The contracting parties deposit funds or documents with the escrow holder, for delivery to the respective parties upon performance of all conditions of the agreement. Most contracts provide that the buyer may, at his own expense, have the house inspected by professionals. These inspections may reveal defects which were not evident to the buyer, and which were not disclosed in the seller's disclosure statement. Depending upon the terms of the Deposit Receipt, the buyer may request the seller to either fix the defect, or provide funds so that the buyer can correct the defect after close of escrow. Your agent can assist you in choosing competent inspectors and will arrange their appointments and be present while the inspections are being conducted.
Some inspections become mandatory by the lending company.
Most lending companies require, at least, a termite and a roof inspection before they will loan on the property. In Arizona the title of the property is searched by a title company and a preliminary report is issued on the condition of the title, for the buyer's approval. The report would include such information as present ownership, legal description of the property, any existing liens or unpaid taxes, any easements, and other covenants, conditions, or restrictions. A policy of title insurance will usually be issued at close of escrow. A title insurance policy insures the buyer's interest in his purchase, and the priority and validity of any loan.