In every real estate transaction, the matter of title insurance arises. A policy of title insurance is issued to a buyer and/or a lender to guarantee to the insured party or parties, “Free and Clear” title to the property being insured, from the beginning of time until the date and time the buyer acquires title to the property, or in the case of a lender’s policy until the date and time the lender’s loan document is recorded against the property. “Free and Clear” is defined as there being no loans, liens, encumbrances, back taxes, easements or covenants, conditions or restrictions against the property that were not disclosed on Schedule ‘B’ of the commitment for title insurance issued by the insuring company. The policy is issued for a one-time fee and will remain in effect as long as you or your heirs retain an interest in the property. This protects the buyer’s or the lender’s investment in real estate, including their legal defense against any claim or claimant. If a claim is valid, the title insurer will either resolve the title problem or pay the insured’s losses.
Why you’re At Risk
There are many title issues that can arise to cause the loss of your property or your mortgage investment. Title issues not disclosed by a most careful search of the public records, called hidden risks, are the most dangerous. Because of them, your title may be worthless or have a diminished value. Here are some title issues that can occur. You may not discover them when you buy real estate, but months or years later they can result in the loss of your property or an expensive lawsuit.
Deeds by foreign parties | Mistakes in recording legal documents |
Deeds by minors | Surviving children omitted from will |
Deeds by persons of unsound mind | Administration of estate of persons absent butnot deceased |
Deeds to or from defunct corporations | Birth or adoption of children after date of will |
Defective acknowledgements (notary) | Claims of creditors against property sold by heirs or devises |
Discovery of will of apparent intestate | Deed of community property recited to be separate property |
Duress in execution of instruments | Deeds by persons supposedly single, but secretly married |
Erroneous reports furnished by tax officials | Deeds delivered after death of grantor/grantee, without consent of grantor |
False impersonation of the true owner of the land | Deeds in lieu of foreclosure given under duress |
Forged deeds, releases, etc. | Marital rights of spouse purportedly, but not legally, divorced |
Misrepresentation of wills | Ultra vires deed given under false corporate resolution |
Contact: Lawyers Title Of Arizona for All Your Title Needs
Office: 623-979-6060 www.lawyerstitlearizona.com
The Shankman Team
Realizing Your Dream is Our Mission
28451 N. Vistancia Blvd Suite D-103 Peoria AZ 85383
623-444-7939