5 Title Mistakes to Avoid When Buying a Home
Buying a home is one of the biggest investments you’ll ever make — and protecting that investment starts with understanding your property’s title. A home’s title is the legal proof of ownership, and any problems with it can create major headaches long after closing.
At Arizona Premier Title, we help buyers avoid costly mistakes by guiding them through every step of the title process. Here are five title mistakes you should never make when buying a home.
1. Skipping Owner’s Title Insurance
Many buyers mistakenly believe title insurance is only for the lender. While a lender’s policy protects the mortgage company, an owner’s policy protects you — the homeowner.
Without it, you could be left paying for legal battles or financial losses if a title dispute arises after you buy the home.
2. Ignoring the Title Commitment
The title commitment outlines who owns the property, what conditions must be met before issuing your title insurance, and any exceptions to coverage. Skimming or ignoring it can mean missing critical details about your future property rights. Always review it carefully and ask your title company to explain anything you don’t understand.
3. Not Verifying the Seller’s Ownership
Before you close, it’s crucial to verify that the seller is the legal owner and has the right to sell. This is a standard part of the title search, but understanding this verification gives you peace of mind and prevents future disputes.
4. Forgetting to Ask About Encumbrances
Encumbrances are claims, liens, or legal rights against the property that could limit your use of it. Examples include unpaid taxes, mechanics’ liens, or pending lawsuits. You’ll want these resolved before closing so you take ownership free and clear.
5. Overlooking Easements and Restrictions
An easement gives someone else the legal right to use part of your property — for example, a utility company accessing buried power lines. Restrictions may limit how you use the property, such as building rules in a subdivision. Knowing these in advance helps you avoid unpleasant surprises after you move in.
The Bottom Line
A clean title is essential to protecting your homeownership. By avoiding these common mistakes — and working with a trusted title company — you can ensure your purchase is secure and your ownership rights are fully protected.
At Arizona Premier Title, we specialize in thorough title searches, clear communication, and strong protection for your investment.