Sep 24, 2018

Builder's Risk Insurance


What is Builder’s Risk Insurance?

Builder's risk insurance is a type of insurance policy which covers residential and commercial structures while they are under construction or being remodeled, or renovated. Builder's risk insurance is "coverage that protects a person's or organization's insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause."

Builder’s risk policies are typically available for three types of construction; ground-up new construction, remodeling and renovation..

What is Covered?

Builder’s risk is intended to protect construction sites from loss due to certain types of damage. The exact coverage and limitations varies between providers and policies but generally builder’s insurance will cover against loss from:
     theft,
     vandalism,
     fire,
     damage to equipment,

Additional coverage can be purchased to include protection from loss due to:
     flood,
     windstorm,
     earthquake,
     mudslides,
     construction materials,
     temporary structures,
     fencing,
     scaffolding,
     and landscaping. 

What is NOT Covered by Builder’s Risk Coverage?

     terrorism,
     acts of war,
     government seizure,
     nuclear hazards,
     Injuries or accidents on the job site,
     damage to materials while they are in transit.

If you are thinking about building a custom home in Arizona and have questions about whether builder’s risk insurance is right for you then call Arizona real estate attorney Clint Dunaway at 480-344-4035 or email at cdunaway@davismiles.com

Sep 11, 2018

Appealing an Arbitrator's Ruling


Received an Unfavorable Ruling from an Arbitrator? So what Can be Done?

There are two basic options available you can either appeal the arbitrator’s decision or you can appeal it. If you do not appeal the award then it will  then  become a final judgment. However, if we appeal the arbitration award then your case will continue moving forward in the Superior Court as if the arbitration hearing and arbitrator’s award had never happened.

I.                   LET THE DECISION STAND
A.    Decision Becomes Final- If you do not appeal the arbitrator’s decision within 20 days then that decision will become a judgment against you and in essence the case will be over.

II.                APPEALING THE DECISION
A.    Notice of Appeal- Within 20 days of the Arbitrator’s decision you must file a notice with the Court that states: “Notice from Arbitration and Motion for Trial Setting”. This is extremely important, this is a firm cutoff and we cannot miss this date.

B.     Deposit for Appeal- At the time of filing the notice of appeal of arbitrator's decision, you must deposit with the Clerk $140. If you are ultimately deemed to be the prevailing party then the deposit will be returned to you. However, if you are the losing party then the court will give your deposit to the opposing party.

C.     Downside to Appeal- Downside to Appealing the Arbitrator’s Award:
The case will continue moving forward and with that comes the cost, stress, and time associated with litigating the case. Additionally, as their attorneys’ fees continue to mount it increases your risk exposure if you were to take this case to trial and lose.

Ultimately, the decision whether to appeal the arbitrator’s award can only be made by you. If you are looking for an Arizona attorney to help you appeal an Arizona arbitrator's ruling then call us at 480-344-4035 or email at cdunaway@davismiles.com.

Aug 28, 2018

How to Remove a Wrongfully Recorded Lien?

How Can you Remove an Invalid Lien Recorded Against Your Home?

Occasionally, I am approached by clients who believe someone has recorded an invalid lien against their Property and want to know what they can do to remove it.

A.R.S. 33-420: Discusses the issues of remove groundless or fraudulent liens that have been filed.

A.R.S. 33-420(A): Provides a property owner at least $5000, or treble the actual damages caused by the recording of forged, groundless, misstated, or contains false claims. 

A.R.S. 33-420(C): Provides the property owner $1000, or treble actual damages, whichever is greater, and attorney fees and costs, if he willfully refuses to release or correct such document of record within 20-days from the date of a written request from the owner or beneficial title holder of the real property.

Removing the invalid lien can be someone complex depending upon the unique facts of your situation. So if you believe that a lien have been wrongfully recorded against one of your Arizona properties then contact real estate attorney Clint Dunaway at: 480-344-4035 or email cdunaway@davismiles.com. 


Aug 1, 2018

What is a Deed of Trust?

Arizona Promissory Notes
To fully understand the meaning of the deed of trust, you must first understand the promissory notes.

Arizona homebuyers often think of the deed of trust is the contract they are signing with the lender to borrow money to purchase their home. However, that's actually not the case. It's the promissory note that contains the promise to repay the amount borrowed.

While he promissory note is basically an IOU that contains the promise to repay the loan, the deed of trust is the document that pledges the property as security for the loan. It is the deed of trust that permits a bank to foreclose if you fail to make the monthly payments or breach the loan agreement in some other way.

Deeds of Trust
A deed of trust, pledges real property to secure a loan. In Arizona deeds of trust are used instead of a mortgage.

A deed of trust involves three parties:
  • the trustor, aka, the borrower;
  • the lender, often referred to as the beneficiary in legal documents;
  • and the trustee. The trustee is an independent third-party that holds their poor legal title to the property. The main function of the trustee is to sell the property at public auction if the trustor defaults on payments. Quite often, an Arizona, a real estate lawyer asked as trustee.
Deed of Trust Foreclosure
the judicial foreclosure is the process used with deeds of trust. In a nonjudicial foreclosure, the bank can't foreclose without going to court so long as the deed of trust contains a power of sale clause.

If you are looking for an Arizona real estate lawyer to answer questions you have about a deed of trust, then please call us at 480-344-4035 or email cdunaway@davismiles.com.




Jul 23, 2018

Real Estate Agent's Non-Disclosure of Known Defects

Arizona real estate agents are required to "disclose in writing to all other parties any information the licensee possesses that materially or adversely affects the consideration to be paid by any party to the transaction". A real estate agents failure to disclose a known defect about the property could put their license and jeopardy and expose themselves to financial sanctions.

R4-28-1101 of the Arizona Administrative Code of Professional Conduct: states that real estate agents owe a fiduciary duty to the client and shall protect and promote the client's interest. However, it also states that they are to deal fairly with all parties to the transaction--even the buyer.

What if a Complaint is made to the AZDRE?
If a complaint is made by a party to a real estate purchase that an Arizona real estate agent hid material information from the buyer than a notice will be sent to that real estate agent. The AZDRE will begin a thorough review of the complaint to make a finding of their own. As part of this review process it is highly likely that the AZDRE will ask the real estate agent for all documents pertinent to this situation. For instance, they may ask for all emails, text messages, contracts, addenda to the contract, etc.  

Do Not Simply Ignore the Department's Requests
If you are a real estate agent who has received a request from the AZDRE for documentation do not ignore them! Ignoring the problem will not make it go away. Don't think that by sticking your head in the sand the AZDRE will forget about the alleged violation. In fact, simply ignoring the Department's request for documents can cause you to lose your real estate license AND prevent your from renewing or reapplying for a license!

A.R.S. 32-2153(B)(11): States that "The commissioner may suspend or revoke a license, deny the issuance of a licese, issue a letter of concern to a licensee, issue a provisional license failure "to respond in the course of an investigation or audit by providing documents or written statements."




Don't be this type of an Arizona real estate agent! If you have found yourself in trouble with the Arizona Department of Real Estate then give me a call at 480-344-4035 or email at cdunaway@gmail.com.