Title Insurance
Title Insurance, Explained
A one-time premium that protects your ownership for as long as you hold the property. Here are the questions Virginia buyers ask us most often — answered straight.
- What is title?
- Title is the legal evidence that you have the right to own, use, and transfer a piece of real estate. A clean title means no one else has a competing claim, lien, or unrecorded interest in the property.
- What is title insurance?
- Title insurance helps protect against certain covered title issues, such as undisclosed liens, ownership defects, forgery, recording errors, and other covered matters, subject to the terms, conditions, and exceptions of the policy. It is a one-time premium paid at closing and, unlike most insurance, covers risks that existed before the policy was issued.
- What are the two types of policies?
- A Lender's Policy protects your mortgage lender's interest up to the loan amount and is almost always required to get a loan. An Owner's Policy protects you, the homeowner, up to the purchase price for as long as you or your heirs own the property. Both are issued at closing.
- Do I really need an Owner's Policy if the lender already has one?
- The Lender's Policy only protects the bank. If a title problem surfaces years later — an old lien, a missed heir, a forged deed in the chain of title — the lender is covered, you are not. An Owner's Policy is the only thing that protects your equity and your legal defense costs.
- How much does it cost?
- In Virginia, title insurance premiums are filed with the State Corporation Commission and are based on the purchase price (and loan amount for the lender's policy). It is a one-time premium paid at closing — there are no renewals or monthly payments. We'll provide an itemized quote up front.
- What does a title search actually look for?
- We examine the recorded chain of title at the county courthouse, typically going back 40+ years. We look for prior deeds, mortgages and releases, judgments, tax liens, mechanic's liens, easements, restrictive covenants, and any other recorded document that could affect your ownership.
- What does the policy cover after closing?
- Covered risks generally include: someone else claiming ownership, forgery or fraud in a prior deed, errors or omissions in the public records, undisclosed heirs, unreleased liens, encroachments, and access problems. Your policy also pays the legal defense costs if a covered claim is made.
- What is NOT covered?
- Standard policies exclude problems you create after closing, certain zoning and government regulations, matters a survey would disclose (unless an enhanced policy is purchased), and any exceptions specifically listed in your policy. We will walk you through your exceptions before you sign.
- Can I choose my own title company?
- Yes. Under the federal Real Estate Settlement Procedures Act (RESPA), the buyer has the right to choose the title company. A lender or Realtor can recommend, but cannot require, a specific company.
Still have questions?
Title insurance can feel like a lot. We're happy to walk you through your specific situation in plain English.
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