PROTECTED PERSONS- When it Comes to Real Estate Transactions...

Arizona Law protects people that may be deemed not competent to handle their own financial affairs. While there are specific legal classifications for Protected Persons, it is possible it may not be evident that a person requires protection, and the laws protect them as well.

A Conservatorship is a Court appointed position for the management of a Minor or Incapacitated Adult’s (the Ward) financial affairs. This is different from a Guardianship, which is appointed by the Court for the personal care and well-being of the Ward. A Conservator has powers and duties similar to a Fiduciary, where a guardian has responsibilities more like that of a parent. Before either of these entities may buy or sell Real Property for, or in the name of the Ward, their Court Appointment must be verified and approved by the Escrow Agent or Title Insurance Underwriter.

Minors can own Real Property, but because a minor cannot legally be held to the terms of a Contract, Title Insurance cannot be obtained where a minor is a principal. If a parent deeds property to a minor, the property can not be sold/title insured until the minor’s 18th birthday.

Vulnerable people are entitled to financial protection even without the legal status noted above. Victims of elder abuse, strong arm intimidation or manipulation due to mental or physical disability are also protected by the law, and anyone complicit in taking advantage of them can be prosecuted.

If someone has obvious difficulty hearing, speaking or understanding; slurs their words or appears sedated, impaired or incoherent; looks afraid or is hesitant to participate, they may have a disability or are being pressured by a family members or others to do something they don’t want to do. People who are in a position to notice these things should intervene or notify the authorities, and can be held accountable if they don’t act.

Principals in a transaction must be competent or have someone legally appointed to act for them, and it is the responsibility of those of us in the industry to be aware of the potential for abuse and act accordingly.

Provided as a courtesy by Equity Title Agency for informational purposes only. Always seek professional legal or financial assistance.

Tom Diller | VP Business Development | Equity Title Agency | [email protected]