PIONEER TITLE AZ gives REALTORS(R) and licensees tools for calculating closing costs!
When to use a 3-Day Cure Notice with the 2011 AAR Purchase Agreement
Calculating days under the 2011 AAR Purchase Agreement (calendar days)
It’s important to understand the way real estate is conducted in Arizona, especially if you come from another state which may be a lien state vs. Arizona which is a title state.
This map will tell you which states are “title theory” states and those that are “lien theory” states.
In a Title State, the lending institution holds title to the property in the name of the borrower through a Deed of Trust. In a Lien State, the deed stays with the borrower, the mortgagor, and the lender, the mortgagee places a lien on the property using the mortgage instrument. Generally, foreclosure in Title States occurs through a non-judicial proceeding, while Lien States are conducted via judicial methods; it varies with each state.
Arizona usually uses the non-judicial foreclosure, statutory, Deed of Trust instrument when doing residential real estate; but, we also have those parties who choose to use a mortgage which would carry with it the liening of the property and foreclosure would be a judicial process.
Remember that title insurance can protect you from so many possible issues that arise after closing:
From First American Title:
Q: Can you be a little more specific about the types of claims, or risks, covered by title insurance?
A: Sure. First understand there are basically three different levels of coverage: Standard coverage, extended coverage, and our most comprehensive “EAGLE Policy” coverage.
Standard coverage handles such risks as:
- Forgery and impersonation;
- Lack of competency, capacity or legal authority of a party;
- Deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner);
- Undisclosed (but recorded) prior mortgage or lien;
- Undisclosed (but recorded) easement or use restriction;
- Erroneous or inadequate legal descriptions;
- Lack of a right of access; and
- Deed not properly recorded.
An extended coverage policy may be requested to protect against such additional defects as:
- Off-record matters, such as claims for adverse possession or prescriptive easement;
- Deed to land with buildings encroaching on land of another;
- Incorrect survey;
- Silent (off-record) liens (such as mechanics’ or estate tax liens); and
- Pre-existing violations of subdivision laws, zoning ordinances or CC&R’s.
Subject to availability in your locale, First American’s EAGLE Policy covers all of the risks listed above, plus:
- Post-policy forgery;
- Forced removal of improvements due to lack of building permit (subject to deductible);
- Post-policy construction of improvements by a neighbor onto insured land; and
- Location and dimensions of insured land (survey not required).
Check around to see just what the costs are of the Owner’s Policy, the Lender’s Policy, a combination fee for both, any discount for being a “senior”, for doing multiple transactions, or for using the same title policy company that is currently insuring your property.
The costs are different.
Happy house-hunting!!
Kathy Howe
