What Does a  Title & Settlement Company Do in Virginia?
​A Simple Guide for Buyers & Sellers

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 When you buy or sell a home, one of the most important questions you can ask is: what does a title company actually do?

The short answer is that a title and settlement company ensures the smooth, legal transfer of property ownership from the seller to the buyer. But the work behind that simple promise is far more involved.

 At Lilly Title & Settlement, a woman-owned company serving Virginia buyers and sellers, our job is to handle the complexity of your real estate transaction, so you don’t have to.

We manage the intricate logistics of a closing, protect your interests as a neutral third party, and make sure every legal document complies with Virginia’s specific closing laws under CRESPA, the Consumer Real Estate Settlement Protection Act (formerly known as the Real Estate Settlement Agents Act).

Below, we answer the most common questions buyers and sellers ask about title searches, title insurance, and the closing process in Virginia.​

What Does a  Title Company Do in a Real Estate Transaction?

A title and settlement company does far more than push paperwork. Our core responsibilities fall into three areas:

• We research the property’s ownership history, also called the chain of title, by examining public records.
• We identify any liens or legal issues that would prevent a clear title transfer.
• We manage the entire closing process, from escrow to final disbursement of funds.

This work ensures the buyer receives clear ownership and that all funds and documents are handled securely and accurately. 

What is a Title Search and Why Does   It Matter?

A title search is the process of researching public records to uncover a property’s complete ownership history. It matters because, in order to transfer title from seller to buyer, the title must be clean and marketable.
 
During a title search, we look for:

• Court judgments against the property
• Unpaid property taxes
• Outstanding mortgages or liens
• Disputes over ownership or easements

If we find any encumbrances on the title, we work directly with the seller to get them removed so the sale can proceed without complications.

How Do We Review Your Contract Before Closing?

​Before anything else, we go through your ratified contract line by line to confirm every detail is correct and enforceable. That review covers:

•  The agreed-upon price of the home
• A complete and accurate description of the property
• Whether contract contingencies have been met so the transaction can close
• Which appliances and fixtures are included in the sale
• Confirmation that the deposit is properly held in escrow
• Who's responsible for which closing costs, and that funds are allocated correctly
• The closing date, confirmed with all parties
• Required signatures from each party
• Terms of possession, and whether both parties have met their obligations
• The buyer's mortgage status, from pre-approval through final review

​Catching a problem in the contract before closing is far easier and cheaper than fixing it after.

What is a Clear Title?

A clear title means there are no unresolved recorded liens, ownership disputes, or legal claims against the property.

These issues are all resolved by the title and settlement company before you reach the closing table. Ownership can only transfer once the title has been cleared of all recorded problems or defects. 

What is Title Insurance,  and Do Buyers Need It in Virginia?

​Lenders require buyers to purchase lender’s title insurance on the lender’s behalf. What most buyers don’t realize is that this policy only covers the lender should a legal property dispute arise. It does not protect the buyer.
 
If lenders believe protecting the property is important enough to require coverage, we believe it should be just as important to the buyer. In Virginia, homeowner’s title insurance is optional, but we encourage every new homeowner to make this one-time purchase.
 
A homeowner’s policy protects you for as long as you own your home against future losses from hidden defects such as:

• Forgeries and fraud
• Lost or fraudulent wills
• Clerical and recording errors
• Illegal or undisclosed trusts
• And more

For the biggest investment of your life, this one-time purchase is one of the smartest ways to reduce long-term risk 

Why Do Buyers and Sellers Need a Title and Settlement Company?

​In short: to protect the biggest investment of your life. Working with a title and settlement company reduces risk at every stage of the transaction. We:

• Verify legal ownership of the home to be purchased
• Help resolve title issues before closing
• Ensure the transaction follows Virginia state and local requirements

Without this process, unresolved liens, errors, or hidden title defects could create costly problems after you’ve already closed on your home.

What Closing Services Does a Title Company Provide?

​Closing on a new home involves much more than researching the title. As your settlement agent, it’s our responsibility to:

• Hold funds securely in an escrow account
• Prepare and file all required documents for your city or county
• File legal documents, including the deed and settlement statements
• Ensure 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 Virginia, a property survey is also required. This verifies property lines and any structures on the property, and we make sure the survey is completed before closing.
 
Throughout the process, it’s our job to keep you informed every step of the way and answer any questions you have, so your closing happens on time and goes smoothly. 

What Happens with Property Taxes and HOA Fees at Closing?

As part of closing, we confirm there are no outstanding property taxes owed on the home. If the property is part of a homeowners' association, we also verify that HOA dues are current.
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Any HOA fees are prorated on the settlement statement based on the property's billing cycle and the closing date, so both buyer and seller only pay their fair share for the time they actually own the home.

Do  Buyers Get to Choose Their Title and Settlement Company in Virginia?

​Absolutely. Your realtor or lender may offer a recommendation, but ultimately the choice is yours. You have the right to select a trusted, local title and settlement company that ensures a transparent and smooth closing experience.

Choose Lilly Title & Settlement for Your Virginia Closing

At Lilly Title & Settlement, a woman-owned company, we’re obsessed with the legal details that ensure your property closes properly and in full compliance with Virginia state and local requirements. From the title search to the final disbursement of funds, we make a complex process simple, transparent, and on time.
 
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. 

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