Buying or selling a home is both exciting and stressful. Buyers, in particular, have a lot of hoops to jump through to get approved for a mortgage loan.

But another stressor is finding title issues that delay the closing of a property. This is a headache for the buyer because you’re ready to close, but it’s also a headache for the seller who’s also ready to close.
 
So, what common title issues cause these hang ups? Here are four.

Real estate properties have a detailed record of all transactions and ownership changes related to the property. These records are subject to human error. Filing errors or mistakes can accidentally be entered into public record which can lead inaccuracies in the chain of title.
 
Errors can be something as minor as a typo or as significant as an error that impacts the validity of the title. What’s more, these mistakes can carry over from one sale to another before it’s caught. That’s why a thorough title search by a reputable title company is important.
 
Here at Lilly Title & Settlement, we identify and correct recorded such errors before closing so they don’t continue to be a problem.

When previous owners of a property fail to disclose or resolve liens, judgments, or any other claim against the property, the property cannot be conveyed to the new owner. That’s why homeowner’s title insurance can protect you from costly legal action as well as any financial losses that could results from these issues.

At Lilly Title & Settlement, we perform thorough title searches (we’re obsessed with legal details!) on behalf of our clients. This search identifies any missing documents or gaps in the chain of title.
 
Once they are found, we work diligently to get them resolved before closing. This ensures your chain of title is clear.

The owner may have failed to pay property taxes or skipped paying their homeowner’s association fees. This can result in claims or liens against the property, all of which must be resolved by the owner before closing.
 
With a highly respected title company like Lilly Title & Settlement, we can identify any issues and rectify them before your closing date. What’s more, we offer homeowner’s title insurance to protect you from any potential financial losses from title defects or other unforeseen legal issues.

• Unresolved title issues
• Financing changes
• Missing documents
• Appraisal problems
• Last minute repairs

With a thorough title search and early coordination with all parties involved, this can help to reduce delays.

Absolutely! Unpaid liens, boundary disputes, and errors in public records are just some of the problems that can delay closing. A reputable title company works to resolve these issues to keep the closing date on schedule.

It can typically take anywhere from a few days to a week. It all depends on the property’s history and local records. Older properties or complex owner histories may take longer to ensure accuracy.

If a title issue is found late in the process, Lilly Title & Settlement will work with all parties involved, e.g., sellers, lenders, and attorneys. Sometimes, closing may be delayed until the issue is cleared to protect all parties involved.
 
At Lilly Title & Settlement, we’re obsessed with legal details! Our commitment is to see that the closing benefits all parties with a fair, unbiased process that protects everyone. Learn more about us here.

It’s often confusing deciding who to use in a real estate closing. Do you choose and attorney or do you choose a title and settlement company?

There are no wrong answers here. It all comes down to choice. In Virginia, there’s no requirement to use an attorney. In fact, attorneys use title companies to do the title work for them. Then they head up the closing.

• Provide legal advice, if requested
• Review contracts or other legal documents
• Assist with legal disputes or complex situations
• Represent your interests directly if there is a conflict

 
For example, you might choose an attorney for more complex transactions like commercial properties, For Sale By Owner (FSBO), or unique transactions that require an attorney’s deep legal knowledge.
 
Typically, real estate attorneys are not required for standard Virginia closings.

 

• Act as a neutral third party
• Research property records to find any “clouds” on the title such as unpaid mortgages, liens, errors in the public record
• Offer title insurance to protect you from future financial loss due to unforeseen circumstances such as missing heirs, fraud, forgeries
• Protect you from unpaid liens for contractor bills, legal judgments, or taxes you find after the closing
• Holds escrow funds and documents securely until all conditions of the sale are met
• Prepare and record final legal documents for a smooth transfer of ownership
• Provides settlement closing services
  

Real estate agents do not perform title or settlement searches. Instead, their job is to market properties and/or to find buyers. They negotiate the price and the contract terms between buyer and seller.
 
Realtors also guide clients through the transaction timeline, keeping their clients informed. Your realtor, your friends, even your lender, can give you their recommendations for title and settlement companies.

However, the decision is ultimately up to you. Choose wisely by doing your research, no matter what path you take.

Most residential real estate transactions in Virginia rely on a licensed title and settlement company to handle the closing process. Title companies are uniquely positioned to combine risk assessment, insurance protection, and fund management into a single streamlined process. This helps ensure a smooth and secure closing for all parties.

Lenders in Virginia require a title company to verify ownership, confirm lien priority, and issue lender’s title insurance. This protects the lender from undiscovered title defects that could affect their security interest in the property. Lenders require the buyer to buy lender title insurance to protect their investment. It’s optional for buyers to make a one-time purchase of homeowner’s title insurance but we strongly recommend it.

 In Virginia, title companies play a central role in real estate closings by conducting the title search, issuing title insurance, coordinating settlement, and securely handling funds. On the other hand, attorneys and real estate agents provide important services, but they do not typically perform the full title and settlement process required by lenders and buyers.

The short answer to what does a title company actually do is this: We ensure a smooth and legal transfer of property ownership to the buyer from the seller. But how we get there is more complex.

At Lilly Title & Settlement, we do title searches, researching public records to find the property’s ownership history.

Why is that important? Because to transfer title from the buyer to the seller, it must be clean and marketable.

That’s why we search for:

• Court judgments against the property

• Unpaid property taxes

• Outstanding mortgages or liens

• Any disputes over ownership or easements

If we find any encumbrances on the title, we work with the seller to get them removed so the sale can go through.

Lenders require buyers to purchase lenders title insurance on their behalf. But what most buyers don’t understand is that the insurance only covers the lender should a legal property dispute arise. It does not cover the buyer.

If lenders think it’s important enough to cover the property, we hope it would also be important to the buyer. However, in Virginia, homeowner’s title insurance is optional.

We encourage every new homeowner to make the one-time purchase that protects you for as long as you own your home.

As part of closing on your new home, we do more than just research the title of the home you’re buying.

It’s our responsibility to:

• Hold funds in an escrow account

• Prepare and file all required documents for your city or county

• File legal documents including the deed and settlement statements

• Make sure all documents are properly notarized and signed

• Schedule and conduct the closing.

• Disburse funds to the appropriate parties upon successful completion of the closing

In addition, in Virginia, it’s required to get a property survey. This verifies property lines, and any structures on the property. We make sure we have the survey before closing.

It’s also our job to keep you informed every step of the way. To answer any questions, you have so that your closing is on time and handled smoothly.

When you’re ready to close on your new home, turn to the trusted experts at Lilly Title & Settlement for a smooth and timely closing.

The short answer is yes, you can sell your property without a title company. The bigger question is, why would you risk it?

Because of the considerable dangers such as potential hidden liens, title defects, and other legal complications, hiring a title company only makes sense to protect the biggest asset of your life.

At Lilly Title & Settlement, we provide essential services like title searches and title insurance for both buyers and lenders.

Here’s why you want a title company working for you.

Hidden liens and other claims
Buying a home without doing a title search is not advisable. There could be unpaid taxes, mechanic’s liens, previous disputes over the property that could surface after the sale, risking buyer ownership.

Title Defects
Common issues are boundary disputes, issues with the title, and incorrectly recorded information, all of which can invalidate the sale of the property. Read our post of “7 Common Title Defects and How Title Insurance Can Help.”

Complex Legal Documentation
The business of real estate transactions is highly complex. Without a title company to review intricate legal documents and errors in paperwork can lead to complications that can mean financial loss for both the buyer and the seller.

No Protection
Without title insurance for the buyer, you’re opening yourself up to the possibility of future claims that challenge your ownership of the property you purchased.

No Clear Title
Without a title search, the buyer is risking not receiving a clear and marketable title. In short, that means the buyer cannot legally prove ownership much less sell the property at a future date.

While it may seem cheaper to forego hiring a highly respected title and settlement company like Lilly Title & Settlement, it’s also a tremendous gamble.

Our job is to protect you from possible future legal harm. We do that with a title search. We research public records to uncover any existing liens, claims on the title, or encumbrances on the title that will not allow it to be transferred to the new owners.

While we cannot remove existing liens, we can help the seller negotiate and settle with any lien holder discovered during the title search process.

We provide escrow services, holding documents and funds until all conditions are met and the sale can proceed with a smooth transfer of ownership.

Lilly Title & Settlement also offers title insurance for home buyers. This is an optional purchase but one that we highly recommend.

It makes no sense to invest in a home without it. Lenders require that the buyer purchase title insurance for them. They want to protect their asset! So why shouldn’t you?

Title insurance protects you from what is not legally recorded such as fraudulent claims, forgeries, lines of credit that are not closed but used, leaving you on the hook for thousands of dollars, and more.

Play it safe and make the one-time purchase and protect yourself for as long as you own the home.

And lastly, we manage the closing of your new home. It’s a big job but we love it!

When you’re ready to close on your new home, call us or stop in. We’ll handle your closing with ease so you can get into your new home quickly!