Page 14 - The Panozzo Team - Buyers Guide EBook

ARIZONA HOME BUYER’S GUIDE

v What is Title Insurance and Why is it Needed?

What is Title Insurance? What Title Insurance Protects against?
Your lender must insure that the quality of the Here are just a few of the most common hidden
title to the property you are about to buy, and risks that can cause a loss of Title or create an
which you will pledge as security for the loan, is encumbrance on Title:

satisfactory. The lender does this by obtaining a
• False impersonation of the true owner of
lender’s policy of title insurance, often referred to the property
as the ALTA policy.
• Forged deeds, releases of wills

The lender’s policy protects the lender against • Undisclosed or missing heirs
loss due to unknown Title defects at the time
• Mistakes in recording legal documents
of the sale and in the future. This policy only
protects the lender’s interest. It does not protect • Deeds by persons of unsound mind

you. That’s why you need an Owner’s Policy, • Deeds by minors
which will be issued at the same time as the
• Deeds by persons supposedly single, but
lender’s policy for a one-time fee.
in fact married

How can there be a Title defect if the Title has • Liens for unpaid inheritance, income of
been searched and a loan policy issued? gift taxes
Title insurance is issued after a careful examination • Fraud
of copies of the public records. Even the most

thorough search cannot absolutely assure that no What protection does Title Insurance provide
Title hazards are present, despite the knowledge against defects and hidden risks?
and experience of professional Title examiners. Title insurance will pay for defending against

In addition to matters shown by public records, lawsuits attacking your Title as insured, and will
other Title problems may exist that cannot be clear up Title problems or pay the losses. By
disclosed in a search. combining expertise in risk elimination at the time

of issuing a policy, and protection against hidden
risks as long as the policy remains in effect, your
Title insurance protects against title loss.

602.667.1000
...Where Experience equals Excellence
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