What is Owner's Title Insurance? 

Owner's title insurance is an optional policy that protects homeowners from financial losses resulting from disputes over property ownership. It covers the homeowner for as long as they own the property and is highly recommended to avoid unforeseen legal issues.

 What is Lender's Title Insurance?

Lender's title insurance is a requirement for most lenders and protects their investment in the property. It ensures a valid lien and no other claims against the property, typically lasting for the duration of the loan.

How is Owner's Title Insurance Different from Lender's Title Insurance?

The main difference between owner's title insurance and lender's title insurance is the party they protect and the duration of coverage. Owner's title insurance protects homeowners for as long as they own the property, whereas lender's title insurance only covers the duration of the loan. Owner's title insurance is optional, while lender's title insurance is required for most lenders.

Title Insurance in the Arizona Residential Resale Real Estate Purchase Contract

In Arizona's residential resale real estate purchase contract, the seller is required to convey title to the property by warranty deed. The deed is subject to existing taxes, assessments, covenants, conditions, restrictions, rights of way, easements, and all other matters of record.

Additionally, the seller is responsible for providing the buyer with an American Land Title Association (ALTA) Homeowner's Title Insurance Policy or, if not available, a Standard Owner's Title Insurance Policy, showing title vested in the buyer. The cost of obtaining this policy will be borne by the seller.

If the buyer wishes to acquire extended coverage, they will need to pay for this additional coverage themselves. Additionally, if applicable, the buyer will need to pay for the cost of obtaining an ALTA Lender Title Insurance Policy.

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