Title Insurance Attorneys in Chandler, Arizona

When it comes to buying or selling a home, there are a lot of costs and fees to consider. One fee that’s often overlooked is title insurance. Title insurance protects both the buyer and the lender in case there are any issues with the title of the property.

Reach out to Arnett & Arnett, PC to discuss your title insurance coverage needs. Our title insurance attorneys can help you navigate the process of obtaining this type of insurance and protect you from potentially disastrous claims and legal issues. From our office in Chandler, Arizona, we serve property sellers and buyers throughout the state of Arizona, including Phoenix, Flagstaff, and Tucson.  

What Is Title Insurance? 

Title insurance is a type of insurance that protects the owner or lender in case there are any defects, liens, or other issues with the title of the property. It’s a one-time cost that’s paid at closing and lasts for as long as you own the property. While title insurance isn’t required by law, most lenders will require it to protect their investment in the property. 

There are two main types of title insurance policies you should know about: owner’s policies and lender’s policies. An owner’s policy protects the buyer, while a lender’s policy protects the lender. The buyer will typically purchase an owner’s policy and the lender will purchase a lender’s policy. The cost of the policies depends on the value of the property and the location. 

Before issuing title insurance, the title company will perform a title search. This involves a thorough examination of public records to ensure that there are no liens or other issues with the title. This includes past deeds, mortgages, and court judgments. The title company will also search for any easements or other encroachments on the property. 

What Title Insurance Covers 

Title insurance covers a wide range of issues that may arise with the title of the property. This includes issues like liens, encroachments, forged documents, and errors in public records. If any of these issues arise, the title insurance policy will cover the cost of defending against the claim or paying any damages. 

These issues can arise at any time after the sale, potentially posing significant financial risks for the purchaser. Title insurance policies will cover you for any future losses associated with these defects, at a fraction of the cost that would be incurred if you were forced to deal with them on your own. 

However, it is important to note that title insurance won’t protect you from anything that happens to the property after the sale is complete, such as natural disasters or other types of damage. However, it will protect you from any issues with the title itself that were not disclosed at the time of the sale. 

Title Insurance vs. Home Insurance 

One of the most common misconceptions about title insurance is that it’s the same thing as home insurance. In reality, these two types of insurance cover completely different things.  

Home insurance is designed to protect you against damage to physical property or personal belongings due to accidents, natural disasters, or theft. If, for example, a fire breaks out in your home and destroys your personal belongings, your home insurance would help cover those losses. Title insurance, on the other hand, covers issues with the title itself. 

It’s critical to understand the distinct differences between these types of insurance and get title insurance in addition to your home insurance if you are purchasing a property. 

Should You Get Title Insurance? 

Most people can benefit from getting title insurance when buying or selling a property. In fact, most mortgage lenders require that you get title insurance as a condition of the loan, so there’s a good chance you already have some form of coverage in place. However, even if it’s not required, it’s always a good idea to have title insurance to protect yourself from any potential issues down the road. 

Hidden Risks: What to Keep an Eye Out For 

Before you proceed with purchasing a home, it is essential to keep an eye out for any hidden risks that may exist with the property. These risks include false information, estate issues, past disputes, public record errors, and other issues that can impact the title:  

• False information may exist when the information on the property’s title is not accurately recorded or there is a discrepancy between the information provided by the seller and what is displayed in public records.  

• Estate issues can occur when the inheritance and succession of the property are not properly conveyed on the title.  

• Past disputes can arise from an outstanding lien, mortgage, or judgment against the property.  

• Public record errors can arise from filing errors or mistakes made by public officers recorded in land registers.  

All of these hidden risks can lead to financial loss and legal disputes if not rectified. This is where title insurance comes in. 

Understanding All Commitments 

Getting title insurance is a complex process, and it is important to understand all the legal commitments before proceeding. The process involves a detailed examination of the title history and verification of property ownership. Once the title has been cleared, the insurer will provide coverage against any title defects, liens, or encumbrances that have gone undiscovered.  

It is critical to understand what is and is not covered within your policy. Different types of title insurance policies exist, and each policy will have its own set of coverage, exclusions, and limitations. You should closely read and examine your policy, as it will impact your financial protection. 

Get the Support of an Attorney 

An attorney specialized in property transactions can serve as a key ally in navigating the title insurance process. Your attorney will possess the expertise to detect any hidden title issues, as well as spot and argue on the policy exclusions and limitations. They can also help you understand any unfamiliar terms and conditions that can arise in a policy. They offer an additional layer of discovery and protection against any financial consequences, helping you save money and avoid legal consequences.