Even a smooth Arizona real estate closing can slow down when the title report turns up a surprise. “Title” is simply the bundle of rights to a property. A clear title means the seller can legally transfer those rights, and the buyer will own without hidden claims. When people talk about Arizona title issues real estate buyers and sellers face, they are usually referring to liens, gaps in the ownership chain, or use rights that were never documented. Knowing the usual trouble spots helps you spot problems early and keep your deal on track.
Liens are the most common hiccup. Unpaid HOA assessments, property taxes, judgment liens, or a contractor’s mechanic’s lien can all attach to a home or land. A typical scenario: a homeowner pays the general contractor, but a subcontractor files a lien because it wasn’t paid by the general. Title companies often require lien releases or payoffs before closing. Practical step: ask for final lien waivers on recent renovations, and request an HOA payoff and demand letter as soon as the contract is signed so fees and transfer requirements are clear.
Easements and access rights matter more than many people realize. Utility, drainage, and shared driveway easements are common and not necessarily a problem, but they should be recorded and match how the property is being used. An unrecorded “handshake” agreement about a private road or parking area can create risk for a buyer. Review the title commitment and the recorded maps to confirm access isn’t just permissive use. If a survey shows a driveway crossing a neighbor’s parcel without a recorded easement, consider negotiating a written agreement before closing.
Boundary and encroachment issues often show up as fences, walls, or sheds a few feet over the line. Sometimes the legal description in a deed was copied with an error decades ago, and the mistake followed every later transfer. An updated survey or location report can reveal these mismatches. Minor description errors are often fixable with a corrective deed signed and recorded; more significant encroachments may call for a boundary line agreement or, if necessary, a title insurance endorsement that addresses the specific risk.
Ownership and authority questions can also cloud title. Arizona is a community property state, and spousal joinder may be required to convey certain interests. When property is held in a trust or owned by an LLC, the signer needs proper authority—trust certificates, operating agreements, and resolutions help confirm that. If an owner has passed away, title may require probate documents, affidavits, or death certificates to show who can legally sign. Using a power of attorney? Make sure it is specific enough for real estate and acceptable to the title company.
Old loans that were paid off but never released are another frequent snag. If a prior deed of trust still appears of record, the title company may ask for a recorded release or a “lost note” affidavit from the lender. Start tracking that down early; financial institutions can take time to respond, and closings often hinge on clearing these legacy items.
Pay attention to fixtures and filings that look like personal property but affect real estate. Solar panel leases, water softeners, and security systems sometimes come with UCC-1 fixture filings that must be assigned or terminated. Manufactured homes present a special wrinkle: if the home was never properly affixed to the land, its title may still be tracked like a vehicle, and extra steps are needed to bring it under the property’s title. Clarify these details during due diligence to avoid last-minute delays.
Practical ways to reduce risk: read the title commitment from front to back, not just the premium page. Focus on Schedule B exceptions and ask the title officer to explain anything unclear. If you are selling, gather payoff information, lien releases, HOA documents, and permits early. If you are buying, consider an enhanced owner’s policy and, where appropriate, a survey or title endorsements that match how you plan to use the property. If questions or conflicts surface, St. Clair Law, P.C. can help you review the documents and discuss options so you can decide how to proceed with confidence.
What Is Title Insurance and Why It Matters
Title insurance protects property owners and lenders from financial loss caused by defects in a property’s title that existed before closing but come to light afterward. It’s different from homeowners insurance, which covers future events like fire or theft. Title insurance looks backward. If a hidden lien, recording error, or ownership dispute surfaces after you buy, the policy can cover legal defense and, if necessary, the loss up to the policy limits. That safety net matters in Arizona, where common issues include HOA liens, mechanic’s liens, access and easement questions, and gaps in older records.
There are two main policies. A lender’s policy is usually required by a mortgage lender and protects the lender’s interest up to the loan amount; it lasts until the loan is paid off. An owner’s policy is optional but protects you, the buyer, up to the purchase price (some enhanced policies may adjust coverage as the market changes). Both are paid once at closing—no ongoing premiums. Standard owner’s coverage focuses on recorded defects. Enhanced policies can go further by addressing certain off-record risks, such as some encroachments or forgery, subject to the policy’s terms and exceptions.
Why it matters for Arizona title issues real estate buyers see in practice: the title commitment usually lists exceptions that limit coverage. Easements, CC&Rs, and survey-related matters often appear on Schedule B. If a private road is only a “handshake” arrangement or a prior deed description contains an error, that risk may be excluded unless you address it before closing. The right endorsements can help. Common examples include access endorsements, ALTA 9 restrictions endorsements, and survey-related endorsements when a certified survey is provided. For new construction, some policies offer limited mechanic’s lien coverage based on dates and disbursements. It’s not one-size-fits-all, so matching endorsements to how you plan to use the property is key.
- Read the title commitment early and focus on Schedule B exceptions; ask the title officer to explain anything unclear.
- Confirm authority and vesting: spousal joinder, trust certificates, or LLC resolutions may be required to convey clear title.
- Request HOA payoff/demand letters promptly and verify transfer fees, violations, and assessment status.
- Address UCC fixture filings tied to solar panels, water systems, or security equipment so they are assigned or released at closing.
- If a manufactured home is involved, confirm it was properly affixed and converted so its title aligns with the land.
- Consider a survey or location report; if you obtain one, ask about survey-related endorsements tailored to any noted encroachments or boundary issues.
- Discuss access and utility easements; if access is permissive or unrecorded, negotiate a written easement before closing.
- Keep your owner’s policy in a safe place and notify the insurer promptly if a potential title claim arises.
Coverage always depends on the policy language, the listed exceptions, and the endorsements you choose. Title insurance does not replace due diligence. It works alongside practical steps like verifying payoffs for old deeds of trust, cleaning up legacy liens, and checking that legal descriptions match the ground. If you want help reviewing a title commitment, evaluating exceptions, or selecting endorsements that fit your situation, St. Clair Law, P.C. can discuss options, explain typical implications, and coordinate next steps with your title company so your closing moves forward with fewer surprises.
How to Identify Liens Easements and Encumbrances
Spotting liens, easements, and other encumbrances early is one of the simplest ways to keep a closing on track. Start with the title commitment. Schedule A confirms the parties, the estate being conveyed, and the legal description. Schedule B is where most issues hide. Every exception listed there limits coverage in some way. Open the actual documents referenced by instrument number, not just the summary line. Read the full text of each deed of trust, easement, covenant, restriction, or notice to understand what it does and whether it still matters.
Verify the legal description matches the property on the ground. Compare the description to the recorded subdivision plat or recorded surveys if they exist. If the property is metes-and-bounds, confirm calls and distances line up with a recent survey or location drawing. Mismatches don’t always kill a deal, but they deserve attention so you know what is actually being conveyed.
Liens usually leave a trail you can follow. Check the county recorder’s index for deeds of trust, home equity loans, judgments, mechanics liens, and notices of lis pendens tied to the owner’s name and the parcel number. Look at dates and whether any releases have been recorded. Visit or contact the county treasurer to confirm property tax status and whether there are delinquent taxes or a tax lien sale in the chain. If there is a homeowners association, request a payoff or demand letter that shows assessments, transfer fees, violations, and resale requirements. For equipment like solar panels or water systems, search for UCC fixture filings; those may need to be assigned or terminated before closing. Cities and utilities sometimes record liens for unpaid services or code enforcement, so a quick check with the municipality can prevent a surprise at the eleventh hour.
Mechanics liens deserve an extra look on properties with recent work. In Arizona, contractors and suppliers generally send a preliminary 20‑day notice before they can lien. Recording deadlines apply after work is completed, and may shorten if a notice of completion is recorded. The exact timing can change, so verify current requirements before relying on them. A practical step is to collect final lien waivers from contractors and subs and compare them to invoices, then confirm the title company’s requirements for clearing any recorded items.
Easements are not inherently bad; many are necessary. Utility, drainage, access, and shared driveway easements are common. The key is making sure the recorded easements match actual use. Pull the recorded easement documents and any referenced exhibits or sketches to see the location and width. If a survey or location report is available, compare the easement’s path to fences, driveways, and improvements. If a driveway crosses a neighbor’s parcel without a recorded easement, that is a risk to address before closing. Unrecorded “permission” to cross land can be revoked; a written, recorded easement puts access on firmer ground.
Encumbrances go beyond liens and easements. Covenants, conditions, and restrictions (CC&Rs), architectural guidelines, leases, options, rights of first refusal, and life estates can all limit how you use the property or who can buy it next. Read CC&Rs and their amendments for use limits, design approvals, parking rules, and short‑term rental provisions. If you plan to add an ADU, park an RV, or run a home business, compare those plans to what the documents allow. For income property, review any recorded leases or memoranda for term, renewal rights, and purchase options that could affect timing or price.
A few real‑world patterns help when scanning documents. An old deed of trust with no release often means a payoff happened but the release wasn’t recorded; start tracking it down early because lenders can take time. A solar equipment filing tied to a prior owner usually needs an assignment or termination. A recorded shared well agreement or road maintenance agreement should match how costs are currently split; if it doesn’t, consider whether an update is needed.
If something in Schedule B is vague, ask the title officer to explain the exception and whether an endorsement could address it. Title insurance is useful, but it works best alongside targeted due diligence. When questions get nuanced—like whether an unrecorded access arrangement is reliable or a boundary concern needs a survey—St. Clair Law, P.C. can discuss options and coordinate next steps so the path forward is clearer.
All of this ties back to avoiding the most common Arizona title issues real estate buyers and sellers encounter. Read the commitment thoroughly, pull the underlying records, compare them to the property as it sits today, and resolve what doesn’t line up with how you plan to use the land. That steady, document‑first approach is usually enough to identify liens, easements, and encumbrances before they disrupt your closing timeline.
Resolving Title Defects Before Closing
“Title defect” sounds intimidating, but most problems can be solved with a steady process and the right documents. The aim is simple: deliver marketable title by closing so the buyer gets what was promised and the lender’s requirements are satisfied. Start by reviewing the title commitment early. Schedule B-II shows the exceptions that limit coverage. The “Requirements” section tells you exactly what must be done to clear those exceptions. That roadmap drives the cure.
Liens and payoffs come first because they influence closing funds. For mortgages or deeds of trust, request written payoff statements with per‑diem interest and wire instructions directly from the lender. After closing, the trustee or lender records a release or reconveyance to remove the lien from the record. For HOA assessments, a demand letter identifies transfer fees and any violations that could delay approval. Mechanic’s liens may require sworn lien waivers from contractors and subs, or a recorded release if a lien is already on file. When timing is tight, an escrow holdback sometimes bridges the gap until a payoff or release posts, but only if the title company agrees.
Authority to sign is another frequent checkpoint. In a community property state, spousal joinder can be required even if only one name appears on the deed. If a trust or LLC owns the property, gather the trust certification, operating agreement, and any resolutions confirming who can sign. If an owner has passed away, title may need probate documents, small-estate affidavits where available, and a death certificate. Clearing authority early helps avoid last‑minute document hunts.
Recording or description errors are common and often fixable. A transposed lot number or a missing exhibit can be addressed with a corrective deed or scrivener’s affidavit signed by the parties in the chain. The title officer will usually specify preferred language and signing formalities. Always confirm the corrected description matches the plat or survey and that documents record in the right sequence.
Easements and access deserve careful attention. If a driveway or utility line crosses a neighbor’s parcel without a recorded easement, negotiate a written, recordable easement that reflects the actual use and includes maintenance terms. If the documents exist but don’t line up with the current layout, a relocation agreement or amendment may satisfy the title company and reduce future friction.
Encroachments show up when fences, sheds, or walls drift over a boundary. Solutions range from moving the improvement to recording a boundary line agreement or encroachment agreement that allows it to remain. If timing prevents a physical fix, a targeted title insurance endorsement may be available when supported by a current survey; what’s offered depends on underwriting.
Legacy liens can be stubborn. An old deed of trust with no recorded release often means the loan was paid but paperwork lagged. Track down the lender’s successor and request a release. For equipment tied to the property—such as solar or water systems—ensure any UCC fixture filings are terminated or assigned so the buyer isn’t surprised after closing. Manufactured homes present a separate step: confirm the unit was properly affixed and converted so the home and land transfer together.
When a defect cannot be cured before the scheduled close, options include a negotiated price credit, an agreed extension of escrow, a limited indemnity acceptable to the title company, or a post‑closing curative plan memorialized in writing. Court action, such as a quiet title case, may be necessary for disputes that documents cannot resolve; those matters take time and should be weighed against closing goals and risk tolerance.
Clear, documented communication keeps everyone aligned. Provide the title officer with complete copies of agreements and payoffs, not summaries. Confirm wire instructions verbally with the issuing institution. Keep a single timeline that tracks recordings, deliveries, and any holdbacks. This practical approach fits the real‑world patterns seen in Arizona title issues real estate transactions encounter, where small defects often yield to diligent paperwork and early coordination.
If questions arise about the best cure or how a proposed fix affects coverage, St. Clair Law, P.C. can review the commitment, coordinate with the title company, and draft the curative documents needed to keep your closing moving. The goal is straightforward: remove surprises, align the records with reality, and deliver the title you expect on closing day.
Role of a Real Estate Attorney in Title Examination
Title examination is more than checking boxes on a commitment. A real estate attorney reads the same records a title company reviews, but focuses on legal risk, enforceability, and practical fixes when documents don’t match the property’s reality. The goal is straightforward: confirm what rights are being transferred, identify what could interfere with those rights, and outline steps to cure issues so closing can proceed with fewer surprises.
One core task is tracing the chain of title and confirming who has authority to sign. That can include reviewing older deeds for gaps, verifying spousal joinder where community property may be involved, and confirming that trustees, personal representatives, or LLC managers have proper documentation. If an owner has passed away, the attorney spots whether probate orders, affidavits, or death certificates satisfy the title company’s requirements. Addressing authority early reduces the chance of late-stage document hunts.
Attorneys also interpret the documents behind the summaries on Schedule B. Rather than relying on a one-line exception, they pull the full easement, covenant, plat, or legal description and compare it to how the property is used. If a recorded driveway easement does not reach the public road, or a drainage easement cuts through a planned addition, the attorney can flag the issue and propose a path forward. When a survey or location report is available, it can be matched to the legal description to see whether fences, walls, or improvements align with the record.
Liens and payoffs are handled with an eye toward timing and documentation. A real estate attorney confirms written payoff statements for existing deeds of trust, requests HOA demand letters, and reviews whether tax or municipal liens are present. On properties with recent work, the attorney helps collect final lien waivers and, if a mechanic’s lien is recorded, coordinates a release or structured holdback acceptable to the title company. For equipment tied to the property, such as solar components with UCC fixture filings, the attorney ensures assignments or terminations are prepared so those items do not cloud title after closing. Manufactured homes get special attention to confirm proper affixture and conversion so the land and home transfer together.
Title insurance strategy is another area where counsel adds value. An attorney can explain differences between standard and enhanced owner’s coverage, translate Schedule B exceptions into plain language, and suggest targeted endorsements that fit how the property will be used. Examples include access, restrictions (often called ALTA 9), and survey-related endorsements when supported by current measurements. Where an exception is unnecessary or overbroad, the attorney may provide curative documents or third-party confirmations that allow the title company to narrow or remove it.
When defects surface, the attorney drafts and negotiates curative instruments: corrective deeds to fix descriptions, affidavits addressing scrivener’s errors, releases for old loans that were paid but never reconveyed, and boundary or encroachment agreements with neighbors. If access or utility rights need formalizing, the attorney can negotiate a recordable easement with maintenance terms. In the small subset of disputes that documents alone cannot resolve, counsel can outline options, including whether a quiet title action is appropriate and how that timeline affects closing goals.
For buyers, this work translates into clearer expectations and fewer post‑closing surprises. For sellers, it means assembling payoffs and authority documents early so the transaction stays on schedule. Many of the Arizona title issues real estate transactions encounter—unreleased liens, unrecorded access arrangements, mismatched legal descriptions—respond well to a measured, document‑first approach. If questions arise during your review, St. Clair Law, P.C. can discuss options, coordinate with your title company, and help align the record with how the property is actually used.
