Title insurance is a type of insurance that protects property buyers and lenders from financial loss due to issues with the property’s title. The title is the legal ownership of the property, and it must be clear of problems before you can legally own or sell it.
What Does Title Insurance Do?
- Covers Ownership Issues: Ensures there are no hidden problems with the ownership of the property, like:
- Unpaid taxes or liens (debts tied to the property).
- Errors in public records.
- Fraud or forgery related to past ownership.
- Protects Your Ownership: If someone challenges your ownership, title insurance covers legal fees and losses.
Types of Title Insurance
- Owner’s Title Insurance: Protects the buyer for as long as they own the property.
- Lender’s Title Insurance: Protects the mortgage lender and is usually required if you take out a loan.
How It Works
- Before you close on a property, a title company does a title search to check for problems.
- If the title is clear, you can buy the insurance.
- If issues are discovered later (like a forgotten lien or a missing heir claiming ownership), the insurance covers the costs.
Why It’s Important
Without title insurance, you could lose your property or face expensive legal battles if an issue arises after the purchase. It’s a one-time cost that offers peace of mind.
To learn more or refer your next closing in Virginia, simply list “Strong Title, LLC” and email to hvansmith@strongtitlecompany.com