Home Buyer's Guide - Agave Title Agency

Home Buyer’s Guide

Benefits of Buying a Home

Are you questioning if buying a home is the right move for you? The rent you pay could build equity in your own real estate. Have you ever thought about how rent accumulates over the years? The Chart below gives you an idea of how much money is going towards rent. The rent you pay adds up to a substantial sum.

• No interest payment

• Rental amount subject to increase at any time

• Must seek landlord approval for changes

• You do not gain any equity and the profit is $0

• Temporary

• Mortgage payment may be fixed

• Deductions for the interest paid on your mortgage

• You build up equity in your home

• Free to decorate or make changes you want

• Value of the property may increase over time

• Your house becomes your home

Why Choose Agave Title Agency

Welcome to the home-buying process. Agave Title Agency was founded to help Arizonans fulfill the dream of homeownership. We are dedicated to guiding you step by step through your transaction.

WE VALUE EXCEPTIONAL SERVICE.

Whether this is your first home purchase, refinancing, or an investor, Agave Title Agency can serve you no matter what your escrow or title insurance needs are. Our local professionals have hundreds of years of combined escrow and title knowledge. We are proud to offer a complete menu of services to our customers. Agave is centered around providing a customer-focused service experience with proactive communication and updates to ensure everyone is on track.

OUR TEAM CARES.

Agave is dedicated to providing all our customers with a smooth and seamless transaction during the closing process from initial paperwork, title prelims, fundings, disbursements, purchase contract execution and property ownership transfer. We make it convenient for you with our escrow hotline that ensures live, local professionals are available to answer your questions or to route you to someone who can assist you through every step of the closing process.

WE ARE VERSATILE.

Our team works with three national underwriters, giving us greater flexibility should a stumbling block arise during the underwriting process. Agave Title is underwritten by the following companies: Old Republic Title, Title Resource Guaranty Company, and First American Title.

WE ARE ACCESSIBLE.

Agave will accommodate your escrow needs regardless of where you are located. Agave has several convenient locations throughout Arizona, including Tucson and Scottsdale.

Sco sdale Kierland

About Agave Title Agency

Agave Title Agency was founded in an effort to help Arizonans fulfill their dream of homeownership - as escrow services, the title examination process and acquisition of title insurance is an integral part of buying or selling a home. Our in-house title agency was established in 2000 and expanded to include escrow services in September 2021, thus establishing Agave Title Agency.

We focus on creating proactive communication opportunities from the moment an order is opened and throughout the transaction. Our exceptional title and escrow teams combined have hundreds of years of experience and are experts at eliminating unexpected obstacles and helping you understand each step.

We offer three national underwriters: Old Republic Title Insurance Group has been the highest rated Title Insurance Company in the nation for 16 straight years and has been in existence for 101 years with a rating of “A+” by Standard and Poor and Fitch Group. First American Title Insurance Company is a Fortune 500 company whose history dates back to 1889, with a rating of “A-” by Standard and Poor and Fitch Group. Title Resources Guaranty Company is the nation’s 6th largest title underwriter, according to the American Land Title Association’s Third Quarter 2013 market share data.

Agave Title Agency is dedicated to providing our customers with as smooth and seamless a transaction as possible. We are available to serve our customers at all points of the homeownership life cycle, whether they are buying, selling, or refinancing their property. Remember Agave Title Agency whenever you need escrow services or title insurance, and be sure to check our discounted rates for resales within five years or upon refinancing.

Benefits of using a REALTOR® A-Z

ACCESS: The Multiple Listing Service (MLS) provides a wider reach to homes on the market. It’s the first place most Realtors will check for properties, and it can also alert agents to the most recent listings or ones that haven’t hit the public market yet.

BARGAIN: Agents can negotiate on your behalf to bring down the overall cost of buying a home and even fight for additional incentives — like keeping recently added appliances or having the seller cover the closing costs.

CONTRACT WRITING: Your agent will provide standard forms for your transaction.

DEDICATED: Your agent will work diligently to help you find the home of your dreams and stand by you throughout the entire process.

ETHICS: Realtors follow their strict Code of Ethics that obligates them to treat all parties of a transaction honestly and put the clients’ interests first.

FIDUCIARY DUTY: A legal responsibility of acting in a way that protects the interests of another party. These duties include confidentiality, disclosure, loyalty, reasonable care and diligence, obedience, and accounting.

GLOSSARY: Your agent will help you understand real estate lingo and vocab.

HELPFUL: Buying a home and financing involve many questions that your agent can answer.

INTERVIEW: Your agent can help you understand what you are looking for in a new property.

JUGGLING: Your agent will coordinate the homes you want to tour and contract deadlines.

KNOWLEDGE: Real estate agents are familiar with local architecture and can show you houses based on specific styles or features you want.

LAWS: Real estate agents are up-to-date with laws that affect you and your home buying process.

MARKET CONDITIONS: Your agent will advise you on current market conditions.

NEEDS: Your agent will know your needs and advocate for them.

OBJECTIVE: An agent can help you stay focused on what’s most important when emotions arise.

PREAPPROVAL: An agent can direct you to a reliable lender to become preapproved for financing.

QUALIFIED: You’ll have peace of mind knowing you are working with a qualified professional.

REALTOR: An agent who is a member of the National Association of REALTORS® and follows a strict code of ethics.

SALE PRICE: An agent will know if the sales price is appropriate for the property being sold.

TECHNOLOGY: Your agent is equipt with the tools and programs to make the process run smoothly.

UNDERSTANDING: There are a million reasons to buy a home, and most agents have heard them all.

VIP: That’s how your agent will treat you!

WALK THROUGH: Your agent will be by your side during the Final Walk-Through to ensure the home is in the agreed-upon state before the transfer of ownership is complete.

XMARKS THE SPOT: An agent is right there with you when signing closing documents.

YAY: They celebrate your victories as their own!

ZOOM: Near or far, an agent can help you buy inperson or virtually, working on your behalf.

The Home Buying Process

Find an agent for your Buyer Consultation

You are Pre-Qualified by Lender View homes fitting your criteria

Offer made on your favorite home!

BUYER'S DUE DILIGENCE

Inspections: Home, Wood Infestation, Roof, Pool Review inspections and negotiates appropriate requests

Reports: Seller Disclosure, Title Commitment, CCRs, HOA Disclosures

Buyer secures Home-owner's Insurance within inspection period Review with Buyer and present Buyer's responses

Signed documents sent to Lender

After approval of documents Lender wires funds and gives OK to record

Signing of documents by both Seller & Buyer Documents recorded at County Recorder

Contract and Earnest Money deposited with Escrow Company: Escrow Opened/Title Search ordered

CONTRACT IS ACCEPTED!

LOAN APPROVAL PROCESS

Mortgage Company

Rejection

Underwriting/ Property Appraisal

Buyer conducts final walk-through

Sent back to Escrow and Escrow Company distributes funds

Approval

Escrow Company obtains payoffs and collects other info.

You are given the keys to your new home!

Title policy, deed, etc. are sent to you

Important Terms to Know

ADDENDUM: Something added. A list or other material added to a document, letter, contractual agreement, escrow instructions, etc., to modify the original. (See Amendment)

ADJUSTABLE RATE MORTGAGE (ARM): Mortgage loans under which the interest rate is periodically adjusted, in accordance with some market indicator, to coincide with the current rates more closely. The extent and number of these adjustments are agreed to at the loan’s inception.

AGENCY: Any relationship in which one party (agent) acts for or represents another (principal) under the authority of the latter. Agency involving real estate should be in writing, such as listings, buyer/broker agreements, power of attorney, etc.

AMENDMENT: A change to correct an error or to alter part of an agreement that doesn’t affect the essential intent.

AMORTIZED LOAN: A loan that is paid off—both interest and principal. Paid off by regular payments that are equal or nearly equal.

ANNUAL PERCENTAGE RATE (APR): The borrower’s costs of the loan term expressed as a rate. This is not their interest rate.

APPRAISAL: An estimate of the value of property resulting from analysis of facts about the property; an opinion of value.

APPRECIATION: An increase in the value of real property due to positive improvement or the elimination of negative elements in the surrounding area.

ASSESSED VALUE: The valuation placed on real property for purposes of taxation. This valuation does not necessarily correspond with the market valuation.

BALLOON NOTE: A promissory note that calls for the minimum payment of principal and interest payment at regular intervals. This type of note requires a substantial final payment representing all the remaining principal.

BENEFICIARY: The recipient of benefits, often from a deed of trust, usually the lender. It can also be an individual who will receive an inheritance upon the death of another.

CC&Rs: A term used in Arizona to describe limitations in the deed on use and improvements to real property, frequently in a subdivision.

CLOSING DISCLOSURE (CD): The closing Disclosure form is designed to provide disclosures that help the borrowers understand all the costs involved in the transaction. This form will be given to the consumer three (3) business days before closing.

CLOSE OF ESCROW: Usually the date the buyer becomes the legal owner and title insurance becomes effective.

CLOSING PROTECTION LETTER (CPL): PURSUANT ARS 6-841.02

A real property escrow agent that is a title insurance agent shall disclose to the buyer and seller of a residential dwelling that the title insurer shall offer on request a closing protection letter that provides protection for the loss of escrow monies due to fraud or dishonesty of the escrow agent. This disclosure requirement applies only to transactions involving a buyer and seller of a residential dwelling and shall be made when the buyer or seller employs the escrow agent. The fee for each closing protection letter shall not exceed twentyfive dollars for the protection of a party receiving the benefit of closing protection.

CLOUDED TITLE: An irregularity, possible claim, or encumbrance that, if valid, would adversely affect or impair the title.

CONVENTIONAL LOAN: A mortgage or deed of trust not obtained under a government-insured program, such as FHA or VA.

COMPARABLE SALES (COMPS): Real estate sales on properties of similar age, location, and features to the subject property used for price analysis and appraisals.

DEED: A document through which a conveyance of property is effected.

DEED OF TRUST: Represents an agreement between the borrower and a lender to have the property held in trust by a neutral and independent third party until the loan is paid off. Deeds of trust are used as an alternative to a mortgage, but there are differences between these arrangements.

DEED RESTRICTIONS: legal agreement between two or more parties that limits the use of real property.

DEPRECIATION: Loss in value occasioned by ordinary wear and tear, destructive action of the elements, or functional or economic obsolescence.

DOWN PAYMENT: The difference between the purchase price and the portion of the purchase price being financed. Most lenders require the down payment to be paid from the buyer’s own funds.

EARNEST MONEY DEPOSIT: Down payment made by a purchaser of real property as evidence of good faith, a deposit or partial payment

EASEMENT (RIGHT OF WAY): A right, privilege, or interest limited to a specific purpose that one party has in the land of another.

ENCROACHMENT: Any building, improvement, or structure (such as a wall, fence, or driveway) located on one property that intrudes upon the property of another.

ENCUMBRANCE: Any interest, right, lien, or liability attached to a parcel of land (such as unpaid taxes or an unsatisfied mortgage) that constitutes or represents a burden or charge upon the property.

ENDORSEMENT: As to a title insurance policy, a rider or attachment forming a part of the insurance policy expanding or limiting coverage.

EQUITY: The market value of real property, less the amount of existing liens.

ESCROW FEE: A fee for preparing the necessary documents to transfer property ownership. This fee is based on the sales price and is usually split between the buyer and seller.

ESCROW OFFICER: The Escrow Officer conducts the process of your escrow. They prepare documents, disburse funds, conduct signings, and much more.

FAIR MARKET VALUE: The average of the highest price that a buyer, willing but not compelled to buy, would pay and the lowest price a seller, willing but not compelled to sell, would accept.

FORECLOSURE: The legal process by which a lender or creditor exercises its legal rights to sell the property, which was security for its loan at public auction, and the owner’s rights are terminated. Bank-owned properties are those where the former owner’s lender acquired the property after such an auction.

FIXED RATE MORTGAGE: A mortgage where the interest rate remains the same for the life of the mortgage.

FIXTURES: Personal property attached to real property and legally treated as real property while it is so attached. Examples: medicine cabinets, window blinds, and chandeliers.

HAZARD/HOME OWNER’S INSURANCE: Real estate insurance that protects against fire, some natural causes, vandalism, etc., depending upon the policy. Buyers can add liability insurance and extended-coverage for personal property.

HOME WARRANTY POLICY: A home warranty is a renewable home service plan that helps with the cost of repairing or replacing parts of a home’s systems and appliances. It’s not homeowners’ insurance but acts as a complement to it – protecting things that your insurance doesn’t. The contract specifies who orders and pays for this.

IMPOUND ACCOUNT: A trust type of account created by lenders to accumulate a borrower’s funds to meet periodic payments of taxes, mortgage insurance premiums, and/or future insurance policy premiums required to protect their security.

IMPOUND FINANCING: Temporary or short-term loans. They are often used with new construction and usually replaced with a permanent long-term mortgage.

INTESTATE: Designates the estate or condition of failing to leave a will at death. “To die intestate.”

JUDGMENT: A decree of a court. In practice, this is the lien or charge upon a debtor’s lands when the Court awards money to a creditor.

LEGAL DESCRIPTION: Geographical description of a real estate property to identify the property for legal transactions. A legal description of the property unambiguously identifies the location, boundaries, and any existing easements on the property. It should identify a parcel of land so thoroughly that it cannot be confused with any other.

LIEN: A legal term that claims the ownership of the property as listed on the title of the home. Thus, the home is being held as collateral until a certain debt is paid—for example, judgments, taxes, mortgages, and deeds of trust.

LOAN ESTIMATE (LE): Form designed to provide disclosures that will be helpful to borrowers in understanding the key features, costs, and risks of the mortgage loan for which they are applying. The initial disclosure must be given to the borrower three (3) business days after application.

LOAN/LENDER’S POLICY: Protects the lender for the loan amount. If you only have a Loan Policy, you are not protected if a problem materializes with your title.

LOAN ORIGINATION FEE: A one-time fee frequently charged by the lender to set up a loan.

LOAN TIE-IN FEE: A fee charged by escrow to complete the procedures required when a lender creates a new loan for a purchase. This fee is split between buyer and seller.

MARKETABLE TITLE: Real property ownership free of liens, defects, encumbrances, or claims.

MECHANIC’S LIEN: A lien on real estate, securing the payment of debts due to persons providing labor, services, or materials incident to the construction of buildings and improvements on the real estate.

MIP/PMI PREMIUM (3 MONTH IMPOUND): A fee to insure certain loans. Depending on the down payment, amounts vary. This insurance premium allows the lender to lend a higher percentage of the sales price.

MORTGAGE: The instrument by which real property is pledged as security for repayment of a loan.

OWNER’S POLICY: Protects you and assures that your title company will stand behind you if a covered title problem arises after you buy a home.

ORIGINATION/PROCESSING FEE: Loan processing fee for originating the loan. Origination generally includes all the steps from taking a loan application up to the disbursal of funds.

PITI: A payment that includes principal, interest, taxes, and insurance.

PLAT (PLAT MAP): A map dividing a parcel of land into lots, as in a subdivision.

POWER OF ATTORNEY: A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes called an “Attorney-in-Fact.”

PRINCIPAL: (1) A sum of money owed as a debt on which interest is payable. (2) A person who empowers another to act as his representative or agent. (3) The person having prime responsibility for an obligation as distinguished from one who acts as a surety or endorser.

PROCESSING FEE: Fee(s) charged for distribution of documents by courier, express mail, overnight deliveries, etc. This fee is split between buyer and seller.

PUBLIC RECORDS: Records which by law impart constructive notice of matters relating to land.

QUITCLAIM DEED (QUICK CLAIM DEED): A deed that transfers whatever interest the maker of the deed may have in the particular parcel of land. A quitclaim deed contains no covenants or warranties.

RECORDING: Filing documents affecting real property as a matter of public record.

REAL ESTATE AGENT: A real estate agent is licensed by the state to represent parties in the transfer of real property.

REAL PROPERTY: Also called “real estate.” (1) Land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings, such as plumbing and heating fixtures, or other such items that would be personal property if not attached. (2) May refer to rights in real property and the property itself.

REALTOR®: A licensed real estate agent and a member of the National Association of REALTORS®. REALTORS® belong to their state and local Association of REALTORS®

RECORDING FEE: A fee charged by the county to record an instrument. This fee is usually split between buyer and seller, and the amount varies depending on how many documents are being recorded at the close of escrow.

RECORDATION: Filing instruments of a legal nature with the recorder of the jurisdiction – such as a deed or mortgage – affecting the title to real estate. When such an instrument is properly recorded, it is considered a matter of public record. Legally, that means that all subsequent purchasers are deemed to have constructive knowledge of that information.

SALES CONTRACT (PURCHASE AGREEMENT): The legal document contractually binding the terms of the buyer’s and seller’s agreement to sell/purchase real estate, usually completed by the real estate agent and signed by both parties.

SETTLEMENT STATEMENT: Provides a breakdown of costs involved in a real estate transaction.

SHORT SALE: A real estate transaction in which the sales price is insufficient to pay the loans(s) encumbering the property, in addition to the costs of sale, and the seller is unable to pay the difference. The approval of the seller’s lender(s) is required for the sale to proceed.

SPECIAL ASSESSMENT: A lien assessed against real property by a public authority to pay costs of public improvements, such as sidewalks, sewers, and street lights, which directly benefits the assessed property.

SUBDIVISION: A tract of land surveyed and divided into lots for purposes of sale.

SURVEY: The measurement of the boundaries of a parcel of land and its area.

TRID (TILA-RESPA Integrated Disclosures): A series of guidelines enforced by the Consumer Financial Protection Bureau (CFPB) that specifies the mortgage information lenders must provide to borrowers and when they need to send it.

TITLE COMPANY: The title company will complete the title search and examination. They also provide title policy insurance for real property.

VA LOANS: Housing loans to veterans by banks, savings and loans, or other lenders that are guaranteed by the Veterans Administration, enabling veterans to buy a residence with little or no down payment.

WARRANTY DEED: A deed in which the grantor warrants or guarantees that good title is being conveyed.

ZONING: Laws passed by local governments regulating the size, type, structure, nature, and use of land or buildings.

The Escrow Process

WHAT IS ESCROW?

In a real estate transaction, escrow provides a “safety mechanism” for all parties involved in the real estate transaction. The escrow agent is an impartial third party who holds the funds and legal instruments necessary to complete the transaction and makes concurrent delivery of the deed to the purchaser and the purchase money to the seller when all of the terms and conditions of the transaction have been performed. The authority given to an escrow agent is strictly limited by the instructions provided by the parties involved. These instructions are usually contained within the purchase agreement.

Consequently, an escrow agent acts on the mutual instructions given and does not represent any party to the transaction.

HOW IS AN ESCROW OPENED AT AGAVE?

Once all parties sign and accept a Purchase Agreement, the buyer’s agent will open escrow. The fully executed contract and the earnest money will be delivered to escrow. The escrow holder will follow the buyer’s and seller’s mutual written instructions, maintaining a neutral stance to protect all interested parties.

Life of an Escrow

OPENING THE ESCROW

(Items needed to open escrow)

• Fully Executed Purchase Contract

• Earnest Money

• Copy of Listing

• Cost Estimate Sheet

PROCESSING THE ESCROW

• Escrow deposits the earnest money via check or wire transfer.

• Escrow orders Preliminary Title Report from Agave Title Agency.

• Escrow requests payoff or assumption information, homeowner’s association, etc.

TITLE EXAMINATION

• Property is searched.

• Title examiner researches property and parties.

• The Preliminary Title Report is typed and sent to the escrow office, lender, agents, sellers and buyers.

ESCROW CLOSING PREPARATION

• Preliminary Title Report received by escrow officer and is reviewed for any surprises. i.e., tax liens, judgments, unknown liens of records, discrepancies in the legal description, delinquent taxes, access problems, etc.

• Escrow advises agents that additional information is needed to clear any surprises revealed by Preliminary Title Report.

• Escrow prepares for closing.

• Escrow follows up on receipt of the following, if needed, per Purchase Contract:

• Termite report

• Buyer’s Hazard insurance

• Home Protection Plan

• Repair Bills

• Payoff Information

• New Loan Package

• Assumption Information

• Warranties

TIME FOR CLOSING

• Loan documents are received, and escrow officer works on the file to reflect closing and advises agents of any funds (if any) are needed for closing.

• Closing appointment times are set for seller and buyer with escrow office.

• Advise all parties executing the document to bring a valid government issues picture, i.e., license, passport, etc.

• Advise buyer to bring in a cashier’s check or wired funds for closing.

EXECUTION OF DOCUMENTS

• The buyer & seller meet with escrow officer and execute all documents.

LENDER FUNDS

• After all parties have executed the necessary documents, escrow returns loan packages to the new lender for review and funding.

• Lender funds the new loan, and the lenders check, or wire is sent to escrow for processing.

RECORDATION

• After escrow receives all funds needed and has ascertained that all funds are collected, original documents are sent to the Recording Desk for recordation.

• Once documents are recorded, escrow notifies agents.

DISBURSEMENT OF FUNDS

• All disbursements are made in accordance with Settlement Statement.

POLICIES ISSUES

• Purchaser receives Owner’s Title Policy.

• New lender receives ALTA Loan Policy.

Understanding Title Insurance

HISTORY OF TITLE INDUSTRY

Prior to the institution of title insurance, purchasing real estate in the United States was a risky endeavor. During a property transaction, conveyancers would establish the rights of title to a property based on public records searches or other property abstracts. The title would be cleared of any liens, rights, or other encumbrances before conveying the property to new buyers or lending against the property; however, with limited resources and no insurance backing, the risk of losing a property due to unresolved issues was still significant. Additionally, if an unresolved issue caused problems, the harmed borrower or lender would have to prove legal negligence to collect damages from the conveyancer for their errors, which was very difficult. The American Land Title Association was formed in 1907 and led the charge for universal practices. Over time, more companies saw the need and began to institute standards, which started to spread nationwide. Today, title insurance is an integral part of the whole home-buying process. It decreases the risk for mortgage lenders, reducing the price of mortgages. In addition, it decreases the risk to home buyers, who can gain peace of mind knowing that they are no longer financially liable even if a title problem arises.

WHAT IS TITLE INSURANCE?

Title insurance protects buyers against the risk of not acquiring a marketable title from the seller. It provides coverage for certain losses due to defects in the title that, for the most part, occurred before your ownership. It insures against defects such as prior fraud or forgery that might go undetected until after closing and possibly jeopardize your ownership and investment. Unlike most insurance policies, title insurance is a onetime-only fee. An owner’s policy will protect you as long as you and your heirs have an interest in the property.

HOW TITLE INSURANCE DIFFERS FROM OTHER FORMS OF INSURANCE

Title insurance is unique in the world of insurance, for unlike auto, hazard, or life insurance that operates under “risk assumption” (assuming something might happen), title insurance works for “risk elimination” (eliminating the possibility of something happening). Title examiners are trained to analyze records for information that affects title to real property, including, but not limited to, identifying the rights others may have in your property, encumbrances against your property (liens, judgments, or other legal actions), or rights of way. As a policyholder, this upfront analysis gives you the peace of mind that your title risk has been effectively reduced.

Other insurance rates are based on an actuarial study of anticipated losses, and premiums are pooled with the assumption that a given number of claims will likely be made. Title insurance premiums differ as they are paid to identify and eliminate potential claims and risks so that they won’t happen. In addition, unlike other insurance premiums, which are paid annually for regular renewal, title insurance is a one-time premium and is far less costly than other forms of insurance, considering the investment you protect is your home and the land underneath.

WHEN IS THE PREMIUM DUE?

An owner’s title insurance policy is purchased only once at the close of escrow. It is customary for the seller to pay for the Owner’s Policy. The Buyer pays for the Lender’s Policy if there is a new loan. For a modest onetime premium in relation to the value of the property involved, the insured receives the protection of a title policy backed by the reserves and solvency of an insurance company.

The Importance of Title Protection

Title insurance is about protection - protecting your home, your family, and yourself. Many title issues could cause you to lose your real property or mortgage investment. Even the most careful public records search may not disclose the most dangerous threat of hidden risks and may only be uncovered years later. With title insurance from a reputable and financially solvent company, the ownership of your home could be protected.

Here are some examples of title issues that may occur:

• Deeds by persons supposedly single but secretly married.

• Deeds in lieu of foreclosure, given under duress.

• Marital rights of spouse purportedly, but not legally, divorced.

• Impersonation of the true owner of the land.

• Deeds by minors.

• Deeds by persons of unsound mind.

• Deeds to or from defunct corporations.

• Defective acknowledgments by notaries.

• Duress in execution of instruments.

• Erroneous reports furnished by tax officials.

• Forged deeds, releases, etc.

• Mistakes in recording legal documents.

• Surviving children omitted from a will.

• Administration of the estate of persons absent but not deceased.

• Birth or adoption of children after the date of the will.

• Claims of creditors against real property sold by heirs or devisees.

• Deed of community property recited to be separate property.

• Deeds by foreign parties.

Owner’s Policy Comparison Chart

COVERED RISKS

1.Someone else owns a recorded right affecting your title.

2.Someone else has rights affecting your title from leases, contract, or options.X

3.Forgery or impersonation.

4.Someone else has an easement on the land.

5.Any of Covered Risks 1 thru 4 occurring after policy date.

6.Someone else has a right to limit use of the land.

7. Your title is defective (includes repudiation of electronic signatures).

occurring before or after policy date

9.Someone else has an encumbrance on your title.

11. Lack of both actual vehicular and pedestrian accessNo right of access to and from the Land.**

12.You are forced to remove or remedy an existing violation of CC&R’s.

13.Your title is lost or taken because of a violation of any covenant, even if the covenant is excepted in Schedule B.

14. Violation or enforcement of any law or government regulation concerning:

a.Building

b.Zoning

c.Land use

d.Improvements on the Land

e.Land division, or

f.Environmental protection

15.An enforcement of a forfeiture, police, regulatory, or national security power.

*16.Because of a violation existing at the Date of a Policy of a State or Municipal subdivision law or regulation.

a.You are unable to obtain a building permit.

b.You are ordered to remove or remedy the violation.

c.Someone else refuses to perform a contract to purchase, lease or make a mortgage loan on it.

17. You lose your title due to condemnation without knowing of the taking (see Policy for details).

COVERED RISKS

*18. You are ordered to remove or remedy your existing structures other than boundary walls or fences because any portion was built without a building permit.

*19. You are ordered to remove or remedy your existing structures because they violate existing zoning law or regulation.

20. You are not able to use the land because use as a single family residence violated an existing zoning law or regulation.

*21. You are forced to remove any portion of your existing structures because they encroach onto your neighbor’s land.

22. Someone else exercises a legal right refusing to perform a contract to purchase or make a mortgage loan on it because your neighbor’s existing structures encroach onto the land.

23. You are forced to remove any portion of your existing structures which encroach onto an easement or over a building set back line even if excepted in Schedule B.

24. Your existing structures are damaged due to the exercise or any right to use or to maintain any easement affecting your title even if excepted in Schedule B

25. Damage to existing improvement including lawn, shrubbery, and trees resulting from right to use surface of the land for extraction or development of minerals, water or other substance even if excepted in Schedule B.

26. Someone tries to enforce a discriminatory covenant that they claims affects your title.

27. Assessment of supplemental real estate taxes not previously assessed against the land for any period prior to the policy date because of construction or a change of ownership or use before the policy date.

28. Your neighbor builds any structures after the Date of Policy Date other than boundary walls or fences, which encroach onto the land.

29. Your title is unmarketable which allows someone else to refuse to perform a contract to purchase, lease, or make a mortgage on the land.

30. Someone else owns an interest in your title because a court order invalidates a prior transfer of the title under federal bankruptcy, state insolvency or similar state or federal creditors’ rights laws.

31. The residence with the Property address shown in Schedule A is not located on the land.

32. Any defect in or lien or encumbrance on the Title that has been created or attached or has been filed or recorded in the Public Records subsequent to the Date of Policy and prior to the recording of the deed or other instrument vesting the Title in the Public Records.

33. The map, if any, attached to this Policy does not shown the correct location of the Land according to the public records.

**The ALTA Homeowner’s Policy is only available on existing single family residential properties (1-4 units).

*Maximums and deductibles apply. Underwriter’s deductibles and issuance requirements may vary. This material is only to be used as a general guide to coverage’s. Please refer to the actual policy for details of coverage’s. Copies are available upon request. Information deemed reliable, but not guarnateed. Subject to change. As of 2021.

Understanding your Title Commitment

A title commitment is a document by which a title insurer discloses to all parties connected with a particular real estate transaction all the liens, defects, burdens, and obligations that affect the subject property. It lists all requirements that must be met before a title company can insure a title as “marketable” or a loan as having a certain priority.

There are three basic parts of a Title Commitment. They are; Schedule A, Schedule B-I, and Schedule B-II.

Schedule A: This part of the commitment stipulates the basic facts of the transaction, including the date of certification (the effective date), the proposed insureds (purchaser and lender), the types and liability amounts of the policies to be issued, the estate being insured, how the title to the state is currently vested (present owner or owners and how they hold title), the legal description and address of the subject property and the estimated title insurance charges, based on the provided information.

Items to Review in Schedule A upon receipt:

• Make sure that all information is spelled or inputted correctly and matches the contract, including the spelling of the buyer’s name, purchase price, seller’s information, property address, and legal description.

Schedule B-1: This section lists the necessary requirements that must be met before a title policy can be issued, including any or all of the following items: releases of deeds of trust, releases of tax liens, entity or estate documentation, releases of judgments, correction deeds, warranty deeds, and deeds of trust.

Items to review in Schedule B-I upon receipt:

• Power of Attorney: If any parties are using a Power of Attorney, make sure to get a copy of the POA to your closer well in advance of the closing for review.

• Business Entity: If the seller or buyer is a business entity such as a limited liability company, or partnership, requirements may ask for verification of signing authority.

• Multiple Deeds of Trust: Sometimes, the title commitment will show two deeds of trust on a property, yet the seller has only a single loan. Notify your closer immediately if this is the case so that a Release of Deed of Trust from the previous lender or a Letter of Indemnity from the previous title company can be obtained.

• Federal Tax Liens or Judgments: The requirements may show these items. If these liens do affect your seller or buyer, please contact the appropriate parties to obtain payoff information. If the liens show up as a result of a common name, the seller or buyer may be asked to supply additional information to verify their identity.

• Death Certificate: If one of the parties has passed away, but the title has not cleared, a death certificate must be recorded in lieu of the other party signing the Warranty Deed. Contact a legal professional for more information on how to handle a death in a real estate transaction.

• Owner’s Policy on Vacant Land: This type of policy may require an ALTA or other type of survey. This is typically paid for by the seller.

Schedule B-II: This section lists the necessary exceptions to the title. The items not being insured by the title company include seven standard exceptions, taxes, and further burdens such as covenants, conditions, and restrictions (CC&Rs), easements, and/or mineral reservations.

Sometimes items show up against a parcel of real property because another person has a name similar to an involved party. This is one reason we ask for an Identity Statement, to determine if items are inaccurate and can be deleted.

Acquiring A New Loan

WHEN AND WHERE TO APPLY FOR A LOAN?

There are ample sources available for obtaining a new home loan. You can attain a home loan from a bank, credit union, mortgage company, or mortgage broker. Your REALTOR® may give you suggestions for several lenders they find dependable in your community. It is essential to apply for a loan as soon as possible to receive preapproval from a lender to know what you can afford before you start looking at homes.

MAKE SURE YOU ARE PREPARED!

Items required for your loan application:

• Government Issued Photo ID

• Residence Addresses (Last 2 Years)

• Employer Names and Addresses (Last 2 Years)

• Gross Monthly Income

• Checking and Savings Account Information

• Name and Address of Bank(s)

• Account number(s)

• Two (2) most recent bank statements

• Information on all current loans and/or credit cards

• Name and Addresses on Accounts

• Account Numbers

• Approximate Balances

• Monthly Payment on Current Loan/Credit Cards

• Funds for Credit Report and Appraisal Costs

• W-2 (last 2 Years)

• Two (2) Most Recent Paycheck Stubs

• Certificate of Eligibility and DD-214 (VA Loans Only)

Note that your lender will mail verification requests and order an appraisal for the home you are buying.

Make sure to contact a hazard (or fire) insurance agent early in the loan process. Your REALTOR® or lender can help you with this. Order your insurance as soon as the loan is improved, so there are no delays at closing. When you contact your insurance agent, ask about additional coverage in your Homeowner’s Policy to ensure you are protected against additional liability that may not be on the standard hazard insurance.

WHAT IS A “POINT”?

A point is an optional fee you pay when you get a home loan. Sometimes called a “discount point,” this fee helps secure a lower interest rate on your loan. One point is equal to 1% of the new loan amount. A lower rate means a lower monthly payment, making it easier to manage your monthly budget. Points are a onetime cost, but you benefit from lower monthly payments for many years. If you would benefit from a lower interest rate, it might be worth making this upfront payment. Speak to your lender for more details on how points could benefit you.

WHAT TO AVOID DURING THE LOAN PROCESS

Avoid making lifestyle changes

• Changing you job

• Trading in car

• Applying for new credit

• Cosigning for another person

• Closing or opening any new bank accounts

• Do NOT make any large purchases.

• This can affect the debt-to-income ratios that an underwriter will review during the loan process for approval.

• Avoid late payments or overdrafts.

• Borrowers typically cannot have any late payments within the last 12 months to qualify for a loan.

• One 30-day late payment can plunge a person’s credit during the loan process.

• Mortgage underwriters will carefully review bank statements and look for any overdraft fees, which can be a problem.

WHAT HAPPENS AFTER YOUR LOAN IS APPROVED?

Once the loan is approved and the close of escrow is approaching, the lender will send loan documents to Agave Title Agency. After loan documents are received, your escrow officer will prepare the estimated settlement statement. This statement breaks down the funds in the transactions, who is being charged, and how much money is needed for closing costs. Be aware that this closing costs amount may differ from the original estimate due to changes in items such as prepaid interest, prorated fees, impound accounts, etc.

Types of Loans

ADJUSTABLE-RATE LOAN (ARM)

An adjustable rate is a home loan with a changeable rate. Your interest rate depends on the current market conditions. When you first take out an ARM, you typically start with a fixed rate for a set period of time. Once that introductory period is up, your interest rate will adjust monthly or annually. An adjustable-rate loan could help you get a larger loan but keep in mind the maximums, caps, fluctuations, and time frame when considering this type of loan.

ASSUMABLE LOAN

Assumable loans are not very common in today’s market. An assumable loan is a mortgage the borrower may transfer to another party. That is, upon the sale of real estate with an assumable loan, the seller (who is the borrower) lets the buyer take over the mortgage, which allows them to buy the real estate with the same terms as the original loan. Today, some loans are still characterized as assumable. Still, the purchaser must meet all underwriting requirements necessary for an original loan, and the interest rate can usually be increased to market rates.

BUYDOWN LOAN

Typically, the seller contributes funds to an escrow account that subsidizes the loan during the first years, resulting in a lower monthly payment on the mortgage. This lower payment allows the homebuyer to qualify more easily for the mortgage. A buydown can involve purchasing discount points against the mortgage loan, which may require payment of an up-front fee. Buydowns can save homeowners money on interest over the life of the loan. Note there are different types of buydown loans; it is best to consult a professional to see what options apply to you.

A 2-1 Buydown, for example, is a specific type of mortgage buydown that allows homebuyers to save on their interest rate for the first two years of the loan.

COMMUNITY HOMEBUYER’S PROGRAM

This program targets first-time home buyers and offers a fixed rate and a low-down payment of just 3 to 5%. The prerequisite to qualify for this program are considerably lenient. The program requires no cash reserves; however, specific stipulations still apply; the buyer’s income must be within a certain range, and a training course may be required. Check with your loan officer to see if this program is obtainable in your community and whether you might qualify.

CONVENTIONAL LOAN

This type of loan is not insured or guaranteed by any government program. Investors secure conventional loans. Since the government doesn’t guarantee the loan, this loan is harder to qualify for. It requires a minimum FICO score of 620 or higher and a low debt-to-income ratio. Conventional loans tend to cost less than other loans and can be used to purchase a primary home or an investment property. You’ll have to take out a private mortgage insurance (PMI) if you don’t have a 20% down payment; however, you can cancel your private mortgage insurance (PMI) once you reach 20% equity in your home.

FHA LOAN

FHA Loans appeal to buyers because they don’t require a large down payment. You can put down as little as 3.5 percent of the property’s purchase price. This loan has strict regulations on the property conditions and only ensures loans on primary residences. FHA has flexible options for borrowers with bad credit scores, primarily because the Federal Housing Administration insures the loan via Housing and Urban Development (HUD). An FHA funding fee includes a mandatory monthly insurance premium and an upfront premium, which will add to the mortgage cost. The seller pays a portion of the closing costs typically paid by the buyer in a conventional loan program.

JUMBO LOANS

A jumbo loan is a mortgage that exceeds the financing guidelines laid out by the Federal Housing Finance Agency. Fannie Mae or Freddie Mac cannot purchase or guarantee these loans. A jumbo loan applies to financing luxury homes (above $1 million). Given the high loan amount, these loans are difficult to qualify for. You will need excellent credit and be prepared for higher interest rates.

USDA LOAN

A USDA loan is a type of mortgage only available for rural and suburban home buyers. The US Department of Agriculture backs USDA loans. You must meet the USDA’s eligibility requirements to qualify for the loan. This loan requires no down payment and is a good option for low-income buyers.

VA LOAN

The Department of Veteran Affairs guarantees VA loans. Veterans, service members, and the families of the veterans and service members can apply for this loan. A VA loan covers up to 100% of the purchase price and requires no down payment, no PMI insurance, and flexible credit requirements.

Who Pays What?

The cost of escrow services is covered by the buyer or seller as determined by local customs, market conditions, or contractual agreements made within the purchase offer.

BUYER can generally expect to pay:

• Down payment

• Half the escrow fee

• Half the escrow loan tie-in fee (if applicable)

• Half the escrow processing fee

• Half the on-recording charges

• All Lender charges except specific ones a Lender may require a Seller to pay

• Termite inspection (negotiable except on VA)

• Lender’s title insurance policy

• Prepaid items such as lender’s interest, HOA dues, etc.

• The hazard insurance premium is based on the first year, and however much the lender requires to impound

• Home Warranty Premium per contract

SELLER can generally expect to pay:

• Half the escrow fee

• Half the escrow loan tie-in fee (if applicable)

• Half the escrow processing fee

• Half the on recording charges

• Owner’s Title Policy

• REALTORS® commission

• Home Warranty Premium per contract

• Any property repairs per the contract

• Any unpaid HOA dues or HOA fees per contract

• Payoff current Mortgage and all loans in the seller’s name (unless the buyer is assuming the loan)

• Payoff any liens, judgments, or tax liens against the seller

• Any Loan fee a Buyer’s Lender may require, i.e., FHA, VA

Property Taxes in Arizona

Arizona Property Taxes are levied twice a year for half year periods and paid in arrears.

• 1st Half Jan-Jun Taxes: Due October 1st Delinquent Nov 1st of that SAME year

• 2nd Half Jul-Dec Taxes: Due March 1st Delinquent May 1st of the FOLLOWING year

Note: Property taxes are prorated at closing for taxes accrued but not yet due and payable, based on the yearly tax amount and the closing date. For cash transactions escrow will collect the full years tax.

What to Expect at Closing

COORDINATE SIGNING: Once the lender has sent over loan documents and escrow/title has a clear title, the escrow team will reach out to coordinate a signing appointment for closing documents.

CLOSING FUNDS: The escrow team will provide you with the final amount needed to purchase your home. Cashier checks and wire transfers are acceptable for closing funds. If you prefer to wire the funds, let your Escrow Officer know ahead of time so they can make arrangements. BEWARE OF WIRE FRAUD!

IDENTIFICATION REQUIRED: Regardless of how you choose to sign, a valid identification with your photo ID will be needed. Agave will also need your social security number and a forwarding address for tax reporting purposes. Don’t hesitate to contact your escrow officer if you have any questions regarding these requirements.

Signing Options

IMPORTANT: Please notify your Escrow Officer immediately if you will not be present to sign in person at closing. Depending on where you live, there are various ways you can complete the purchase of your property or refinance your mortgage.

IN-PERSON: The traditional and most common way to sign closing documents is in person at the escrow officer’s office. The escrow officer will walk you through the documents being signed and explain the settlement statement fees to you.

MAIL AWAY/MOBILE NOTARY: The escrow team sends the closing documents to the buyer and seller and includes a return label. A notary will then meet the parties at an agreed location to witness the signing and collect the documents.

The buyers and sellers can also obtain their own notary and mail the documents back to the settlement provider after signing.

It is essential to notify your escrow officer as soon as possible if you will be a “mail away” to ensure they get documents prepared, sent, signed, and received back in time for the close of escrow date. Last-minute “mail aways” could potentially delay the close of escrow.

REMOTE DIGITAL: During this type of closing, also known as remote online notarization, you can digitally access and sign documents using the portal the escrow company or lender provides. This process connects you with a notary using two-way audio and video conferencing technology, which allows you to sign all documents securely and conveniently with an electronic signature.

Agave Title Agency uses a program called Remote Online Notarize, known as RON, to complete documents with online notarization.

Meet RON

WHAT IS IT

Remote online notarization (RON) is equivalent to an in-person, paper-based notarization with a qualified notary. RON will verify your identification and ask a few security questions based on a credit search to approve getting notarized.

WHO IS IT

This type of notarization is preferred for sellers and cash transactions. The lender can be particular and require wet ink signatures for loan docs. Consult with your escrow officer and lender for further information.

WHEN IT IS

RON is available 24/6.

Monday to Saturday, 24hrs a day.

WHERE IS IT

Anywhere you have access to a phone or computer with camera.

WHY USE IT

RON makes signing convenient for you.

After the Closing

You should store all your documents from your home’s purchase in a secure location.

RECORDED DEED: The original deed will be mailed directly to you. Please allow four weeks to receive the deed.

TITLE INSURANCE POLICY: Agave Title Agency will mail your title policy directly to you. Please allow four weeks to receive the policy.

LOAN PAYMENTS: Payments on loans are generally made with monthly statements, online bill pay, or coupon books. Contact your lender regarding any questions about loan, tax, and impound payments.

PROPERTY TAXES: You are now responsible for paying the property taxes when they are due. The final settlement statement provided by your Escrow Officer will reflect what taxes are paid through escrow. Consult your county treasurer’s office for more information/questions on taxes.

Arizona Good Funds Law

Arizona Revised Statute § 6-843 requires that “escrow agents not disburse money from an escrow account until funds related to the transaction have been deposited and available.” The legislation specifies which forms of payments are acceptable for deposit. All availability dates are based on funds deposited into the title company’s bank and are considered business days. A business day is defined as a calendar day other than Saturday or Sunday and excluding most major holidays.

How soon you can get funds deposited:

SAME DAY

• Cash: Special requirements may be needed if necessary to accept cash

• Electronic payment/transfer or wire (preferred method)

NEXT DAY

• Official checks: in-state checks drawn from an FDIC-insured institution

• Cashiers, certified, or teller’s checks

• US Treasury Checks

• Postal money orders

• Federal Reserve, federal credit union, and federal home loan bank checks

• In-state state or local government checks

SECOND DAY

• Other checks (from instate institutions): Personal, corporate, credit union, money market, and traveler’s checks

FIFTH DAY

• Official Checks: Out-of-state checks or drawn from an FDIC-insured institution

• Money orders (except postal money orders)

• Out-of-state or local government checks

• Other checks (from out-ofstate institutions): personal, corporate, credit union, money market, and travelers’ check

To avoid delays of two to seven days or more, please use the following:

• Wire Transfers

• Cashier’s checks

• Certified checks

• Official checks

• Teller’s Checks

Planning your Move

ABOUT TWO MONTHS BEFORE YOUR MOVE

• Create an inventory sheet of items to move.

• Create a moving binder or set up a Google Doc where you can track everything. Print out your moving checklists and put them in your moving binder.

• Organize documents. Keep track of your moving estimates, final bills, and other info you get from moving companies. Add to your moving binder.

• Note all your appointments—to-do lists for connecting your utilities, scheduling inspections, or enrolling your kids in a new school.

• Identify your move. Will you be moving yourself or hiring a moving company?

• Request moving quotes. If moving yourself, get estimates for moving the truck and make a reservation. If using a moving company, hire one with good references. It should be licensed and bonded. Ask about discounts, get estimates in writing and make a reservation.

• Packing materials. Gather moving boxes and packing materials for your move.

• Contact insurance companies. (Life, health, fire, auto.) You’ll need to contact your insurance agent to cancel/transfer your insurance policy. Do not cancel your insurance policy until you have closed escrow on the sale.

• Seek employer benefits. If your move is work-related, your employer may fund moving expenses. Your human resources representative should have information on this policy.

ONE MONTH OUT

• Start packing. Begin packing for your new location.

• Sell or donate unwanted items. This is the perfect time to have a garage sale for stuff you want to get rid of or donate to charity.

• Contact utility companies. Set utility turnoff date, seek refunds and deposits, and notify them of your new address.

• Obtain your medical records. Contact your doctors, physicians, dentists, and other medical specialists who may retain any of your family’s medical records. Obtain these records or plan for them to be delivered to your new medical facilities.

• Fill your prescriptions. If you have to change doctors or pharmacies, you don’t want to be stuck without meds at your new home. Set an appointment to schedule your refills and get a head start finding a new doctor.

• Note food inventory levels. Check your cupboards, refrigerator, and freezer to use up as much perishable food as possible.

• Make travel arrangements. If you’re driving the truck yourself, this can mean planning your actual travel route. If someone else is driving, this is the time to book your flight, hotel, or rental car.

• Plan for transporting pets.

• Tune up your car. Make sure you’re up to date on insurance coverage, mileage checkups, and oil changes.

• Protect jewelry and valuables. Transfer jewelry and valuables to a safety deposit box so they cannot be lost or stolen during your move.

• Contact your internet, TV, utility, and home security providers to arrange for services at your new home.

Planning your Move

TWO WEEKS BEFORE

• Confirm important moving dates with any companies you’ve booked services through.

• Change your address. You know you’re moving, but not everyone else does. Contact all the businesses needing your new address (e.g., banks and insurance companies) and arrange to have your mail forwarded with the post office.

• Plan your itinerary. Make plans to spend the entire day at the house or until the movers are on their way. Someone will need to be around to make decisions. Make plans for kids and pets to be at the sitters for the day.

• Update or cancel services. Notify any remaining service providers (newspapers, lawn services, etc.) of your move.

ONE WEEK BEFORE

• Finish packing.

• Travel items. Set aside items you’ll need while traveling and those needed until your new home is established. Make sure these are not packed in the moving truck!

• Scan your furniture. Check furniture for scratches and dents to compare notes with your mover on moving day.

• Prepare floor plan. Prepare a floor plan for your new home. This will help avoid confusion for you and your movers.

• Discard all flammable products, such as paint and gasoline. Contact your local trash collector about proper disposal.

• Check with the utility companies to verify the connect and disconnect dates after escrow closes.

• Collect all keys and garage door openers. When you move out, you’ll need to hand these over to the real estate agent, new owner, or next tenants.

• Contact your REALTOR® to verify when and where keys to your new home will be available.

A COUPLE OF DAYS

• Give away plants you’re not taking with you.

• Write out an itinerary, emergency numbers, and your new home address. Keep a copy yourself and give copies to the moving company and your family or friends.

• Make sure the moving company has directions to your new home and your phone number if they need to reach you during the move.

THE BIG DAY

• Sign the bill of lading. Once you’re satisfied with the mover’s packing your items into the truck, sign the bill of lading. If possible, accompany your mover while the moving truck is being weighed.

• Conduct your final walk-through. This is your last chance to see if you forgot anything and ensure the place is clean. You won’t be coming back.

GOOD LUCK, AND ENJOY YOUR NEW HOME!

Wire Transfer Fraud

Be Aware! Your real estate transaction is a potential target for sophisticated cyber criminals! Real estate wire fraud is a scam where a hacker poses as one of the parties in a real estate transaction to try to obtain thousands of dollars from your closing costs. Make sure always to contact your escrow officer directly to confirm wire instructions. Verify all contact information with your escrow officer.

Never send money to an account unless you’ve already called your escrow officer to verify the wire instructions.

Don’t Be Spoofed!

The tricky part of this seemly simple verbal phone verification process is that fraudsters have gotten creative! You know the number you are communicating with during the escrow process, and assume you are in the clear when you see it pop up on your phone. This may not be the case.

Unscrupulous telemarketers and scam artists are always looking for new ways to get people to answer their calls. Most phones can screen calls, providing information about the caller when the phone rings. But an increasingly common technique scam artists have been using is to falsify or “spoof” their caller ID information. Phone number spoofing causes the caller ID to display a phone number or other information to make it look like the calls are from a different person or business. While the caller’s information may appear local, the calls are often placed by telemarketers located outside the state or country.

DON’T GET SPOOFED! An incoming phone call never takes the place of an outgoing confirmatory call before wiring funds.

Email Phishing Scams

Email phishing scams attempt to trick people into clicking a link, opening an attachment, or responding to a message so criminals can exploit personal information. The Federal Trade Commission and the National Association of REALTORS® have warned consumers of an email phishing scam in which hackers compromise the email accounts of buyers or sellers. Hackers pose as trusted real estate agents or title insurance companies and attempt to fool their targets into wiring closing funds into the hacker’s account.

We are committed to protecting our clients and taking security measures to prevent unauthorized access to our network. Criminals know secure networks are difficult to access, so instead, they target consumers’ popular web-based email, which is more vulnerable to cyber-attacks.

THE SCAM

Once hackers gain access to a buyer or seller’s unsecure email account, they look for the source of an upcoming financial transaction (e.g., abcagent.com). Hackers use this information to register a fake domain name that mimics the domain name of the legitimate source, making spelling changes so subtle that most people would never notice (e.g., adcagent.com). The hackers then use the fake domain name to email false wire transfer instructions to their target. Consumers who respond with financial information could lose significant sums of money.

AVOID EMAIL PHISHING SCAMS

• Be wary of emails that are unusual, unexpected, or require a change in routine. Look carefully for grammar or spelling mistakes and be leery of those that use threats if swift action is not taken.

• Avoid conveying sensitive information through unsecured email accounts or websites, and be aware that scammers can use the information you share on social networks.

• Do not click on links in emails. Instead, hover your mouse over a link to view its actual web address. If it’s different than what displays in the email, beware.

• Create “fake” answers to password recovery questions, as “real” answers can be discovered. Write down the false answers to help you remember them.

• If anything in an email—even one from a trusted source—seems suspicious, call the sender using a previously known or verifiable phone number. Never reply to the email or information in the message.

Important Phone Numbers

ARIZONA STATE AGENCIES

Attorney General (602) 542-5025

Education, Department of (602) 542-5393

Economic Security, Department of (602) 542-4791

Health Services, Department of (602) 542-1025

Housing, Department of (602) 771-1000

Public Safety, Department of (602) 223-2000

Registrar of Contractors (602) 542-1525

Tourism, Office of (866) 275-5816

BETTER BUSINESS BUREAU

Phoenix/Scottsdale (602) 264-1721

Tucson/SAZ (520) 888-6161

CABLE, INTERNET & HOME PHONE

Cable America (480) 558-7260

Cox Communication Phoenix (602) 277-1000

Tucson/SAZ (520) 884-0133

Comcast/ Xfinity (520) 394-7427

Century Link (866) 963-6665

CHAMBERS OF COMMERCE

Green Valley/Sahuarita (520) 625-7575

Marana (520) 682-4314

Phoenix/Scottsdale (602) 495-2195

Sierra Vista (520) 458-6940

Tucson Metro (520) 792-1212

CITY/TOWN OF... MAIN #

Carefree (480) 488-3686

Cave Creek (480) 488-1400

Chandler (480) 782-2200

Fountain Hills (480) 816-5100

Gilbert (480) 503-6871

Glendale (623) 930-2000

Goodyear (480) 948-7411

Marana (520) 382-1999

Mesa

(480) 644-2099

Oro Valley (520) 229-4700

Paradise Valley (480) 948-7411

Phoenix (602) 262-6011

Sahuarita (520) 822-8800

Scottsdale (480) 312-3111

Sierra Vista (520) 458-3315

South Tucson (520) 792-2424

Tempe (480) 350-4311

Tucson (520) 791-4911

COCHISE COUNTY

General Information (520) 432-9200

Assessor’s Office (520) 432-8650

Treasurer’s Office (520) 432-8400

Recorder’s Office (520) 432-8350

Voter Registration (520) 432-8350

DRIVER’S LICENSES/REGISTRATION

Green Valley (800) 251-5866

Phoenix/Scottsdale Area (602) 255-0072

Tucson Area (520) 629-9808

ELECTRIC

APS (Arizona Public Service) (602) 371-3614

SRP (Salt Water Project) (602) 236-8888

Tucson Electric Power (520) 623-7711

TRICO Cooperative (520) 744-2944

FIRE DEPARTMENTS (NON-URGENT)

Apache Junction (480) 982-4440

Avra Valley (520) 682-3255

Carefree (480) 488-0347

Cave Creek (800) 645-9413

Chandler (480) 782-2120

Corona De Tucson (520) 762-5007

Drexel Heights (520) 883-4341

Fountain Hills (480) 837-9820

Gilbert (480) 503-6300

Glendale (623) 930-4400

Golder Ranch (520) 825-9001

Goodyear (623) 932-2300

Green Valley (520) 625-9400

Mesa (480) 644-2101

Northwest Tucson (520) 887-1010

Oracle (520) 896-2980

Paradise Valley (480) 348-3631

Phoenix (602) 495-5555

Picture Rocks (520) 682-7878

Queen Creek (480) 644-2400

Rural Metro - Phoenix (480) 627-6200

Rural Metro- Tucson (520) 297-3600 Scottsdale (480) 312-8911

Vista (520) 417-4400

Tucson (520) 792-2424 Tempe (480) 858-7200

(520) 791-4512

GAS Mesa Gas (480) 644-2221

Gas (877) 860-6020

LIBRARIES Maricopa County Library (602) 652-3000

Library (520) 791-4010

MARICOPA COUNTY

Information (602) 506-3011 Assessor’s Office (602) 506-3406

POLICE DEPARTMENTS (NON-URGENT)

Apache Junction (480) 982-8260

Carefree (480) 488-3686

Cave Creek (602) 876-1742

Chandler (480) 782-4100

Fountain Hills (602) 876-1869

Gilbert (480) 503-6500

Glendale (623) 930-3000

Goodyear (623) 932-1220

Green Valley/ Sahuarita (520) 344-7000

Marana (520) 382-2000

Mesa (480) 644-2211

Oro Valley (520) 229-4900

Paradise Valley (480) 948-7418

Phoenix (602) 262-7626

Queen Creek (602) 876-1011

Scottsdale (480) 312-5000

Sierra Vista (520) 458-3311

South Tucson (520) 622-0655

Tempe (480) 350-8311

Tucson (520) 791-4444

POST OFFICE

Main Number (800) 275-8777

PUBLIC TRANSPORT

Dial-a-Ride, Phoenix (602) 253-4000

Valley Metro (602) 253-5000

Metro Light Rail (602) 200-0966

Sun Tran BuseS (520) 792-9222

Sun Van (520) 798-1000

Super Shuttle (602) 244-9000

SANITATION/GARBAGE

Area Disposal (480) 515-4300

Curbside Recycling (602) 225-0020

Fountain Hills, City of (602) 237-2078

Glendale, City of (623) 930-2660

Goodyear, City of (623) 882-7887

Parks & Sons (623) 974-4791

Pima County Wastewater Reclamation (520) 724-6500

Phoenix, City of (602) 262-6251

Red Mountain Mgmt (480) 854-9009

Saguaro Environmental (520) 745-8820

Sierra Vista Public Works (520) 458-5775

Tucson Environmental Services (520) 791-3171

Waste Management (800) 796-9696

SCHOOL DISTRICTS

Amphitheater (520) 696-5000

Apache Junction, USD (480) 982-1110

Catalina Foothills (520) 209-7500

Cave Creek (480) 575-2000

Chandler, USD (480) 812-7000

Continental (GV) (520) 625-4581

Deer Valley (623) 445-5000

Flowing Wells (520) 696-8800

Fountain Hills (480) 664-5000

Gilbert, USD (480) 497-3300

Marana (520) 682-3243

Maricopa County School Info (602) 506-3866

Mesa, Public Schools (480) 472-0000

Paradise Valley (602) 449-2000

Queen Creek, USD (480) 987-5935

Sahuarita (520) 625-3502

Scottsdale (480) 484-6100

Sunnyside (520) 545-2000

Tanque Verde (520) 749-5751

Tucson, USD (520) 225-6000

Vail (520) 879-2000

WATER

Apache Junction (480) 982-6030

Avra Water Co-op (520) 682-7331

AZ American Water Co (623) 876-4020

Carefree (480) 488-9100

Cave Creek (480) 488-6616

Chandler (480) 782-2280

Epcor Water (800) 383-0834

Flowing Wells Irrigation (520) 887-4192

Fountain Hills (480) 837-9522

Gilbert (480) 503-6800

Glendale (623) 930-3190

Green Valley Community (520) 625-8409

Green Valley Water Dept. (520) 625-9112

Goodyear (623) 932-3010

Lago Del Oro (520) 825-3423

Las Quintas Serenas (520) 625-8040

Lazy C Water Service (520) 743-0758

Marana, Town of (520) 382-2570

Mesa (480) 644-4444

Metropolitan, Tucson (520) 575-8100

Mt. Lemmon Co-op (520) 576-1538

Oro Valley Water Co. (520) 229-5000

Paradise Valley (480) 348-3518

Phoenix (602) 262-6251

Queen Creek (480) 358-3450

Sahuarita Water Co. (520) 399-1105

Scottsdale (480) 312-5650

Southwestern Utility Management (520) 623-5172

Tempe (480) 350-8361

Tucson, City of (520) 791-3242

Tucson Water (520) 791-3242

Vail Water (520) 647-3679

Winterhaven (520) 327-0111

ZONING

Marana (520) 382-2600

Maricopa (602) 506-3201

Oro Valley (520) 229-4800

Pima County (520) 724-9000

Tucson (520) 791-5550

Contact Information

ESCROW OFFICER

Name: Company: Agave Title Agency

Address: Phone: 877-774-1926 or 520-918-8853

Direct: Email:

AGENT Name: Company: Address: Phone: Email: OTHER Name: Company: Address: Phone: Email:

Notes