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Will title insurance protect my Arizona real estate purchase?


A real estate transaction involves some degree of risk. Ideally, through, thorough preparation and effective negotiations, any risks are minimized and a transaction is executed without bumps in the road. One way to prevent potential complications, such as property disputes, is through the purchasing of title insurance.

Often, Phoenix real estate buyers choose to purchase title insurance to protect themselves against possible losses that could arise in the future in the event a title defect or other property encumbrance arises. A title insurer provides protection to the purchaser of the title insurance, for a fee, against possible financial losses connected with these complications. The title insurance policies will provide protection as of the date that the insurer issues a policy.

Prior to purchasing a piece of property, a title search should be performed to ensure that the title to the property is without defects or other encumbrances and the property can be freely transferred. Such a title search offers peace of mind that a transfer will happen without complications, but it is possible that a defect or encumbrance may not appear on a title search, whether because of poorly kept records or other unexpected developments.

Title insurance can provide protection in the event there is a claim on a property owner's rightful ownership of the property. In the event an unexpected problem comes to light - such as unpaid taxes before a property owner bought the property or other errors in the record - title insurance can provide protection from financial loss, as well as pay legal costs to defend those claims that a policy covers and pay any claims that are successful against title to an owner's property.

If a person has questions as to whether he or she might need title insurance or if someone is facing a real estate dispute regarding a possible title defect and wondering if his or her title insurance policy will provide coverage, he or she may wish to seek out legal advice. This could help individuals take timely and appropriate action, protecting his or her rights and interests.


Source: insurance.az.gov, "Answers to your questions about title insurance," accessed July 31, 2015

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