Title Insurance: Do you need it?

Whether you are buying in Richmond, Chesterfield, Henrico, or Hanover, certain aspects of the sale will be the same regardless of location.

One of those things happens to be the need for title insurance.

What is title insurance?

This is a type of insurance that protects homeowners and the lender against financial loss in the event that certain problems develop regarding the rights to ownership of property. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim.

While the title of a property is checked prior to a real estate closing, hidden defects can be overlooked. Issues could arise such as

• Sudden appearance of unknown heirs claiming an interest in the property

• Forged deeds or impersonations

• Incorrect legal descriptions

• Improper recording of deeds

There are two types of title insurance, lender’s coverage and owner’s coverage. If there is going to be a mortgage on the property the lender will require a buyer to purchase title insurance. This will protect the mortgage company should an issue arise. For a one time additional cost a buyer can elect to purchase additional coverage to protect them against title defects as well. This is the owner’s title insurance.

For more information about the process to buy Richmond Virginia real estate, contact Linchpin Real Estate Group