HUD’s Arizona Buyer Select Closing Agent Program

Effective November 17, 2013, HUD implemented a “Buyer Select” closing agent program. All Buyers whose contracts are executed on or after this date in the State of Arizona will be required to select their own escrow company. The selling agent will be required to complete an addendum providing the name and contact information of the selected escrow company. This addendum must be submitted with the sales contract package at the time of bid acceptance.

Please not, escrow fees will now be a buyer expense. HUD will pay a portion of the closing fees if the buyer includes closing costs on line 5 at the time of bid submission, and there are sufficient funds remaining to allow for this fee to be paid. If there are no closing costs included in the bid, the buyer will be required to pay all escrow and closing fees.

How does the Buyer Select Closing Agent Program Work?

The purchaser must select any state licensed escrow company upon bid acceptance. The selected escrow company must be indicated on Line 3 and Line 9 of the sales contract as well as on the Buyer Select Closing Agent Addendum. The complete, correct contract package, including the addendum, must be submitted to BLB Resources within 2 days of bid acceptance. The BLB Resources’ Sales Team will conduct their normal contract review, ensuring the Buyer Select Addendum is included and complete.

Please be advised that when the buyer has selected an escrow company, they must remain witht that company until the transaction closes. The only way for a buyer to switch escrow companies is to cancel the contract. However, please note that EMD will not be refunded if the sole cancellation reason is to switch escrow companies. Also, there may be backup bidders that may be awarded. If there a no backup bids, property will get re-listed and buyer would need to re-bid and there may be a chance the buyer would not get awarded the property again.

For more information on this new program, contact any HUD Listing Broker and ask for the new HUD Selling Agent Handbook or visit BLB

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