Frequently Asked Questions
- What is a Title Search?
- What is Title Insurance?
- A Title Search was performed - why do I need Title Insurance?
- Do I pay an annual premium for Title Insurance?
- Why should I have Owner's Title Insurance when I buy a home?
- Why do I need a new Title Insurance policy when I refinance my mortgage?
- How can Real Estate be titled in Virginia?
- Back to Top What is a Title Search?
The title Search is the first step in obtaining Title Insurance. It is a detailed examination of the historical records concerning the property. These records include deeds, civil and probate court records, tax records, and more.
The purpose of the title search is to verify the sellers right to transfer ownership and to discover any claims, errors, assessments, debts, or other burdens or restrictions on the property.
- Back to Top What is Title Insurance?
It is insurance that protects against loss if a covered defect is found on your title. Many of these problems might not be discovered in a routine title search.
- Back to Top A Title Search was performed - why do I need Title Insurance?
Title Insurance provides a "safety fence" around your property. Having title insurance can save you money, time, trouble—even your home!
- Back to Top Do I pay an annual premium for Owner's Title Insurance?
No - it's a one time fee for as long as you own the property if you acquire Owner's Title Insurance. For Lender's Insurance, you pay a premium to cover each lender.
- Back to Top Why should I have Owner's Title Insurance when I buy a home?
The Owner's Title Insurance policy not only protects you against losses due to title claims covered by the policy, it also pays for the attorney's fees and costs in defending the title. And, real estate litigation can be very expensive. You are covered under the policy for as long as you own the property, and also for liability after you sell the property if you provide title covenants in your deed to the new buyer.
The standard Owners policy provides this basic coverage for a homeowner:
- It insures that you are the owner of the property
- It insures against losses from any liens or encumbrances on the property except those listed in the policy
- It insures you have a legal right of access to the property
- It insures against your title being rejected by a subsequent buyer because it is unmarketable due to a title defect or lien
These are just some of the hidden title risks that would not be disclosed by even the most meticulous title search, but are covered by an Owner's policy of title insurance:
- Forgery
- Fraud in the execution of documents
- Undue influence on a grantor of a deed
- False impersonation by someone purporting to be the owner of the property
- Incorrect representation of marital status
- Undisclosed or missing heirs
- Wills not properly probated
- Misinterpretation of wills and trusts
- Mental incompetence of a grantor in a deed
- Transfer of title by a minor
- Heirs born after the execution of a will
- Incorrect legal descriptions
- Non‑delivery of deeds
- Unsatisfied claims not shown in the public records
- Deeds executed under expired or false power of attorney
- Confusion due to similar or identical names
- Erroneous reports furnished by tax officials
- Incorrect indexing of the land records
- Clerical errors in recording legal documents
- Delivery of deeds after the death of the grantor
- Back to Top Why do I need a new Title Insurance policy when I refinance my mortgage?
The title insurance is issued to protect a lender's investment. When the lender changes, the new title insurance covers the mortgage balance for the new lender.
- Back to Top How can Real Estate be titled in Virginia?
Owning real estate is one thing. How it is titled is another. There are many ways that real estate can be titled in Virginia and the vehicle used may have significant tax, estate, creditor's rights, or other implications. Because of the many and significant implications of how real estate is titled, it is recommended that those with questions as to which is the best way for them to hold title obtain competent legal counsel. In virginia, these are the most common vehicles for holding title to real estate:
- Corporations
- Limited Liability Companies
- Partnerships: both General Partners and Limited Partners
- Real Estate Investment Trusts ("REITS")
- Trustees on behalf of various types of trusts, including land trusts
- Trustees on behalf of Churches
- Unincorporated Associations if authorized by statute to hold title
- Custodians on behalf of minors
- Individuals
- Two or more individuals:
- Tenants in Common—This occurs when two or more individuals own real estate. Each tenant can mortgage or sell his or her respective interest in the property, and each interest can be subject to the claims of creditors. Upon death, the interest passes either by will or by the statutes governing intestate succession if there is no will.
- Joint Tenants with the right of survivorship—This occurs when two or more individuals own real estate under certain circumstances. A joint tenancy can only be created by the use of certain language in the deed or other instrument. Joint tenancy has the same characteristics as tenants in common with the distinguishing feature that upon the death of one of the joint tenants, his or her interest passes by operation of law to the surviving joint tenant(s), and passes outside of any will.
- Tenants by the entirety with the right of survivorship—This type of ownership can only exist between husband and wife, and neither spouse can sell or mortgage his/her interest independently of the other spouse. As with joint tenants with the right of survivorship, upon the death of one spouse his/her interest passes to the surviving spouse, and the creation of this tenancy can also only be created by the use of certain language in the deed or other. Back to Top
