Escrow Agents - DFI
Escrow Agents - DFI
Escrow Agents

This License is required of any person carrying on escrow transactions wherein escrow property is delivered to a person not otherwise having any right, title,or interest in connection with the sale, transfer, encumbrance, or lease of real or personal property to be delivered or redelivered upon the contingent happening or non-happening of a specific event or prescribed act.

Who is exempt from this License?  Please review A.R.S. § 6-811

Inquiries concerning the preparation and filing of License and renewal applications with the Department should be directed to the Licensing Division at 602-771-2800 or e-mail at [email protected].  

License Renewal Information

Process for renewing the following license types:
- Escrow Agents 
(due September 30)

  • You must first open the license renewal report (click here).  The report provides the name, business/license address and mailing address for each license, making it easy to see all the information in one place. Carefully follow the instructions on page 1 to locate information about, and to renew, the licenses for which you are responsible.  
  • When using the E-LICENSING portal (https://elicense.az.gov/ARDC_HomePage) to renew the parent license, use the Google Chrome web browser if possible.  Other web browsers may cause problems.
  • For a license that has one or more branch licenses, you MUST mail your portion of the LICENSE RENEWAL REPORT (which we refer to as "Your Report") with a check or money order to pay for the branch license renewal(s).  We are sorry for the inconvenience of having to mail checks.  Please address the envelope to AZDFI BRANCH RENEWALS, 100 N 15th Ave., # 261, Phoenix, AZ 85007-2630.
  • Please allow up to three weeks for your license renewal(s) to be processed.  Check your license record to make sure that the licenses that you wish to continue have been renewed.
Forms and Fees

Application Fees and Forms for Escrow Agents
Arizona Revised Statues §6-126 et seq.

The following nonrefundable fees are payable to the department with the filing of the following applications:

Application Fees and Forms for Escrow Agents
DESCRIPTION FEES FORMS
New Application 
 

$1,000.00 + License Fee (based upon submission date):

Jan, Feb, Mar: $750.00
April, May, June: $500.00
July, Aug, Sept: $1,250.00*
Oct, Nov, Dec: $1,000.00

Fees are nonrefundable.
*Fee includes the following year renewal fee.
Branch Office Application
 
$500.00 + License Fee (based upon submission date):

Jan, Feb, Mar: $187.50
April, May, June: $125.00
July, Aug, Sept: $312.50*
Oct, Nov, Dec: $250.00

Fees are nonrefundable.
*Fee includes the following year renewal fee.

License Renewal

License Year: 10/01 - 09/30
Renewal Due: 08/01 - 09/30: Without Penalty
10/01 - 10/31: With Penalty ($25/day)

$1,000.00 HO
$250.00 each branch

Fees are nonrefundable.
Address Change No Fee
Name Change
 
$250.00
Change of Control/Ownership change (“COC”) No Fee
Officer Change No Fee
License Surrender No Fee
Duplicate License
 
No Fee
Required Reports
Required Reports
DESCRIPTION FORMS
Escrow Agent Semiannual Financial and Escrow Report 
A.R.S. § 6-832(B)
Due on or before August 15  and February 14  respectively

Annual Audit Report:

A.R.S. § 6-832(A)

Due within 120 days after the end of the licensees fiscal year

The records of each escrow agent shall be audited at least once each fiscal year by a certified public accountant. The audit shall include an audit of the escrow, account servicing and subdivision trust activities of the escrow agent and shall follow generally accepted accounting principles. The audit requirement may be satisfied by filing a copy of the audit report, which is prepared by a certified public accountant, of the parent of the escrow agent including an audit of the escrow, account servicing and subdivision trust activities of the escrow agent.

A.R.S. § 6-832(A)

 

Escrow Rate Filing
Laws, Rules, Substantive Policy Statements & Regulatory Alerts

Chapter 7           ESCROW AGENTS 

Article 1       Administration

6-801           Definitions

6-802           Acknowledgment of report of examination; penalty

  

Article 2      Licensing

6-811           Exemptions

6-812           Foreign corporations

6-813           License of agent; nontransferable; posting

6-814           Procedure for licensing; surety bond

6-815           Renewal of license

6-816           Fees

6-817           Refusal to license; suspension; revocation

  

Article 3      Regulations

6-831           Records

6-832           Annual audit; report

6-833           Seizure of property of impaired escrow agent

6-833.01     Priority of distribution during receivership

6-834           Deposit of monies; definition

6-835           Limit of legal action

6-836           Commissions; other considerations prohibited

6-837           Duty of escrow agent to produce escrow records for inspection; violation; classification

6-838           Surrender of license

6-839           Continuing jurisdiction

6-840           Prohibitions; definitions

6-841           Internal control structure; definition

6-841.01      Fiduciary duty; notice of returned check

6-841.02     Liability of title insurer; closing protection letter; definition

6-841.03     Notice of uninsured monies; rules

6-843           Disbursements; applicability

  

Article 4      Escrow Rates

6-846           Making of escrow rates

6-846.01      Filing of escrow rates

6-846.02     Justification for escrow rates

6-846.03     Disapproval of escrow filings

6-846.04     Deviations in escrow rates; civil penalty

 

 

Arizona Administrative Code Title 20 
Section
R20-4-701. Change in Location of Business
R20-4-702. Account Practices and Records
R20-4-703. Preservation of Records
R20-4-704. Subsidiary Account Records
R20-4-707. Payment to the All Other Escrow Agents Account of the Arizona Escrow Guaranty Fund
R20-4-708. Financial Condition and Resources

Substantive Policy Statements 
ARTICLE 3. ESCROW AGENTS
SEMI-ANNUAL REPORT EA-1 
ANTI-INDUCEMENT STATUTE EA-2
FUNDS DISBURSEMENT STATUTE  EA-3
ARTICLE 1. GENERAL ADMINISTRATION
APPLICATIONS GE-1 
CREDIT REPORTS/ARREST RECORDS  GE-3

Regulatory Alerts

Escrow Agent

Regulatory Alert EA-12-01

Regulatory Alert EA-06-01

Examinations

It is the policy of AZDFI to select the most effective and efficient methods of conducting examinations so that significant risks affecting safety and soundness, as well as substantive statutory compliance, can be identified and, if necessary, appropriate supervisory action taken.  Judgment must be utilized to ensure that necessary procedures are performed and ineffective activities are avoided.

The examination fee in accordance with A.R.S. 6-125 is not more than sixty-five dollars per hour for each examiner.  The assessment late penalty is fifty dollars for each day after the thirty day period the enterprise fails to remit the assessment not to exceed the examination assessment amount.

Pursuant to A.R.S. §6-122(B)(5) examination frequency is the accounts held in trust by each escrow agent at least once in every two year period in accordance with A.R.S § 6-122(5) and examine or cause to be examined each escrow agent at least once in every four year period or more frequently if the superintendent considers it necessary.

For questions concerning examination of your company or license, please contact the Financial Enterprise Division at 602-771-2800 or e-mail to [email protected]

ARS § 41-1030(G) requires most Arizona government agencies to prominently print the provisions of ARS § 41-1030(B), (D), (E) and (F) on all license applications.  The following is the language in ARS § 41-1030(B), (D), (E) and (F):

B. An agency shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specifically authorized by statute, rule or state tribal gaming compact. A general grant of authority in statute does not constitute a basis for imposing a licensing requirement or condition unless a rule is made pursuant to that general grant of authority that specifically authorizes the requirement or condition.

D. This section may be enforced in a private civil action and relief may be awarded against the state.  The court may award reasonable attorney fees, damages and all fees associated with the license application to a party that prevails in an action against the state for a violation of this section.

E. A state employee may not intentionally or knowingly violate this section.  A violation of this section is cause for disciplinary action or dismissal pursuant to the agency’s adopted personnel policy.

F. This section does not abrogate the immunity provided by section 12-820.01 or 12-820.02.

Escrow Agents - DFI