What is title insurance and how does it work.
Here in Arizona in the typical home transaction, the seller usually pays for an owner’s title insurance policy with the buyer as the named insured.The amount insured is the sales price of the home.The buyer if they are financing pays for a title insurance policy with the mortgage company, and the mortgage company is the name insured, the amount is generally the amount of the loan.
What does Title insurance protect you from as the homeowner:
1. Forgery and impersonation;
2. Lack of competency, capacity or legal authority of a party;
3. Deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner);
4. Undisclosed (but recorded) prior mortgage or lien;
5. Undisclosed (but recorded) easement or use restriction;
6. Erroneous or inadequate legal descriptions;
7. Lack of a right of access; and Deed not properly recorded.
8. An extended coverage policy may be requested to protect against such additional defects as:
9. Off-record matters, such as claims for adverse possession or prescriptive easement;
10. Deed to land with buildings encroaching on land of another; Incorrect survey;
11. Silent (off-record) liens (such as mechanics’ or estate tax liens); and
12. Pre-existing violations of subdivision laws, zoning ordinances or CC&R’s.
13. Post-policy forgery;
14. Forced removal of improvements due to lack of building permit (subject to deductible);
15. Post-policy construction of improvements by a neighbor onto insured land; and
Location and dimensions of insured land (survey not required).
Work with a local expert, I live in Fountain Hills and hve been helping buyers and sellers navigate the real estate process since 2004. Contact me anytime via email or call/text me at 480 888 6708.
