Last updated: November 6, 2026
Short answer: Title insurance helps protect against covered title defects from the past—such as certain unpaid liens or forged deeds—discovered after closing. In a typical AAR resale contract, the seller pays for the buyer's owner's policy and the buyer pays for the lender's policy when there is a loan. Always read your title commitment during the review window.
Key takeaways
- There are two common policies: an owner's policy (protects your ownership interest) and a lender's policy (protects the lender's loan).
- Under the standard AAR residential resale contract wording widely used in Arizona, the seller provides an ALTA Homeowner's Title Insurance Policy (or a Standard Owner's Policy if that form is not available) at seller's expense; the buyer pays for the lender's policy when applicable.
- You receive a title commitment before closing and generally have five days after receipt to object to exceptions.
- Premiums are one-time at closing. I do not quote brokerage rate cards here—ask title companies for filed rates and your Closing Disclosure.
Want to talk it through? Book a time to chat with me (30 minutes, 9 AM–7 PM Arizona time).
¡Qué tal! I'm Rosie Armenta. Title insurance is one of those closing-cost lines that feels invisible until something old pops up on the title. If you are buying in Avondale, AZ—especially from another state—knowing who pays and what the commitment shows will save stress before you sign.
What does title insurance cover?
Arizona's Department of Insurance and Financial Institutions (legacy Department of Insurance brochure, still circulated and checked November 6, 2026) explains that title is your bundle of legal rights to own, use and transfer land. A title company searches public records and issues a policy about the condition of title as of closing. Covered problems can include certain unpaid taxes or liens, undisclosed claims from an heir, or other defects listed in the policy. The insurer generally must defend covered challenges and pay covered loss.
An owner's policy is usually written for the purchase price / property value interest and, per that consumer brochure, can last as long as you or your heirs keep an ownership interest. A lender's policy is usually required by the lender for the loan amount and shrinks as you pay the loan down.
How is an owner's policy different from a lender's policy?
| Policy | Who it protects | Typical Arizona resale custom under AAR wording | Paid how |
|---|---|---|---|
| Owner's (often ALTA Homeowner's form) | You, the buyer | Seller pays for the ALTA Homeowner's Policy or, if unavailable, a Standard Owner's Policy | One-time premium at closing |
| Lender's (ALTA loan policy) | Your mortgage lender | Buyer pays when there is a loan | One-time premium at closing |
| Extended coverage / endorsements | Depends on the endorsement | Buyer may purchase at buyer's expense if desired | Added premium |
Parties can negotiate different cost splits in writing. Do not assume a friend's out-of-state custom applies in Arizona.
What is the title commitment, and how long do I have to object?
Before closing, escrow delivers a Commitment for Title Insurance with copies of the documents that will remain as exceptions—CC&Rs, easements, recorded agreements and similar items. Under the standard AAR resale contract language, the buyer generally has five (5) days after receiving the commitment (and after notice of later exceptions) to give the seller notice of disapproved items. Read it. Easements and HOA documents can affect how you use the yard or add a casita.
Seller conveys by warranty deed subject to existing taxes, assessments, covenants, conditions, restrictions, rights of way, easements and other matters of record, as the contract provides. My posts on closing costs when buying in Arizona and seller disclosures in Avondale, AZ pair well with this step.
Who chooses the title company?
DIFI's consumer brochure reminds buyers that real estate professionals cannot dictate which title insurer you must use—you may shop licensed title insurers and agencies. Compare service, turnaround and filed premiums. I can help you understand the commitment; I cannot require a particular company.
Example only: made-up round numbers, not real Avondale prices.
| Example only | Owner's policy (seller-paid under contract) | Lender's policy (buyer-paid) |
|---|---|---|
| Made-up premium | $1,200 | $400 simultaneous-issue figure |
| Who writes the check at closing | Often credited on the settlement statement to seller's side | Buyer's side |
| What to verify | Policy amount matches your deal; effective date matches closing | Loan amount and lender name are correct |
Real premiums come from title companies' filed rates and your actual purchase/loan amounts—ask for a quote, not a blog estimate.
How do I handle title insurance before closing, step by step?
- Confirm who pays for owner's and lender's policies in your signed contract.
- Receive and read the title commitment within your review period.
- Calendar the five-day objection window and send written notice if you disapprove an exception.
- Ask questions about easements, liens or odd requirements before you waive anything.
- Compare the Closing Disclosure premiums to what the contract promised.
- Keep the owner's policy with your closing packet after recording.
Relocating from out of state? I do live video tours, and buying from out of state covers remote closings.
Save this for your escrow checklist.
Related questions I get a lot: Arizona home inspection timeline and HOA fees when buying in Arizona.
Want a second set of eyes on title and closing costs? Book a time to chat with me (30 minutes, 9 AM–7 PM Arizona time), or call or text me at 623-295-5770.
Frequently Asked Questions
Who pays for title insurance in Arizona on a resale home?
Under the widely used AAR residential resale contract, the seller pays for the owner's ALTA Homeowner's Policy (or Standard Owner's if that form is unavailable), and the buyer pays for the lender's policy when there is a loan. Your signed contract controls.
Do I need an owner's policy if the lender has a policy?
Yes, you should strongly consider it. A lender's policy protects the lender, not your equity. Consumer materials from Arizona's insurance regulator explain the difference.
How long do I have to object to the title commitment?
The standard AAR resale contract gives the buyer five days after receipt of the commitment (and after notice of later exceptions) to disapprove items in writing. Confirm the exact wording in your contract.
Is title insurance a monthly bill?
No. The premium is generally paid once at closing for the coverage described in the policy.
Can I shop title companies in Arizona?
Yes. DIFI's consumer brochure says you may choose among licensed title insurers and agencies; real estate professionals cannot force a company on you.
What is an ALTA Homeowner's Policy?
It is a common owner's policy form used in Arizona resale contracts. If it is not available for a property, the standard contract language often falls back to a Standard Owner's Policy.
Does title insurance cover a bad roof or A/C?
No. Those are inspection and warranty/insurance topics. Title insurance addresses covered title defects, not physical condition.
Where do I see the final title premiums?
On your Closing Disclosure / settlement statement from escrow. Compare them with the contract and any quotes you received.
I'm a real estate agent, not a title underwriter or an attorney. I can't clear a title defect or quote a binding premium. Please review your title commitment with the title company and talk with a licensed Arizona attorney about legal questions.
This article is general information, not legal, tax, or financial advice. Please talk with a licensed attorney, CPA, or lender about your situation.
About the author
Rosie Armenta | West USA Realty. Avondale (85392) is her home base, and she helps buyers and sellers across the West Valley in English and Spanish. Book a time to chat with me (30 minutes), or call or text 623-295-5770. Selling? Get a home value report.
Rosie Armenta | West USA Realty | Equal Housing Opportunity
Information was checked on November 6, 2026, from the Arizona Department of Insurance title insurance consumer brochure and the standard AAR residential resale purchase contract title/escrow provisions as summarized in publicly available contract guides. Contract editions and filed title rates can change, so please read your signed contract and ask your title company for current premiums.