Arizona Title Insurance

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Arizona title insurance is one of those necessary things that seem to just be an extra cost when purchasing real estate. Most people don't investigate their title company, they don't shop around for fees, and it ends up just being another piece of the puzzle when buying real estate.

Honestly though, title insurance is equally as important as finding a home that you will enjoy, and obtaining a mortgage. Hopefully you never have to use your Arizona title insurance policy, but if there is a title defect you will be glad you have one.

What does an Arizona Title Insurance Policy do?

Here are some examples of what an Arizona title insurance policy will protect you from.

• The policy protects you from someone falsely claiming to be the true owner of the property.
• Fraud
• The policy protects you from mistakes in recording legal documents.
• Sale of property by minors, people of unsound mind, one person of a married couple trying to sell the property without spousal consent.
• Liens on the property because of unpaid taxes by the previous owner, lawsuit judgments against the seller, and unpaid mortgages.
• Another example would be someone willing property to their heirs. Imagine the that someone wills the property at 123 Main Street to their son. If the owner had sold you the property before they passed away you don't want the son making a claim for the property.
• Discrepancies in the survey of the property.This would apply if your property line was recorded improperly. Worst case scenario would be if you added an access road, guest home, wall, or a shed and your neighbor made a claim that the improvement was on their property.

How does Title Insurance Protect You?

If any of the things listed above arise, the Arizona title insurance policy that you purchased at the time you bought the property will either pay for the legal defense associated with any of the claims above or reimburse you for any loss incurred.

How to Take Title

This is one of the curve balls that a lot of people get hit with when they are at the closing for their new home or property. You have 5 ways of taking title in Arizona as individuals, and a few ways of taking title as a company.

For Individuals

• Community Property
• Community Property with the Right of Survivorship
• Joint Tenancy
• Tenants In Common (also called Tenancy in Common)
• Sole and Separate (We don't need a whole page for this. It means one person owns the property and they can do whatever they want with it.)

For Companies

• Corporation
• Partnership
• Limited Liability Company
• Trust

I don't think we need to go into the methods companies take title much. If you are taking title as a company then you are investing and you shouldn't need to read up about ways to take title on our website. Visit our Investors section instead.

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It really is crucial that you understand the Arizona title process. If you feel like you have it done, then return to our Peoria AZ real estate home page and continue researching your next Arizona home purchase.