | +$900 |
| Escrow Fee Buyer Half (debit) | +$750 |
| Prepaid Interest (debit) | +$600 |
| Escrow Impounds — Taxes + Insurance (debit) | +$3,200 |
| Recording and Admin (debit) | +$250 |
| HOA Transfer (debit, if applicable) | +$300 |
| Estimated Cash to Close | ~$94,500 |
Example only. Actual figures depend on loan terms, tax calendar, and negotiated concessions. Confirm with your lender and escrow officer.
The cash-to-close figure on the ALTA must match the final cash-to-close on the Closing Disclosure. If they differ by more than a few dollars (minor rounding), there is an error somewhere that needs resolution before you wire funds.
The Buyer’s ALTA Verification Checklist Before Signing
Request the ALTA as early as possible — do not wait until the signing appointment. Most Arizona escrow companies will provide a preliminary version one to three days before closing. Use this checklist:
- Does the purchase price match the executed contract?
- Does the loan amount match your Closing Disclosure?
- Is the earnest money credit correct and reflected in full?
- If you negotiated seller concessions, are they shown at the correct amount?
- Do all lender fees on the ALTA match the Closing Disclosure line for line?
- Is the property tax proration calculated from the correct date with the current assessed value?
- If there is an HOA, are estoppel fees, transfer fees, and prorated dues present and within expected ranges?
- Is there a transfer tax line? (There should not be — Arizona charges none.)
- Does the owner’s title insurance premium appear in the seller’s column, not the buyer’s?
- Does the cash-to-close figure on the ALTA match the Closing Disclosure?
- Have you verified the wire instructions by phone independently?
Frequently Asked Questions
Buying a Home in the Phoenix Metro West Valley?
The Ron and Jill Group guides buyers across Goodyear, Peoria, Buckeye, Surprise, Litchfield Park, Anthem, and Glendale through every document in the closing stack — so you understand what you signed, what each line means, and what to push back on before funds are wired. Schedule a consultation below.
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