Seller Guide

SELLER GUIDE

Susan Dawson & Michael Gant

602-550-1330 or 480-263-3606 F 480-837-9103 E [email protected]

MCO REALTY 9617 N. Saguaro Blvd., Fountain Hills, AZ 85268

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Introduction Behind any successful team, you will usually find drive, excellent work ethic, experience, total commitment and focus from a team who will do whatever is required to help their clients reach their goals. Michael and Susan are no exception! Michael and Susan have been in the Scottsdale area since the early 70’s. They know the area! Inspired by their love of Real Estate, Michael and Susan have more than 25 years of combined Real Estate experience. Michael and Susan specialize in primary residences, second homes, lots and foreign home purchases. Michael and Susan’s strong work ethic, coupled with their enthusiastic attitude, has gained a reputation as agents in great demand. For those planning on buying or selling a home, or considering a move to the Scottsdale area, their knowledge and credibility help prospective buyers and sellers make the most informed Real Estate decisions. Making business a pleasure!

Michael Gant (480) 263-3606 ▪ [email protected] │ Susan Dawson (602) 550-1330 ▪ [email protected]

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Arizona History • Statehood: February 14, 1912

Population and Geography Population: 6.5 Million (2008 Estimate) State Capitol: Phoenix Largest Cities: Phoenix, Tucson, Mesa, Glendale and Scottsdale Border States: California, Colorado, Nevada, New Mexico, Utah State Size: 113,909 Square miles

State Symbols State Motto: Ditat Deus (“God Enriches”) State Nickname: Grand Canyon State Songs: “Arizona March Song” and “Arizona” State Flower: Saguaro Cactus Blossom State Gem: Turquoise State Tree: Palo Verde State Bird: Cactus Wren State Fossil: Petrified Wood State Mammal: Ringtail State Reptile: Arizona Ridge-Nosed Rattlesnake State Fish: Apache Trout State Amphibian: Arizona Tree Frog

Major Industries in Arizona Manufacturing: Arizona manufactures everything from food products to microchips, with major

manufacturing facilities found primarily in the Phoenix and Tucson areas. Mining: Gold, silver and other ores have been mined in Arizona for more than a century, but the

state’s real claim to fame is copper. In 2007, more than 60% of all copper mined in the United States come from Arizona.

Tourism: More than 37 million tourists visited Arizona in the year 2008 alone leading to more than 170,000 jobs in areas like travel and lodging. This makes tourism one of the state’s largest industries.


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Arizona History, Continued... Did You Know Out of all the states in the U.S., Arizona has the largest percentage of it’s land designated as Indian

Lands. The “Five C’s” of Arizona’s economy are: Cattle, Copper, Citrus, Cotton and Climate. More copper is mined in Arizona than all the other states combined, and the Morenci Mine is

the largest copper producer in all of North America. Covering 18,608 sq miles, Coconino County is the second largest county by land area in the 48

contiguous United States. The worlds largest solar telescope is located at Kitt Peak National Observatory in Sells, Arizona. Bisbee, Arizona is known as the Queen of the Copper Mines because during it’s heyday, it pro-

duced nearly 25% of the world’s copper and was the largest city in the Southwest between Saint Louis and San Francisco.

Billy the Kid killed his first man, Windy Cahill, in Bonita, Arizona. Pioneer filmmaker, Cecil B. DeMille originally traveled to Flagstaff to make his first film, but he

arrived there in the middle of a storm and decided to move operations further west, to Hollywood. His film, The Squaw Man (1914), went on to be wildly successful, launching the fledgling industry and establishing Hollywood as the movie capital of the world.

Arizona grows enough cotton each year to make more than one pair of jeans for every person in the United States.

In 1912, President William Howard Taft was ready to make Arizona a state on February 12, but it was Lincoln’s birthday. The next day, the 13th, was considered bad luck so they waited until the following day. That’s how Arizona became known as the “Valentine State.”

When England’s famous London Bridge was replaced in the 1960’s, the original was purchased, dismantled, shipped stone by stone and reconstructed in Lake Havasu City, Arizona, where it still stands today.

Mount Lemmon, in Santa Catalina Mountains, is the southern most ski resort in the United States. Arizona has 3,928 mountain peaks and summits - more mountains than any one of the other

Mountains States (Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming). Montezuma never visited Montezuma National Monument - he was born 100 years after the

prehistoric dwelling was abandoned. The monument was misnamed for the Aztec emperor when it was rediscovered in the 1860’s

Oraibi, a Hopi village located in Navajo County, Arizona, dates back to before A.D. 1200 and is reputed to be the oldest continuously inhabited community in America.

Built by Del Webb in 1960, Sun City, Arizona was the first 55-plus active adult retirement communi-ty in the country.

This list was compiled and researched by the Arizona Office of Tourism and the Arizona Centennial Commission staff with the assistance of Marshall Trimble, Arizona’s Official State Historian.


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Marketing MCO Realty spends over $100,000 per year on advertising. How many Realtors do you know will do that? Professional color brochure on site Sign in yard, if allowable Professional market analysis Home is listed in MLS Lockbox on property Virtual tour of home Professional photos of home Property is advertised through real estate search engines Extensive internet coverage and listing syndication Monitoring of lock box with feedback from showing agents Open houses Monthly open house tour Updated market reports, monitoring feedback and showings to stay competitive For vacant properties, we do weekly checks to make sure no vandalism has occurred and property

looks its best


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Print Media Homes & Land - Prints 35,000 copies of it’s Real Estate listing magazine every four weeks, distributing it to over 700 locations frequented by buyer Valley-wide. This includes all major supermarkets: Safe-way©, Alberstons™, Bashas™ and Fry’s Marketplace™. The company also targets buyers with distribu-tion to hotels and resorts, restaurants, Real Estate offices, mortgage companies, Sky Harbor Interna-tional Airport and more. Homes and Land is distributed “door to door” to businesses in high traffic, public locations, direct mailed free to buyers and sellers on request, and is the only Real Estate publica-tion to have an online, interactive digital version of it’s magazine. Arizona Republic - Arizona’s largest newspaper. Azcentral.com is the best place to view Phoenix area real estate listings. Search thousands of listings, including single-family homes for sale, foreclosures, townhomes, condos and new construction. Our real estate search, powered by HomeFinder.com, is updated hourly with the latest new listings, price reductions and open house information. Direct Mail Campaign - Post cards are sent out the immediate area notifying your neighbors. We put a QR code on every card so every recipient will be able to take a virtual tour of your home from their computer.


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Online Marketing According to the National Association of Realtors, over 80% of buyers started their home search on the internet. Given the internet’s convenience and round-the-clock accessibility, its not surprising that many home buyers first look online for properties and information when beginning their search. A small but growing number of home buyers are taking advantage of social networking Web sites like Facebook, and video hosting web sites such as YouTube, when searching for a home. We send your home out to... Realtor.com - Is the most visited Real Estate on the Internet (According to National Association of Realtors), attracting an average of nearly 9 million unique visitors and more than 30 million total visits every month. Maps and school info is available from this site. VisualShows.com - VisualShows.com creates unique property flyers for all your listings to achieve maximum online exposure! Our listing pages place your properties on the top search engines auto-matically and create multiple online billboards which generates high exposure for you! Trulia - Is the fastest growing online real estate resource, empowering buyers, sellers and renters with smarter tools to help them in the buyer process. Yahoo Real Estate - Frequently blows the competition out of the water with its extensive amount of listing information and resources. Property Nut - Every day listings are submitted to search engines like Google, Yahoo and BING and syndicated to 20+ highly searched real estate websites.


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Online Marketing Partners

Professional Flyers


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40 Tips to Help Sell Your Home Outside 1. Invest in landscaping where it can be seen at first sight. 2. Cut back overgrown shrubbery that looks scraggly or keeps light out of the house. 3. Paint your house if necessary. This can probably do more for sales appeal than any other factor. 4. Inspect the roof and gutters. 5. Consider putting flowers outside, near the front door. 6. Repaint the front door.

Kitchen 7. The kitchen is the most important room in the house. Make it bright and attractive. If dull, paint cabinets and put up perky new curtains. 8. Clean the ventilating hood in the kitchen. 9. If the kitchen floor is badly worn, put down new flooring. Replace any broken or chipped tiles. 10. Remove any appliances that you keep on your counters. Clean counters make the room look larger.

Living Areas 11. Have all plaster in top shape. 12. Check ceilings for leak stains. Fix the cause of the damage, repair the ceiling, and paint. 13. In painting and redecorating, avoid offbeat colors - stick to easy-to-work-with pastels inside. 14. If you have a fireplace, clean it out and lay in some logs to make it look inviting. 15. Wash windows, 16. Replace broken glass, 17. Mend torn screens. 18. Check to see that all windows will open and close. 19. Replace burned-out light bulbs. Use brighter light bulbs. 20. Make sure every light switch works. 21. Make the floors shine. 22. Straighten up the closets - get rid of excess items. Use air freshener to eliminate musty odors. Lubricate any sticky or squeaking doors. 23. For sliding doors that stick in their tracks- rub the tracks with paraffin or candle wax. Bathroom 24. Repair dripping faucets. 25. Use special cleaning products to remove stains from toilets, bathtubs, sinks and showers. 26. If sink and bathtub drain too slowly, unclog them.

Basement, Attic and Garage 27. Clean out attic, basement and garage. Dispose of everything you are not going to move. Package everything you wont need until you're settled in your new home.


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40 Tips to Help Sell Your Home, Continued... When Your House is Being Shown 28. Keep room draperies and shades open to let light in. It makes the room appear larger. 29. Have your home well lighted during the showing. 30. At night, turn on the porch light and outdoor lighting in back if you have it. 31. Neatness makes a room look bigger. Avoid clutter. 32. If possible, leave your furniture and rug in the house for showing. 33. Avoid having dirty dishes in the sink or on the counters. 34. Keep any toys in the children's rooms. 35. Keep radio, stereo and TV off or turned down. 36. Take your family away if your broker is holding an Open House. 37. Refer direct inquires you receive about your house to your Agent and take advantage of their professional skills in selling your home. 38. Don’t mention furniture or furnishings you wish to dispose of unless asked. 39. Take pets outdoors when your house is being shown. 40. Let the Agent show your house, and don't tag along.


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The Life of a Real Estate Transaction


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The Home Inspection In most cases, real estate contracts allow a physical inspection period for the buyer. This is the time to identify existing and potential problems in the property. For most of us, this is a nerve racking process we are not knowledgeable about. This is the time to turn to a professional home inspector. Home inspectors identify problems and assist in promoting and facilitating communication with the seller. This is a sizeable investment you are making, possibly the largest in your life. You may save substantial amounts in the future by investing a small amount now.

Here are several details covered in a home inspection: Structural: Home inspection organizations have set standards on areas of the home that the inspector looks at to determine the integrity of the essential internal and external structural components. Inspectors are not structural engineers, but can identify visual defects in areas requiring immediate repairs. Electrical: Do all the outlets work? Does the house use fuses or is there a breaker box? Are there any signs of fraying on the wiring? Plumbing: Are there any leaks or annoying drips? Are all the mechanical systems and fixtures working properly? Built-In Appliances: Are they functioning properly? Safety Hazards: Inspectors are not environmental specialists, but they can identify a number of safety hazards and dangerous conditions. Miscellaneous: Other items may or may not be included in standard home inspection. Some may be septic systems, roofs, drainage, wood decks, patios or other exterior structures. Normally NOT Included: Termite, radon, geological or land subsidence surveys and environmental or pollution inspections should be completed separately for your own protection.

Closing Cost Guide The SELLER can generally expect to pay for: Owner's title insurance premiums Real estate commission 1/2 of the escrow fee (except VA)* Any loan fees required by buyer's lender (according to contract) Payoff of all loans Interest accrued to lender being paid off, statement fees, reconveyance fees and any

prepayment penalties Termite work (according to contract) Home warranty (according to contract) Any judgments, tax liens, etc. against the seller Recording charges to clear all documents of record against seller Tax proration (for any taxes unpaid at time of transfer of title) Any unpaid homeowners' association dues Any bonds or assessments (according to contract) Homeowners’ association transfer fee and disclosure fee (according to HOA addendum) Any and all delinquent taxes

*For VA loans, the entire escrow fee must be paid by the SELLER

The BUYER can generally expect to pay for: Lenders title policy premiums 1/2 of the escrow fee (except VA) Document preparation (if applicable) Notary fees (if applicable) Recording charges for all documents in buyers' names Homeowners' association transfer fee All new loan charges (except those required by lender for seller to pay) Interest on new loan from date of funding to 30 days prior to first payment date Home warranty (according to contract) Insurance premium for first year All pre-paids Termite inspection* Two months of homeowners’ association dues up front

*Termite inspection is placed in escrow by the BUYER but the cost is negotiable

This list is not necessarily all-inclusive and all the services for which payment may be allowable or non-allowable may not be identified.


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20 Reasons for Title Insurance A fire can destroy the house and improvements thereon. But the ground is still there. A defective

title could be cause to take away that ground from an owner. Title Insurance protects against such loss.

There may be a forgery in a deed or mortgage within the chain of title. A person under age may have signed a deed or a mortgage. A “medically proven incompetent” person may have executed a deed or mortgage. A deed or mortgage may have been executed by a power of attorney after its termination and

would therefore be void. A person, other than the owner, but with the same name as the owner, may have made a deed or

mortgage on the property. The testator of a will might have had a child born after the execution of the will. That would entitle

the child to claim his or her share of the property. A deed or mortgage may have been procured by fraud or under duress. Title transferred by an heir may be subject to a federal estate tax lien. An heir or other person presumed dead may appear and recover the property or an interest. A judgment or levy upon which the title is dependent may be void or voidable due to a defect in

the proceeding. If claims arise, title insurance covers attorney’s fees and court costs. Title insurance evidences clear title when an individual is ready to sell or buy property. Investors can eliminate delays and technicalities when passing title to another. Buyers are reimbursed for the amount of losses covered by title insurance. A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy. Title insurance is paid in full with one premium for as long as an individual or the heirs own the

property. Only title insurance protects against claims made by non-existent or divorced spouses. There may be a defect in the recording of a document which your title is dependent. With theft identity on the rise, claims have risen dramatically over the last decade.

Information courtesy of Grand Canyon Title Agency. For more information, please contact Adam Saunders at

(480) 510-0953, [email protected] or visit www.iWantYourEscrow.com.


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Arizona Tax Calendar

Important dates in the Arizona tax calendar: January 1: Current taxes become a lien not yet payable. First day to file exemption with the assessor’s office. February 1: On or before this date, assessor is required to notify property owners of any increase in taxes or of delinquent taxes for previous years sold at auction. (three year redemption period) February 15: Last day to file an appeal with the assessor’s office if the property owner feels that the values are excessive or that they violate the limitations of increases. February 28: Last day to file exemptions. March 1: Second half taxes for the previous year, are due and payable. May 1: Second half taxes for previous year, are now delinquent. July 25: Tax roll is certified. September 15: Tax statements are mailed from mid-September to October. October 1: First half of current year taxes are now due and payable. You may pay for the full year at this time. November 1: First half of current year taxes are now delinquent.


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Tax Deductible Moving Expenses Listed below are items that may be tax deductible when you meet the IRS’s requirements for a qualifying move. These are general suggestions and should be reviewed by your accountant. The expense of having your furniture and household items shipped or stored for up to 30 days

including the cost of packing and insurance. Select costs from the sale of your previous home, and the purchase of your new one, are

deductible - costs such as legal fees, real estate commissions, title fees state transfer taxes and appraisal fees.

These expenses can be deducted a few different ways - the most common is to count them as moving expenses up to the allowable limit.

The cost of transporting your family to the new town including food and lodging. The expenses from trips to the area of a new job to shop for a home - this cost is not contingent

on a successful purchase. If you have not found the perfect property, or it is not ready when you arrive, the cost of lodging

and 80% of your food up to 30 days is deductible.


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Moving Checklists Previous Residence PREPARING FOR THE MOVE: ___Leave keys and garage openers ___Travel funds (cash and checks) ___Defrost refrigerator ___Prepare pet transportation ___Personally transport valuables and jewelry ADDRESS CHANGES: ___Bank accounts ___Forward address at post office ___Credit cards ___Magazines/publications CANCEL UTILITIES: CHECK FOR REFUNDS ___Electric/gas ___Telephone ___Water ___Garbage removal ___Cable ___Misc. bottled water, propane, etc. DOCUMENTS TO OBTAIN: ___School transcripts ___Medical records ___Dental records ___Veterinary records

New Residence ADDRESS CHANGE: ___Ask post office to hold mail for your arrival ACTIVATE UTILITIES: ___Electric/gas ___Telephone ___Water ___Garbage removal ___Cable ___Misc. bottled water, propane, etc.

SCHOOLS, LICENSES AND SERVICES: ___Register children in school ___Register to vote ___Register your car ___Driver’s license (apply or new address) OBTAIN NEW MEDICAL SERVICES: ___New doctor ___New dentist ___New vet


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Easy Guide to Moving What to accomplish one month prior to your moving date: Let everyone who’s anyone know that you’re moving. This entails sending out the “I’m moving” notices. These cards should provide your new mailing address and contact information. Send these to friends, family, doctors, magazine subscriptions, insurance companies, banks and credit card companies. (Obtain the change of address forms from the post office and let them know your new location) Get packing! This means boxing up the things you don’t use on a daily basis. Choose a moving company. Make certain that whomever you choose is licensed, bonded and insured.

What to accomplish two weeks prior to your moving date: Notify utility companies. It is best to have services at your new residence turned on the day before you are to move in and services at your old residence shut off the day after you move. This should eliminate the chances of any problems. Remember to contact all utility companies! Phone companies, both local and long distance Sanitation company Water, electric and gas Cable company

What to accomplish one week prior to your moving date: Finish packing! Label each box with the contents and the room in which the items were taken from. This will

alleviate much of the burden when you begin unpacking.

What to accomplish the day before your moving date: Obtain keys for your new residence. Confirm the move with real estate agents and the moving company. Do a final walk-thru, making sure you have not left anything behind.


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Moving Your Pets Your pets need special care and handling to get to their new home. Here are a few tips on moving them. Fish: It is not practical to move fish in their aquarium. A gallon of water weights eight pounds. Plan on giving the fish away and restock the aquarium when you arrive at your new home. Cats and dogs: Cats and dogs can either be shipped by air or taken along in the family car. If you are flying to your new destination, your cat or dog can ride in the baggage compartment. You pet will need a health certificate from your vet. Call the airline in advance to find out about special boxes they may have. If you are going to make a container for it, make sure it complies with the airline’s regulations. It is a good idea to put a piece of clothing with your scent on it in the animal’s box so it will feel more at home. If you aren’t flying with your pet, but are having it shipped by air, make sure someone is on the other end to pick it up at the airport and take care of it until you arrive. The easiest way is to let a kennel do it for you. Many kennels can take the pet several days before you move (keeping it out of your way), or take it to the airport and arrange to have a kennel on the other end pick it up and care for it until you arrive. Think twice about taking your dog or cat with you on a long, cross-country trip. Not only can animals get carsick, but being cooped up in a car all day can make them nervous and upset. They must be fed and have plenty to drink (make sure you take along their water dish), they have to make rest stops, and they must be on a leash for those times when the car door is open. Some motels and hotels don’t allow pets, other have special facilities for handling travelers’ pets. Call in advance and check out the available literature on hotels along your route. National chains usually publish such information. Smaller animals: Hamsters, birds, mice and such, can be transported in the family car fairly easily. Make sure they have plenty of food and water in their cages and are out of drafts or extreme tempera-tures. Cover cages with a cloth to keep them quiet and restful. Your vet or pet store are also valuable sources of information.


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Moving Your Plants A true test of your green thumb! You can take your plants with you when you move without harming them.

Here are some tips: Call your local US Department of Agriculture to check on regulations if moving from one state to

another. Many states have restrictions on certain kinds of plants to prevent importing bugs or pests that can destroy valuable cash crops in that state.

A couple of weeks before you move, prune plants to facilitate packing. Consult a florist or a plant

book for instructions. A week before your move, grab an ordinary black plastic bag and a buy/pest strip, conventional

flea collar, or bug powder. Place the bug repellent item in the bag along with the plant you plan to transport. Close the bag and place in a cool area overnight. This will kill any pests on the plant or in the soil.

The day before the move, place the plants in cardboard containers. Make sure they are held in

place by dampened newspaper or packing paper. Use paper to cushion the leaves and place a final layer of wet paper on top to keep them moist.

On the day of the move, set the boxes aside and mark “DO NOT LOAD” so the movers won’t take

them on the moving van. On the day you leave, close the boxes and punch air holes in the

top and load into your car. When on the road, be careful where you park your car. Look for shaded areas in the summer and a sunny spot in the winter.

Unpack the plants as soon as you arrive at your destination.

Remove plants through the bottom of the box in order to avoid breaking their stems. Do not expose the plants to too much sunlight at first. Let them get acclimated to more light gradually.

If you must leave your plants behind, then take cuttings. Put

them in a plastic bag with wet paper towels wrapped around them.

Annual Sales Report for 2011


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Glossary Addendum: Something added. A list or other material added to a document, letter, contractual agreement, escrow instructions, etc. (see also: Amendment). Adjustable Rate Mortgage (ARM): A mortgage with an interest rate that changes over time in line with movements of an index. Adjustment Period: The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one-year ARM which means that the interest rate can change once a year. Agency: Any relationship in which one party (agent) acts for or represents another (principal) under the authority of the latter. Amortized Loan: A loan that is paid off in equal installments of principal and interest rather than in interest only payments. Amendment: A change, either to correct an error or to alter a part of an agreement without changing the principal idea or essence. Annual Percentage Rate (APR): The total finance charge (interest, loan fees, points expressed as a per-centage of the loan amount). Application Fee: A fee to cover some of the charges of the loan process. Appraisal: An opinion of value based upon a factual analysis. Appraisal Fee: A fee charged by the lender for obtaining an appraisal. Assessed Value: The value placed on property by the Assessor’s Office as a basis for taxation. Assumption Of Mortgage: A buyer’s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to assume the loan. Balloon Payment: Paying off a note with a final installment which is larger than the preceding payments. Built-Ins: Commonly stoves, ovens, dishwashers and other appliances framed into the building construction and not removable. Cap: The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the loan.


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Glossary, Continued... CC&R’s: Covenants, Conditions and Restrictions. A document that controls the use, requirements and restrictions of a property. Chain of Title: A history of conveyances and encumbrances affecting the title of real property. Close of Escrow: The date the title passes from seller to buyer and documents are recorded. Closing Statement: The financial disclosure statement that accounts for all of the funds received and distributed at the closing of escrow, including prorations for taxes, hazard insurance and mortgage insurance. Comparable Sales: Sales that have characteristics similar to the subject property. Often referred to as “comps.” Conventional Mortgage: A mortgage or deed of trust not obtained under a government insured program. A loan provided by investors. Convey or Conveyance: The process of transferring ownership of property from one party to another. Deed: Actually, any one of many conveyance or financing instruments, but generally a conveying instrument, given to pass fee title to property upon sale. Deed of Trust: An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor), in favor of the lender (beneficiary), and reconveyed upon payment in full. Disclosure: To make something known. All disclosures should be made in writing when dealing with real property. Discount Points: A negotiable fee paid to the lender to secure financing for the buyer. Discount points are up-front interest charges to reduce the interest rate on the loan over the life, or a portion, of the loan’s term. One discount point equals one percent of the loan amount. Due On Sale Clause: An acceleration clause that requires full payment of a mortgage or deed of trust when the secured property changes ownership. Earnest Money: A deposit made by the buyer as a sign of good faith. Easement: A right or interest limited to a specific purpose that one party has in the land of another.


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Glossary, Continued... Encumbrance: Anything that affects or limits the ownership of real property, such as mortgages, liens, easements or any other restrictions. Escrow: The deposit of funds and documents with a neutral third party. The third party carries out the provisions of a contract or agreement. Escrow Fee: A fee charged by the title company for escrow services. Exclusive Right to Sell: A written agreement between owner and agent giving agent the exclusive right to sell a property and collect a fee for a set period of time. Fair Market Value: A price that would probably be negotiated by a willing seller and a willing buyer in a reasonable amount of time. Usually calculated by comparable sales. Hazard Insurance: Casualty insurance protecting real property against fire, some natural causes, van-dalism, etc., Impounds: A trust type account set-up by lenders for the accumulation of borrower’s funds to meet periodic payments of taxes, mortgage insurance premiums and/or future insurance premiums. Lien: An encumbrance against property for money, either voluntary or involuntary. All liens are encumbrances but not all encumbrances are liens. Loan Origination Fee: Typically 1% of the loan amount, charged to buyer by lender. Mortgage: A legal document that provides security for repayment of a promissory note. Mortgagee’s Title Policy: Required by lenders to insure that their lien is valid. Also required for second mortgages and does not protect the buyer. Owner’s Title Policy: Insurance for the owner of the property, rather than a lien holder. Insures the buyer against loss due to any defect of the title not excepted or excluded from the policy. PITI: A payment that includes Principal, Interest, Taxes and Insurance. Points: Charged by the lender and paid by the buyer or seller. One point is equal to 1% of the purchase price. Power of Attorney: A written instrument, an authority by which a principal enables another (attorney in fact) to act for him.


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Glossary, Continued... Power of Attorney: A written instrument, an authority by which a principal enables another (attorney in fact) to act for him. Quit claim Deed: A deed operating as a release; intended to pass any title, interest or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title in the grantor. Recording: The filing of documents affecting real property with the county recorder for public record. Recording Fee: Charged by the County Recorder to record documents in the public records. Charges are based on the number of pages recorded. Survey: Shows easements, encroachments, locations of improvements, lot size, etc. May be required by a lender, a buyer, or a title company. Tax Service Contract: The annual service of reporting to a lender the tax amounts due and delinquent on the encumbered property during the life of a loan. Termite Inspection: Required by lender or buyer to show property free and clear of termites or other wood-destroying organisms. Time is of the essence: Demands punctual performance in fulfilling the terms of the contract/agreement. Title: The evidence one has of right to possession of land. Title Insurance Policy: An insurance policy that protects the investment or equity of the buyer, lender or owner in their real property interest. Underwriting Fee: Fee charged by a lender to underwrite the loan. VA Funding Fee: Veteran’s Administration charge for originating a VA loan. Warranty Deed: A deed used in many states to convey fee title to real property wherein the seller (grantor) warrants the interest being conveyed. Warehouse Fee: Fee charged by the lender to hold the loan locally before selling it in the secondary mortgage market to an investor. Zoning: The division of a city or a county by legislative regulations into areas (zones), specifying the uses allowable for the real property in these areas.


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Helpful Contact Information


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Helpful Contact Information, Continued...


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Helpful Contact Information, Continued...


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Greater Phoenix Area Freeway Map

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Documents

Seller Guide