Which form of title evidence is commonly used in Arizona?

In Arizona, title insurance is the most commonly used form of title evidence for real estate transactions. This insurance provides protection to buyers and lenders against losses arising from defects in the title, such as liens, encumbrances, or other issues that may not have been discovered during the title search. Title insurance offers peace of mind by ensuring that the insured party is financially protected in case any claims are made against their ownership of the property after the purchase.

Unlike the abstract and opinion method, which involves a detailed history of the title, title insurance provides a more comprehensive coverage of potential issues that could affect ownership after closing. The Torrens certificate system is not widely used in Arizona; it is more common in certain other jurisdictions. Additionally, a certificate of title is typically just a statement of the title's status and does not offer the same protections as title insurance does.

By utilizing title insurance, Arizona buyers and lenders can confidently proceed with their transactions, knowing that their investment is safeguarded against unforeseen title problems.