No one wants to answer the door to find a stranger claiming to have a legal right to your home. It’s every homeowner’s worst nightmare!
But the fact is, it does happen because there are nefarious people in the world.
But the fact is, it does happen because there are nefarious people in the world.
The good news is a one-time payment at closing of homeowner’s title insurance can give you peace of mind.
What is Homeowner’s Title Insurance?
There are two kinds of title insurance in Virginia. The first is lender’s title insurance. This is a required purchase by the lender that the buyer must pay at closing.
Lender insurance protects the lender from any possible future alleged title defects and from disputes between the buyer and the seller resulting in financial losses.
Homeowner’s title insurance is an optional one-time purchase made at closing that protects the buyer should a claim arise against the title once ownership changes hands.
This policy remains in effect as long as the buyer owns the home.
Lender insurance protects the lender from any possible future alleged title defects and from disputes between the buyer and the seller resulting in financial losses.
Homeowner’s title insurance is an optional one-time purchase made at closing that protects the buyer should a claim arise against the title once ownership changes hands.
This policy remains in effect as long as the buyer owns the home.
What Kinds of Title Disputes Does the Homeowner’s Policy Cover?
There are many common title disputes that can arise.
These are called hidden defects and would not be found when researching the title because they aren’t there! That’s why homeowner’s title insurance is so important.
- Forgery of a deed
- Unpaid real estate taxes
- Heirs that have been undisclosed or missing
- Heirs born after the execution of a will and later make a claim of ownership
- Trusts or wills that haven’t been probated properly
- Lost wills
- Illegal trusts
- Errors in researching the title and in the recording and filing of the legal documents
- Adverse possession
These are called hidden defects and would not be found when researching the title because they aren’t there! That’s why homeowner’s title insurance is so important.
What Happens If a Dispute Arises?
Should there be a title challenge to your home, your title company will provide legal counsel, paying the legal fees of defending and resolving the dispute up to the extent of the policy you hold.
If the challenger to the claim is determined to be vaild, then your title company will reimburse you for any financial loss up to your policy’s limit.
Learn more about Lilly Title’s homeowner policies here.
If the challenger to the claim is determined to be vaild, then your title company will reimburse you for any financial loss up to your policy’s limit.
Learn more about Lilly Title’s homeowner policies here.
What Isn’t Covered by Homeowner’s Title Insurance?
Generally speaking, it does not cover conditions of the home after the closing date such as mold, structural defects, radon, termites, or an unrecorded underground storage tank.
What is the Investment for a Homeowner’s Title Insurance Policy?
Usually, the investment is a one-time fee paid by the buyer at closing. Typically, it’s between .5%-1% of the purchase price. Rates do vary by state. So, check yours to be sure.
Conclusion
At Lilly Title & Settlement, we want you to feel secure in the ownership of your new home for as long as you own it.
We’ll make sure that you have a clear title at closing. And, we encourage you to future protect your home with homeowner’s title insurance.
A home is the biggest investment in life for most people. Make sure you guard it wisely!
Lilly Title & Settlement is a woman-owned title and settlement company. We’re obsessed with legal details. We’ll make closing as smooth as humanly possible so you can enjoy your new home sooner!
We’ll make sure that you have a clear title at closing. And, we encourage you to future protect your home with homeowner’s title insurance.
A home is the biggest investment in life for most people. Make sure you guard it wisely!
Lilly Title & Settlement is a woman-owned title and settlement company. We’re obsessed with legal details. We’ll make closing as smooth as humanly possible so you can enjoy your new home sooner!
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