Escrow & Title Resource – Frequently Asked Questions
Are you ready to make an offer on a home or vacant land in ORO Valley? Joann Bersell, Branch Manager and Senior Escrow Officer of Title Security/Pima Title, has compiled a list of frequently asked questions and answers about opening escrow and title insurance.
Sellers may purchase a home warranty plan prior to selling in order to protect against repairs needed during the listing period. The purchaser may have the option to assume the policy at the close of escrow, or the Seller may offer to purchase a home warranty policy for the Purchaser. Offering a home warranty plan can provide these benefits:
1. Increase the marketability of your home by reassuring the potential Purchaser.
2. Help sell the home faster.
3. Ward off potential disputes after the sale for repair and/or replacement of covered items.
Most home warranty plans can be paid for at the close of escrow.
A CLUE report consists of two parts; one addresses the insured’s claim history, the other the property’s claim history. How many claims an insured has made as well as what type of claims can affect their insurability. They type and number of claims made on the property affect the insurability of the residence. In determining whether or not to issue or terminate new policies, some insurers consider both the claims history of the proposed insured (home purchaser) as well as the claims history of the property itself; still others consider the claims history of the proposed insured alone. In other words, there is no standard for making the insurability determination within the industry. Nonetheless, a CLUE report may affect not only a property which interest the purchaser, but the purchaser as well depending upon the number of claims the purchaser has made.
Home purchasers have no access to the CLUE database information through their own insurance carrier because they don’t yet own the property, nor for that matter is their insurance agent able to
supply them any information on the property. A purchaser is permitted to see only that part of the report that pertains to his or her own individual claims history. The property seller alone may provide a copy of the report to a prospective purchaser and the seller may obtain a copy of the CLUE report from www.choicetrust.com for a nominal fee.
As a consequence of the impact that CLUE may have not only on the insurability of a property, but individual purchasers as well. REALTORS® and their clients should consider three things:
1. Make disclosure of the CLUE report one of the contingencies of the contract.
2. Submit your insurance application early.
3. Should your current carrier determine a property uninsurable, consider a company that makes its determination solely on the purchaser’s claim history, not that of the Property.
Title companies work to eliminate risks by performing a search of the public records, laws and court decision pertaining to the property. This is done to determine the current recorded ownership, any recorded liens or encumbrances or any other matters of record that could affect the title to the property.