Buying in Scottsdale should feel exciting, not confusing. If the words “title insurance” leave you unsure about what you are actually getting, you are not alone. You want a clean, secure transfer of ownership and no surprises after closing. In this guide, you will learn what title insurance covers, how it works in Maricopa County, what it costs, and how to protect yourself with the right policy and endorsements. Let’s dive in.
What title insurance covers
Title insurance protects you from financial loss caused by past defects in the property’s title that were unknown at closing. Common examples include undisclosed heirs, forged documents, clerical errors, or unpaid liens. It is different from hazard or homeowners insurance because it focuses on past events that affect ownership, not future damage or liability.
For a consumer-friendly overview, review the Consumer Financial Protection Bureau’s guidance on title insurance basics through the Consumer Financial Protection Bureau. The American Land Title Association also offers helpful consumer resources on owner and lender coverage at the American Land Title Association.
Owner vs. lender policies
- Owner’s policy. Protects your ownership interest up to the purchase price. Coverage lasts as long as you or your heirs have an interest in the property.
- Lender’s policy. Most lenders require this to protect their security interest. Coverage equals the loan amount and ends when the loan is paid off.
If you are financing, you will almost always buy a lender’s policy. You should also request your own owner’s policy to protect your equity and your rights.
The Scottsdale title process and timeline
Here is what to expect in Maricopa County once your contract is accepted:
Order and search
Your escrow or title company orders a title search of public records, including deeds, liens, judgments, easements, and other encumbrances. They will use Maricopa County Recorder and Treasurer records to verify the chain of title and any amounts owed.
Title commitment
The insurer issues a title commitment that lists the proposed insureds, policy conditions, exceptions, and requirements. The requirements must be cleared before your final policy is issued.
Clearing title
The title company, often with the seller’s agent, resolves issues such as lien payoffs, judgment releases, corrected deeds, and missing signatures. Some defects may require court action or curative documents.
Surveys and inspections
If there are boundary, access, or easement questions, consider a survey. Some lenders may require one. An ALTA-style survey can identify encroachments or gaps in access, which can inform endorsements.
Closing and recording
After requirements are met, you close, funds are disbursed, and instruments are recorded at the Maricopa County Recorder. The title insurer issues the final owner’s and lender’s policies after recording.
Typical searches and commitments arrive within days. Clearing defects can add weeks depending on complexity.
Local Scottsdale issues to watch
Scottsdale and the greater Phoenix area have some recurring title themes. Knowing them can save time and stress.
- HOA and condo liens. Many communities have HOAs. Unpaid assessments can create liens that must be paid before closing. Ask for an HOA estoppel letter and review CC&Rs for any pending assessments or litigation.
- Boundary and easement matters. Irregular lot lines, desert parcels, and utility easements can lead to encroachment questions. When in doubt, order a survey and consider a survey-related endorsement.
- Unreleased liens and judgments. Mechanic’s liens from past renovations, tax liens, or court judgments can surface. The title company will need to verify payoffs and releases. For property tax status and lien procedures, consult the Maricopa County Treasurer.
- Community property and spousal signatures. Arizona is a community property state. Spousal signatures may be required to clear title, even if one spouse is not on the loan.
- Older plats or probate transfers. Older subdivisions and missing documentation can slow the process and may require curative action.
- Parcels near tribal lands. Confirm boundaries and jurisdiction when property is near tribal lands or unique jurisdictions.
Costs, who pays, and how to estimate
Title insurance is a one-time premium paid at closing. The amount depends on your purchase price and the insurer’s filed rates and rules. Other title-related costs may include escrow fees, county recording fees, notary charges, and lien payoff processing.
- Who pays. Local custom varies and is negotiated in the purchase contract. In some cases the seller pays for the owner’s policy, and the buyer pays for the lender’s policy, but customs can change. Confirm with your agent before you sign.
- County fees. Recording fees are set by the county. For current requirements and fee schedules, refer to the Maricopa County Recorder.
- Regulation. For statewide insurance oversight, visit the Arizona Department of Insurance and Financial Institutions.
Ask your title company for a written quote with itemized premiums, endorsements, and recording fees. You can also review general real estate transaction resources at the Arizona Department of Real Estate.
Endorsements worth considering
Endorsements expand coverage beyond the standard policy. In Scottsdale, these are commonly requested:
- Survey or encroachment endorsements. Helpful if you have walls, pools, or improvements near boundaries.
- Access endorsements. Confirms legal access to a public road or a recorded easement.
- PUD or condominium endorsements. Addresses planned communities and condo-specific risks.
- Mechanic’s lien endorsements. Relevant when recent work has been done on the property.
- Forgery or identity theft endorsements. Addresses the risk of fraudulent transfers.
Discuss with your title officer which endorsements fit your property and your risk tolerance.
Common exclusions and limitations
Standard policies often exclude items not shown by public records, zoning or code compliance, future assessments, or government actions that occur after the policy date. Survey issues may be excluded if you do not provide a survey or purchase a survey-related endorsement.
Your title commitment will list exceptions on Schedule B. Read them closely to understand what is not covered and what can be cleared or insured around.
Buyer checklist for a smooth closing
- Ask early which title company will be used and request the title commitment as soon as available.
- Review Schedule B exceptions and the requirements section carefully.
- Request an owner’s policy equal to the purchase price, separate from any lender policy.
- Order a survey if there are boundary, access, or encroachment concerns.
- For condos and townhomes, request an HOA estoppel letter and review CC&Rs and any pending assessments or litigation.
- Confirm payoff and release of any liens or judgments before closing.
- Consider endorsements for access, survey, or PUD scenarios.
- Keep your final title policy in your records after closing for any future claim.
If a defect appears after closing
Contact the issuing title company right away and follow their claims process. If the problem falls within policy coverage, the insurer has a duty to defend and indemnify according to the policy terms. For consumer guidance, you can reference the American Land Title Association or the Consumer Financial Protection Bureau.
Buying in Scottsdale is about confidence and clarity. With the right title protections and a careful review of your commitment and exceptions, you can close with peace of mind and enjoy your new home.
If you want a second set of eyes on your title commitment or need help deciding on endorsements, connect with Jaime Fernandez for tailored guidance and a smooth path to closing.
FAQs
What is title insurance when buying a Scottsdale home?
- Title insurance protects you from financial loss due to past defects in ownership, such as undisclosed liens or forged documents, discovered after you close.
Do I need an owner’s policy if my lender already requires one?
- Yes, a lender’s policy only protects the lender; an owner’s policy protects your equity and lasts as long as you or your heirs own the property.
How long does a title search and commitment take in Maricopa County?
- Many commitments arrive within a few days, but clearing issues can add weeks depending on the complexity of liens, judgments, or documentation.
Who typically pays for title insurance in Scottsdale transactions?
- Payment is based on local custom and the purchase contract; clarify who pays for the owner’s and lender’s policies during negotiations.
What does standard title insurance not cover?
- Standard policies generally exclude zoning or code compliance, future assessments or government actions, and many survey issues unless you add endorsements.
How do I get a reliable title insurance quote and closing fee estimate?
- Ask your title or escrow company for a written quote that includes policy premiums, endorsements, and county recording fees; for fee context see the Maricopa County Recorder.
