Escrow Agent

• To open an escrow company, one of your employers must be a licensed escrow agent. To qualify as an escrow agent, you must file a license application with the Arizona Department of Financial Institutions. The Arizona Department of Financial Institutions' official website offers free downloads of escrow agent application packages. However, you cannot file the application online because it requires notarized signatures.
  
  

Legal Requirements by Business Structure

• The legal requirements of an escrow company in Arizona vary depending on the business structure a business uses. Partnerships must provide the AZDFI with an approved partnership agreement, while limited partnerships and foreign limited partnerships must first request approval from the Secretary of State. If you are an individual agent or sole proprietor of a business, you must use your own name in the license application. Corporations, on the other hand, must first contact the Arizona State Corporation Commission. This organization will help with the application process.
  
  

Bond and Application Fee

• Escrow companies in Arizona must place a $100,000 bond with the Arizona Department of Financial Institutions. You must attach surety for this bond to the initial license application. Instead of a bond, your company can also provide a certificate of deposit. If your business does not have the resources to place this bond, you can place the bond through a surety company for a fee. At the time of publication, you must file your application forms with a $1,500 application check made to the AZDFI.
  
  

Arizona Recovery Fund

• Arizona has set an Arizona Recovery Fund for real estate escrow agents. Real estate escrow companies are one of the most widely used escrow agents in the industry. At the time of publication, you must pay three percent of your gross escrow fees every quarter towards this fund. This fund acts as an insurance for escrow agents who do not meet their obligations through dishonesty or fraud.