1. Why do I need title insurance?
Title Insurance protects the homeowner and/or lender against certain claims and loss. As a homeowner, you want to be assured that interest is protected. If such a claim or loss arises on your property, you will be able to fall back on your title policy to defend and pay for the defense of the claim or loss. As a lender, title insurance will protect the lenders interest in your property. Most lenders will require that title insurance be issued as part of the loan approval process.

2. If the current owner has a title insurance policy and the deed to the property, why do I need it purchase a new policy?
Title insurance will only protect the policy holder and his/her heirs. If a claim or loss should occur, you will be responsible to pay for and defend your own interest in the property. Such claims and losses can be very expense to defend, but in the event that the claim is valid, it can cost a substantial amount to settle and in some case can even cost you your property.

3. Why are property taxes prorated?
Property taxes in the state of Utah are assessed annually and due on November 1st, therefore, each purchase transaction will have property taxes that will need to be prorated. Whenever possible, taxes are prorated off the current years assessment.

4. What is seller financing?
Whenever the seller carries a personal note for any portion of the purchase price, this is considered to be “seller financing”. Sundance Title can assist both the Buyer and the Seller by creating the documents necessary to complete such a transaction.

5. What are Restrictive Covenants/CC&R’s?
Restrictive Covenants/CC&R’s are provisions whereby a owner of the land prohibits certain restrictions of use, occupation and improvements on the land.

6. How can a bankruptcy effect the sale, purchase or refinance of my property?
If an individual is currently in a bankruptcy, a formal court order or a formal abandonment of the property is required before closing can take place.

7. What is a “short sale”?
This is when a seller is in dire straights and owes more to the properties lien holders than he can sale his property for. The lien holders agree to accept a lessor amount than what is owed in order to accommodate the sale and avoid foreclosure proceedings.

8. What is the difference between joint tenancy and tenants in common?
Joint Tenancy is when two or more individuals hold title jointly with equal rights to share in the enjoyment during their respective lives with the provision that upon the death of a joint tenant, his share in the property passes to the surviving tenants, and so on, until the full title is vested in the last survivor.
Tenants in Common is when two or more individuals hold title, with interests that need not be equal, and in the event of the death of one of the individuals, no rights of survivorship in the other owner exists. Upon the death of a tenant in common, the deceased’s interest must go through probate.

9. Can I split my property and only sell a portion of it?
Yes, if the division has been approved by the city which the property lies in and a surveyed description of the new parcel is available.

10. Can I bring in a personal check for my closing costs?
If a person check is used to cover your closing costs, final recording and disbursement will not take place until such time as the check as cleared the bank. In accordance with the State of Utah Insurance Department Bulletin 89-7, cashiers checks or money orders need to be on deposit for only 24 hours before final recording and disbursement occur. Cash and wire transfers are considered collected or cleared funds and final recording and disbursement occur immediately upon deposit.