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                                        TITLE INSURANCE

                     1/3                     conveys the rights of ownership

                                             to the property.
                 of all transactions
                 reveal a title or           WHAT IS TITLE
                  public record              INSURANCE?
                                             Title insurance  policies protect
                                             Buyers     and    lenders    from
        WHAT IS A TITLE?                     financial  loss  against  possible
                                             issues or defects in the title.  A
        The  title  gives  the  holder  the   title  professional  searches  the
        right  to possess,  occupy, use,     public record (property records,
        control,  enjoy,  and  dispose  of   tax  records, and court  records)
        the land. In other words, the title  to establish legal ownership of
                                             the property being sold, reports
                                             and  determines a  cure  for any
                                             title  defect,  accounts  for  and
                                             insures  the  entire  transaction
                                             against fraud or defect, whether
                                             it  is known or unknown. If a
                                             claim arises, title insurance may
                                             also cover the  cost  of defense
                                             against the claim.                                  Grand Canyon, Arizona
                                             An  owner’s  policy protects  the              Desha Jackson (Tucson River)
                                             Buyer, and their heirs, for as long   HOW MUCH DOES
                                             as they own the home.                IT COST AND HOW
                                             A  lender’s  policy  protects  only   OFTEN DO I HAVE TO
                                             the lender’s financial interest in   PAY FOR IT?
                                             the property.
                                                                                  There is a one time premium paid
                                             WHO PAYS FOR TITLE                   at the close of escrow, and the
                                             INSURANCE?                           coverage extends for as long as
                                                                                  the Buyer and their heirs hold an
                                             Typically,  the Seller pays for      interest in  the property. Policy
                                             owner’s title insurance as a way     costs can vary considerably. The
                                             to prove to the Buyer that they      cost is based on the sales price
                                             are making  a sound  purchase        of the property for an owner’s
                                             with  a  clear  title.  The  Buyer   policy and the loan amount
                                             typically  pays  for  the cost of    for a lender’s policy.  Talk to
                                             the  lender’s policy for similar     your  escrow  officer  for  a  more
                                             reasons.                             detailed estimate.
        Skyanne Dinnigan (High Street)

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