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Arizona · A.R.S. §§6-834, 6-843Arizona good funds: what money an escrow agent can disburse at closing

An Arizona escrow agent may disburse money from an escrow account only if deposits at least equal to the disbursements have already been made and relate directly to that transaction (A.R.S. §6-843(A)). The deposits must be in one of the listed forms: a wire transfer received by the escrow agent or its depository; a check, draft, money order or other item that has become available for withdrawal under the federal Expedited Funds Availability Act; an ACH credit the receiving institution deems available; a cashier's, certified or teller's check deposited in the escrow agent's account; a check drawn by an affiliate of a regulated depository institution on that institution; or a qualifying distributed-ledger transfer in U.S. dollars among federally insured institutions (§6-843(A)(1)–(6)). An escrow agent may disburse up to $500 per transaction, or any funds available as cash, without meeting those rules (§6-843(B)). Escrow money must be deposited promptly in a bank, savings bank or savings and loan association doing business in Arizona, kept separate from the agent's own money, never in an institution outside the United States, and isn't subject to attachment for claims against the agent (§6-834(A)–(C)). Within three business days after receiving escrow money, the agent must give each depositing buyer or seller notice of the right to earn interest on it, with any setup charge and an interest estimate, and the agent may not take interest on escrow deposits for itself (§6-834(D)–(E)).

The rules

  1. 1. Deposits first (§6-843(A))

    Disburse only against deposits already made for that transaction.

  2. 2. Accepted forms (§6-843(A))

    Wire received, available checks, ACH credits, cashier's, certified or teller's checks deposited.

  3. 3. Exception (§6-843(B))

    Up to $500 per transaction or funds available as cash.

  4. 4. Escrow accounts (§6-834(A)–(C))

    In an institution doing business in Arizona, separate, never outside the U.S.

  5. 5. Interest notice (§6-834(D))

    To each depositing buyer or seller within three business days.

What the TC can do

  • Ask escrow which forms of funds it accepts and how long a personal check takes to become available.
  • Tell the buyer early to wire funds or bring a cashier's check deposited in time for closing.
  • Confirm wiring instructions by phone with the escrow officer at a known number before the buyer sends money.
  • Keep the escrow agent's interest notice with the earnest money receipt.

Questions about Arizona good funds

Can an Arizona escrow company disburse against a personal check?

Only once the check has become available for withdrawal under the federal Expedited Funds Availability Act; wires received and cashier's, certified or teller's checks deposited in the escrow agent's account also qualify (A.R.S. §6-843(A)).

Is there a small-amount exception to Arizona's good funds rule?

Yes. An escrow agent may disburse up to $500 per transaction, or any funds available as cash, without meeting the deposit rules (A.R.S. §6-843(B)).

Related guides

Add the buyer's funds-to-close wire as a dated task on the deal in ClosingCode.

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Source: A.R.S. §§6-834 and 6-843 (azleg.gov, read October 29, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.