The Arizona Sellers' Guide

A GE NCY OF ARIZ ONA

The Way We Work

Your Real Estate Dream Team

Preparing To Sell Your Home

Tips For Staging Your Home

The Seller Roadmap

What Is Title Insurance

Commit To Knowing Your Title Commitment

Understanding the Closing Process

Moving

About Us | First Integrity Title Agency of Arizona

First Integrity Title got its start 20 years ago and has consistently grown its market share to become a top-tier national title company. We believe first and foremost, in focusing on the needs and aspirations of our clients. This client first focus permeates in everything we do from our service levels, product quality, pricing and insuring your transaction. Our primary goal is to deliver exceptional customer service from start to finish so at the closing table we have exceeded our clients’ expectations. We are devoted to exemplifying strength, service and stability.

On Staff Attorneys

With our on-staff attorneys, we are able to provide you with quick and reliable responses to complex title and escrow issues.

Underwriters

We are proudly underwritten by multiple underwriters with strong financial ratings. This allows us to offer the most comprehensive protection and competitive pricing with reissue rate opportunities.

Pricing

Not only do we provide competitive title rates, but also competitive escrow fees. Ask your account manager for our rate sheet to see more details.

Financially Strong

First Integrity Title has unparalleled financial strength to guarantee that secure transactions take place. We go above and beyond to provide our clients with peace of mind by providing the Fidelityfollowing:bond policy - $3,000,000 Errors and omissions insurance policy - $5,000,000

Data breach policy - $1,000,000

Social engineering/wire fraud policy - $500,000

Dual authorization on all wire transactions

Daily reconciliation of escrow accounts

Confirmation procedures on all wires to ensure proper payoffs

Financially secure underwriters with superior ratings

Routine and successful audits by all underwriters

YOUR REAL ESTATE DREAM TEAM

Throughout the process of selling your home, you will have a team of professionals working behind the scenes to ensure a smooth real estate transaction. Below is a list of these key professionals.

Real Estate Agent

A licensed professional who represents parties in the transfer of real property.

Listing Agent

The Real Estate Agent who represents the seller and markets the property by placing it on the MLS (Multiple Listing Service).

Selling Agent (Buyer’s Agent)

The Real Estate Agent who represents the buyer and searches for available properties within the MLS (Multiple Listing Service).

Mortgage Lender

If you are obtaining financing in order to purchase a home, the mortgage lender will work with you to get you pre-approved and find the best loan and interest rate based on your credit score, employment and debt to income ratio.

Multiple Listing Services (MLS)

An online database of available properties listed for sale accessible only to licensed Real Estate Agents.

Title Company

A neutral, third party that performs a title search and examination of the real property and facilitates the closing and escrow process.

Escrow Officer

Your Escrow Officer will facilitate the closing process by preparing documents, work with the Mortgage Lender and Real Estate Agents, disburse funds and more.

MEET WITH YOUR AGENT

Your agent can save you a lot of time and energy by guiding you though the pre-listing phase. They are there to serve you and help you decide if listing your home is the right option.

PRE-QUALIFY TO BUY

Get pre-qualified to buy your next home before putting your current one on the market. Working with a reputable mortgage professional will help you understand what you need to net from your current home and achieve your goals for the next one.

PRICE CORRECTLY

Listing your home at the proper market value is critical to selling within a reasonable time frame. Be cautious of making decisions based on valuations online. Instead use your agents knowledge of the local area as a resource.

PRE-INSPECT

Home inspections are often where a home sale can go wrong. Material defects may need to be repaired prior to a buyer purchasing the home. Determine these potential fixes before you list, instead of during the negotiation process.

DE-CLUTTER

If your house is cluttered or filled with personal mementos, it’s more difficult for a potential buyer to picture themselves living there. Placing large pieces of furniture or family photos in storage is worth the effort to help your home sell quicker.

PROFESSIONAL PHOTOGRAPHY

The modern-day home search usually starts online and first impressions are very important. Make sure your real estate agent used a professional photographer in order to show your home in the best light.

& ORGANIZE

• Time to purge all those old clothes! Donate or trash any old items you don’t use anymore.

• Clear off surfaces such as, kitchen countertops, nightstands, coffee tables, dressers, etc.

• Align items in your bathroom and kitchen cabinets.

• Organize your closet! A good rule of thumb - you should be able to fit two fingers in between each hanger.

UNPERSONALIZE

• It may be hard to do, but removing pictures and other items specific to your family will give your home a clean slate.

• Remove or replace built-in items that you plan to take with you.

CLEAN INSIDE & SPRUCE OUTSIDE

DECLUTTERREPAIR

• Deep clean your home! Vacuum, wax wood floors and steam your carpets.

• Dust those hard to reach areas, as well as furniture and any light fixtures.

• Consider re-caulking around the tub and sink and polish the metals.

• Clean your windows and pressure wash the exterior.

• Have any lime green walls? It’s time to paint those loud colored rooms a neutral color.

• Address any creaking doors, drawers that jam and fix any leaky faucets.

THE ROAD MAP

INSPECTION

The buyer will usually perform a physical inspection of the home. They may even ask you to make certain repairs. Your agent will explain all of your options regarding the inspection.

CLOSING

This is the transfer of funds and ownership. Depending on when the buyer moves into the home you will need to be all packed up and ready to move.

STRATEGIC PRICING

As difficult as it may be, it’s important to review the market analysis and consider your home price objectively.

MEET WITH A REAL PROFESSIONALESTATE

There’s no commitment required on your part for the initial meeting. It will be educational and help you identify your next steps.

FINAL DETAILS

While under contract, the buyer will work with their mortgage provider to finalize the loan and perform other due diligence.

UNDER CONTRACT

At this point, you and the buyer have agreed to all of the terms of the offer and both parties have signed the agreements.

CONGRATULATIONS!YOU’VESUCCESSFULLYSOLDYOURHOME!

ESTABLISH A PRICE

Your agent will provde a market analysis which will help you set an asking price.

PREPARE YOUR HOME

View your home through the eyes of the buyer and ask yourself what you’d expect. Your agent will offer some useful suggestions.

CHOOSING AN OFFER

Your agent will present the benefits and risks of each offer. You will have the opportunity to either accept or counter any offer based on its merits.

OFFERS

NEGOTIATIONAND

If everything goes well, a buyer (and most often the agent who presents them) will present your agent with an offer.

LIST IT FOR SALE

When everything is in place your agent will put your home on the open market. It’s critical you make it as easy as possible for potential buyers to view your home.

SHOWINGS

Potential buyers may ask to see your home on short notice. It’s best if you can accommodate these requests, you never want to miss a potential sale.

Information provided by Breakthrough Broker.

WHAT IS TITLE INSURANCE

When you purchase a home, you want to have assurance that there are no problems with the home’s title. Anything attached to the property and/or defects on the title can limit your use and enjoyment of the property, as well as bring financial loss. Title insurance is purchased in order to protect you or inform you of these things.

A title search is done to help identify ownership of the property, what other rights might affect a property and what rights need to be extinguished in order to insure a new party.

HOW IS A TITLE SEARCH PREPARED AND WHAT RESEARCH IS DONE?

After a sales contract has been accepted, a title professional will search the public records to look for any problems with the home’s title and to identify all the items that affect its use and the sale. This search typically involves a review of land records going back many years. They also search bankruptcy, OFAC, County Assessor, GIS mapping and other databases in order to get as much information as possible.

More than 1/3 of all title searches reveal a title problem that title professionals fix before you go to closing. Exmaples of title issues:

• Liens from debt incurred by owners that are not released properly.

• Previous owner may have had minor construction done on the property, but never fully paid the contractor.

• Errors and/or omissions in recorded documents affecting the property conveyed.

Title professionals seek to resolve problems like these before you go to closing and a insurance policy issued to protect against them.

WHO GETS TITLE INSURANCE?

THE OWNER’S POLICY

Sometimes title problems occur that could not be found in the public records or are inadvertently missed in the title search process. To help protect owners, they can obtain an Owner’s Policy of Title Insurance to insure against these. Owner’s Title Insurance, called an Owner’s Policy, is usually issued in the amount of the real estate purchase. It is purchased for a one-time fee at closing and lasts for as long as you or your heirs have an interest in the property. The cost or fees to insure is based on rates filed by the insurer with the state relating to the amount of

Ancoverage.Owner’s

Policy provides assurance that your title company will stand behind you, monetarily and with legal defense if needed, if a covered title problem arises after you buy your home. The bottom line is that your title company will be there to help pay valid claims and possibly cover the costs of defending an attack on your title.

THE LENDER’S TITLE POLICY

Most lenders usually require a Loan Policy when they issue you a loan. The Loan Policy is usually based on the dollar amount of your loan. It protects the lender’s interests in the property should they need to foreclose, providing assurance against the inability to foreclose and their lien position. Traditionally, this policy is a cost to the buyers.

COMMIT TITLE

EFFECTIVE DATE

LEGAL DESCRIPTION

REQUIREMENTS

The following are the requirements that must be met:

1. Pay the agreed amounts for the interest in the land and/or the mortgage to be insured.

2. Pay us the premiums, fees and charges for the policy.

3. Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed, delivered and recorded.

4. You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions.

5. Payment of all taxes, charges and assessments, levied and assessed against the subject premises which are due and payable.

6. Receipt by the Company of the appropriate affidavit and indemnity executed by the owners of the subject property.

7. Warranty Deed must be sufficient to convey the fee simple estate or interest in the land described or referred to herein, to the proposed insured, Schedule A, item 2A.

NOTE: An Affidavit of Property Value (Form 82162) must accompany deed at recording.

8. Deed of Trust sufficient to encumber the fee simple estate or interest in the land described or referred to herein for the benefit of the proposed insured, Schedule A, item 2(b) or 2(c).

SCHEDULE B - SECTION II EXCEPTIONS

9. Evidence that all assessments for common expenses assessed by The Best Village Homeowners Association, as provided for in CRS 38 33.3 316, Colorado Common Ownership Interest Act, have been paid or are now current due under the Declaration referred to as item No. 9 of Schedule BII, Section herein.

REQUIREMENTS are items that will need to be satisfied prior to closing and prior to a policy for title insurance to be issued. The closing/settlement agent or title examiner will work to satisfy these items prior to or at the time of closing.

Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company:

10. Deed of Release and Full Reconveyance of the Deed of Trust from Susan Seller, a single woman to the Trustee of Trustee are Us, LLC for the benefit of Fairway Independent Mortgage to secure an indebtedness in the principal sum of $205,912.00, and any other amounts and/or obligations secured thereby, dated January 5, 2018 and recorded on January 12, 2018 at Reception No. 20181234567

1. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

2. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

NOTE: According to the public records, there has been no conveyance of the land within a period of twenty four months prior to the date of this report, except as follows:

3. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not show by the Public Record.

Warranty Deed recorded on January 12, 2018 at Instrument No. 20181234566

4. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown in the Public Records.

5. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the Public Records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquired of record for value the estate or interest or mortgage thereon covered by this Commitment.

Copyright 2006 2009 American Land Title Association. All rights reserved.

The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

6. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.

ALTA Commitment 2006 Schedule BI 508 2021301 AZ

7. Taxes for the current year, including all taxes now or heretofore assessed, due, or payable.

8. OBLIGATIONS imposed upon said land by its inclusion within any district formed pursuant to Title 48, Arizona Revised Statutes, excluding however Municipal or County Improvement Districts.

EXCEPTIONS are items disclosed by public record that are excepted from coverage under the title policies to be issued. In other terms, if an insured suffers a loss by reason of these items, their insurance policy will not cover that loss.

Title to the property is taken “subject to” items listed here. These exceptions typically include easements, covenants and restrictions that may affect the property.

9. THE LIABILITIES, OBLIGATIONS AND BURDENS imposed upon said land by reason of inclusion within the Salt River Project Agricultural Improvement and Power District and Agricultural Improvement Districts.

10. EASEMENTS, restrictions, reservations and conditions as set forth on the plat recorded in Book 242 of Maps, Page 50.

11. LIABILITIES AND OBLIGATIONS imposed by reason of the inclusion of said land within the following named Association: North Mesa Village Homeowners Association

12. RESTRICTIONS, CONDITIONS AND COVENANTS as disclosed by document entitled Covenant Running with the Land recorded in Docket 16099, Page 268.

13. RESTRICTIONS, CONDITIONS, COVENANTS, RESERVATIONS, LIABILITIES AND OBLIGATIONS, including but not limited to any recitals creating easements or party walls, omitting, if any, from the above, any restrictions based on race, color, religion, sex, handicap, familial status or national origin contained in instrument: Recorded in Docket 16349, Page 571, amendment recorded as Instrument No. 99 0301854

End of Schedule B Section I

Copyright 2006 2009 American Land Title Association. All rights reserved.

The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

THE CLOSING PROCESS

WHY DO WE USE AN ESCROW AGENT?

NEUTRALITY EXPERTISE RELIABILITY

We are an independent third party. We agree to follow mutual instruction, not one persons.

Most buyers and sellers will only go through this process a handful of times in their lifetime, so they can’t have the same expertise as someone who does this hundreds or thousands of times per year.

A proven track record in knowing how to do the necessary tasks.

First Integrity Title has licensing and auditing requirements to ensure we are acting in accordance with the laws that protect consumers.

HOW DOES THE ESCROW AGENT FULFILL THE TERMS AGREED TO?

Once the Seller and Buyer agree to terms in the purchase agreement, the countdown to closing begins. The Escrow Officer will order payoff figures, HOA status letters, final water and county taxes. This is how the title company ensures that the Buyer gets title free and clear of any debts attached to the home that the Seller incurred during the time they lived there.

The Escrow Agent will comply with all title requirements in order to issue a policy that complies with what was agreed to in the purchase agreement.

When the Escrow Agent has all the items listed they will prepare the settlement statement and other documents needed for closing, such as a deed. The settlement statement details all costs for both the Buyer and the Seller associated with the closing and in accordance with the purchase agreement.

UNDERSTANDINGGUIDE

AFTER CLOSING

Record Documents

This is how ownership or lien priority is established.

Send out payments to any other parties paid out of settlement. Use all the payoffs and account statements collected at closing. Statue may allow the title company to rely on these statements as long as they have been complied with. The title company will also follow any lender instructions to pay items.

Send out any document packages to parties that need them. Originals required by different entities or lenders.

Report any required information to the State or IRS.

Send out title insurance policies.

MOVING CHECKLIST

Completed Task Notes

Sort and purge.

Go through every room of your house and decide what you’d like to keep and what you can get rid of. Think about whether any items will require special packing or extra insurance coverage.

Research.

Start investigating moving company options. Do not rely on a quote over the phone; request an on-site estimate. Get an estimate in writing from each company, and make sure it has a USDOT (U.S. Department of Transportation) number on it.

Create a moving binder.

Use this binder to keep track of everything – all your estimates, your receipts, and an inventory of all the items you’re moving.

Organize school records.

Go to your children’s school and arrange for their records to be trans ferred to their new school district.

Order supplies.

Order boxes and other supplies such as tape, Bubble Wrap, and perma nent markers. Don’t forget to order specialty containers, such as dish barrels or wardrobe boxes.

Use it or lose it.

Start using up things that you don’t want to move, like frozen or perish able foods and cleaning supplies.

Take measurements.

Check room dimensions at your new home, if possible, and make sure larger pieces of furniture will fit through the door.

Completed Task Notes

Choose your mover and confirm the arrangements.

Select a company and get written confirmation of your moving date, costs and other details.

Begin packing.

Start packing the things that you use most infrequently, such as the waffle iron and croquet set. While packing, note items of special value that might require additional insurance from your moving company. Make sure to declare, in writing, any items valued over $100 per pound, such as a computer.

Label.

Clearly label and number each box with its contents and the room it’s destined for. This will help you to keep an inventory of your belongings. Pack and label “essentials” boxes of items you’ll need right away.

Separate valuables.

Add items such as jewelry and important files to a safe box that you’ll personally transport to your new home. Make sure to put the mover’s estimate in this box. You’ll need it for reference on moving day.

Do a change of address.

Go to your local post office and fill out a change-of-address form, or do it online at usps.gov. But in case there are stragglers, it’s always wise to ask a close neighbor to look out for mail after you’ve moved. Check in with them two weeks after the move and again two weeks after that.

Notify important parties. Alert the following of your move: banks, brokerage firms, your employer’s human resources department, magazine and newspapers you subscribe to, and credit card, insurance, and utility companies.

Take measurements.

Check room dimensions at your new home, if possible, and make sure larger pieces of furniture will fit through the door.

Organize your move with this step-by-step guide!

A FEW DAYS BEFORE

Completed Task Notes

Defrost the freezer.

If your refrigerator is moving with you, make sure to empty, clean and defrost it at least 24 hours before moving day.

Double-check the details.

Reconfirm the moving company’s arrival time and other specifics. Make sure you have prepared exact, written directions to your new home for the staff. Include contact information, such as your cell phone number.

Plan for the payment.

If you haven’t already arranged to pay your mover with a credit card, get a money order, cashier’s check, or cash for payment and tip. If the staff has done a good job, 10 to 15 percent of the total fee is a good tip. If your move was especially difficult, you might tip each mover up to $100.

Don’t forget that refreshments are always appreciated.

MOVING DAY

Completed Task Notes

Verify.

Make sure that the moving truck that shows up is from the company you hired: The USDOT number painted on its side should match the number on the estimate you were given. Scams are not unheard-of.

Take inventory.

Before the movers leave, sign the bill of lading/inventory list and keep a copy.

GLOSSARY OF TERMS

CHAIN OF TITLE

Beginning with a conveyance out of an original source of title such as a government, each succeeding deed, will or other medium which conveys and transfers the title to succeeding owners constitutes a link in the chain of title. The chain of title is the composite of all such links.

CLAIM

A right to assert, or the assertion of, a demand for payment of money due; or the surrender or delivery of possession of property or the recognition or some right. A demand for something as one’s rightful due.

CLOSING

In some areas called a “settlement.” The process of completing a real estate transaction during which deeds, mortgages, leases and other required instruments are signed and/or delivered, an accounting between the parties is made, the money is disbursed, the papers are recorded, and all other details such as payment of outstanding liens and transfer of hazard insurance policies are attended to.

CLOSING STATEMENT

A summation, in the form of a balance sheet, made at a closing, showing the amounts of debits and credits to which each party to a real estate transaction is entitled.

DEED

A written document by which title to real estate is conveyed from one party to another.

EARNEST MONEY

A deposit made by the buyer as evidence of good faith.

ENCUMBRANCE

A claim, right, or lien upon the title to real estate, held by someone other than the real estate owner.

ENDORSEMENT

Addition to or modification of a title insurance policy which expands or changes coverage of the policy, fulfilling specific requirements of the insured.

ESCROW

Technically, this term strictly refers to a deed delivered to a third person to be held by him until the fulfillment or performance of some act or condition by the grantee. In title industry parlance it means the depositing with an impartial third party called the escrow agent (usually the title company) of anything pertaining to a real estate transaction including money and documents of all kinds which are to be disbursed and delivered to the rightful parties by the escrow agent when all conditions of the transaction have been met.

ESCROW AGREEMENT

A written agreement usually made between buyer, seller, and escrow agent, but sometimes only between one person and the escrow agent. It sets forth the conditions to be performed incident to the object deposited in escrow, and gives the escrow agent instructions with respect to the disposition of the object so deposited.

GLOSSARY OF TERMS, CONTINUED

EXAMINATION

In title industry terms, to peruse and study the instruments in a chain of title and to determine their effect and condition in order to reach a conclusion as to the status of the title.

LIEN

The liability of real estate as security for payment of a debt. Such liability may be created by contract, such as a mortgage (voluntary, or by operation of law, such as a mechanics lien.

LOAN POLICY

A policy of title insurance issued to the mortgage lender insuring against loss by defects in, liens against, or unmarketability of title.

MARKET VALUE

An average between the highest price which a buyer, willing but not compelled to buy, would pay and the lowest price a seller, willing but not compelled to sell, would accept.

MORTGAGE

A temporary conditional pledge of property to a creditor as security for the payment of a debt which may be cancelled by payment.

OWNER’S POLICY

A policy of title insurance usually insuring an owner of real estate against loss occasioned by defects in, liens against, or unmarketability of the owner’s title.

POWER OF ATTORNEY

A legal instrument authorizing one to act as another’s agent or attorney.

TITLE

(1) A combination of all the elements that constitute the highest legal right to own, possess, use, control, enjoy, and dispose of real estate or an inheritable right or interest therein. (2) The rights of ownership recognized and protected by the law.

TITLE INSURANCE

Indemnity against loss resulting from defects in or liens upon a title.

TITLE SEARCH

A search and perusal of the public records for recorded instruments which affect the title to a particular piece of land.

UNDERWRITER

An insurance company which issues insurance policies either to the public or to another insurer.

NOTES

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