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Douglas Trudeau , Assoc. Broker
Prudential Foothills Real Estate
64 N. Harrison Road, Suite 160
Tucson , AZ 85748
Mobile: 520-954-2209
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Tucson Real Estate - Home Buying 103

Home Buying 103 - Title Company

The third pillar in home buying is the Title Company. There are numerous good title companies in Tucson. Their role is to compile everything the seller, buyer, and lender instruct into a meaningful result. Title Companies also check county records to find recorded liens and other recorded documents that will impact on the sale and purchase of a property.

There are different ways to take title to a property.

Tenancy In Severalty (Sole and Separate Ownership) - Primarily for single person ownership.
Joint Tenancy (Joint Tenancy with right of survivorship) - For couples or co-ownership. One of the most common methods of ownership.
Community Property - Works for married couples, but, does not guarantee right of survivorship.
Community Property with right of survivorship - Primarily for couples who are concerned about taxes, capital gain, etc. Similar to Joint Tenancy with right of survivorship. However, each has its own tax implication and requires expert advise from a tax accountant or lawyer.
Tenancy In Common - Co-ownership by two more persons with no right of survivorship.
Real Estate Syndication (General Partnership, Limited Partnership, or Limited Liability) - Pooling of resources for an investment.

Knowing which deed or way to take title fits your needs may take some research. You may even need to talk to a lawyer or tax accountant to see which one meets your needs as far as taxes and other considerations.

Different Owners Policies. Here is a sample of four policies, each with different protection. Each with a different expense. Knowing which policy you receive can make a significant difference in the protection you receive. Asking the title company for the right coverage for your needs is something that most home buyers miss.

Standard Coverage

Someone else owns a recorded interest in your title.
A document is not properly signed, sealed, acknowledges or delivered.
Forgery, fraud, duress, incompetency, incapacity or impersonation.
Defective recording of any document.
Unmarketability of title.
Lack of a right of access to and from the land.

Extended Coverage

Someone else owns a recorded interest in your title.

A document is not properly signed, sealed, acknowledges or delivered.

Forgery, fraud, duress, incompetency, incapacity or impersonation.

Defective recording of any document.

Unmarketability of title.

Lack of a right of access to and from the land.

Mechanic’s lien protection for work or materials done prior to the policy date except where the insured has agreed to the same.

Unrecorded liens by the homeowners association.

Others have the right arising out of leases, contracts, or options.

Someone else has an easement on your land.

Residential Coverage

Someone else owns a recorded interest in your title.

A document is not properly signed, sealed, acknowledges or delivered.

Forgery, fraud, duress, incompetency, incapacity or impersonation.

Defective recording of any document.

Unmarketability of title.

Lack of a right of access to and from the land.

Mechanic’s lien protection for work or materials done prior to the policy date except where the insured has agreed to the same.

Unrecorded liens by the homeowners association.

Others have the right arising out of leases, contracts, or options.

Someone else has an easement on your land.

Forced removal of the residential structure because it extends onto other land or on any easements or it violates a restriction shown in Schedule B, or on an existing zoning law.

Plain understandable policy language.

Automatic inflation coverage increasing policy amount up to 150%.

Homeowners Coverage

Someone else owns a recorded interest in your title.
A document is not properly signed, sealed, acknowledges or delivered.
Forgery, fraud, duress, incompetency, incapacity or impersonation.
Defective recording of any document.
Unmarketability of title.
Lack of a right of access to and from the land.
Mechanic’s lien protection for work or materials done prior to the policy date except where the insured has agreed to the same.
Unrecorded liens by the homeowners association.
Others have the right arising out of leases, contracts, or options.
Someone else has an easement on your land.
Forced removal of the residential structure because it extends onto other land or on any easements or it violates a restriction shown in Schedule B, or on an existing zoning law.
Plain understandable policy language.
Automatic inflation coverage increasing policy amount up to 150%.
Building permit zoning violations by prior owners.
Subdivision Map Act Coverage.
Restrictive covenant violations by prior owners.
Enhanced access coverage.
Map inconsistency protection.
Mineral extraction structure damage.
Post policy encroachment.
Post policy forgery.
Living trust coverage.
Forced removal of existing structures including boundary walls and fences due to encroachment onto adjoining land.
Supplemental real estate taxes by a taxing authority for taxes not previously assessed prior to date of policy because of sanctification or a change in ownership occurring before policy date.

Knowing which policy you qualify for and will provide maximum protection is important. Paying a little more for an Owners Policy can save you a lot in the long run.

The title company acts as a coordinator for all parties involved; i.e., Buyer, Seller, Lender, Real Estate Companies, and other service providers. They compile all the instructions of each entity, research recorded information pertaining to the property for disclosure to the Buyer and Seller, insure that local, State, and Federal Laws are being followed, and put it all into a neat package for the Buyer and Seller.

Now You have the three pillars necessary for home buying; i.e.,

Method of funding – Whether using a lender or paying cash the first step is to make sure what you can afford and what you are searching for match.
Choosing your REALTOR® – Making sure you are working with the person who understands your needs and who you feel comfortable working with. Like me.
Understanding Title – As a Buyer you have the right to choose the Title Company with whom you will be working with. Most Buyers trust their REALTOR® to guide them in this direction. Know how to take title and the type of coverage you want are equally important.

In Home Buying 104 your will learn about home searching and preparing for the purchase contract. I will walk you through the process for searching for a home and how to work with your REALTOR® in preparing a real estate purchase contract in Tucson, Arizona. This method may vary in other states and regions.

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This entry was posted on Sunday, June 17th, 2007 at 9:52 am and is filed under Tucson Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.