Everything You Need to Know About Title Insurance

Everything You Need to Know About
Title Insurance

If you’re looking at downtown
condos, you may want to become
educated on the basics of title
insurance.
Everything You Needto Know About Title Insurance

Purchase of a policy at condos
closings can save you from a
multitude of potential legal and
financial issues that problems with
the title search to your property
could cause.

What Is Title
Insurance?

Anyone purchasing condos should
have a title search performed before
closing, as more than one-third of all
title searches uncover a problem that
can and should be resolved before
purchase is completed.

After your sales contract has been
accepted, a title researcher will
examine public records to scout out
any problems with the title, a
process which involves reviewing
several years of real estate records.

Everything You Need to Know About Title
Insurance
This search is intended to make sure
the property actually belongs to the
seller, that he is free to sell it and
that it can be transferred to you at
the time of closing free and clear of
any other liens.
This search is intended to make sure
the property actually belongs to the
seller, that he is free to sell it and
that it can be transferred to you at
the time of closing free and clear of
any other liens.

However, title searches may miss
serious problems, so
homeowners should take the
step of buying an owner’s title
insurance policy.

Potential Problems
With Property Titles

Title problems range from fairly
minor to potentially disastrous.

A title search may reveal, for
example, that the previous owner
had failed to pay property taxes or
had minor repairs done and had
not paid the contractor.

It may even be found that the
seller doesn’t really own the
property, that the home is part of
a conflicting will or actually
belongs to undisclosed heirs.

Why Buy Title
Insurance?

Although a title search should
technically uncover any problems
with the title, there are cases in
which a problem is accidentally
missed or is not in the
public records.

Purchasing an owner’s policy of
title insurance will help protect
your purchase from the fallout
of these unforeseen problems.

The policy is purchased at
closing for the amount of the real
estate purchase and is in effect
for as long as you or your heirs
own the property.

What Kinds of
Issues are Covered?

Owner’s title insurance covers a broad
range of potential problems, ensuring
that your title company will stand
behind you, even covering legal defense
if necessary, if a title problem arises
after the title search is done and you
have bought your home.

Common issues include forgery,
undisclosed heirs, omissions/errors
in deeds or mistakes in examining
records during the title search.

If you’re in the market for condos,
check on how this insurance is
requested and how it is paid for in
your area, as it is
not an automatic part of the
closing process.

Title Insurance
and Refinancing

Refinancing of condos is
considered a new loan and
involves a new title search to
ensure full protection of your real
estate investment.

However, if you bought owner's title
insurance at your original closing,
the policy should still be in effect
for as long as you or your heirs own
the property.

Title Insurance
and New Homes

Even if you build a new home,
you are unlikely to be the first
owner of the undeveloped land.

There could be many prior owners,
and could possibly be liens
against the property.

Any prior builder or subcontractor
who was not paid could place a
lien, and purchasing an owner’s
title insurance policy will cover any
possible problems and associated
legal fees.

If you are looking for a condo to buy
in Tempe, Phoenix, or Scottsdale,
We Know Urban Realty will help you
find the perfect place.

Their realtors are
experts when it comes
to urban living.

Visit the site to see what's
available right now:
http://weknowurban.com/

Will Daly, Broker
We Know Urban Realty, LLC
834 E Claremont Street, No 3
Phoenix, AZ 85014
(480) 510-8755
Email: Will@WeKnowUrban.com

Everything You Need to Know About Title Insurance

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