Understanding the Value of Title Insurance

A few years ago a new landowner in the Shenandoah Valley approached my neighbor and I to suggest that the property where our houses were located was actually part of his land and he intended to "take back" the property.  My neighbor who had owned his house since the original land had been subdivided knew that neither of our homes or land were on any part of the new landowner's property.  The new landowner was insistent and let us know his plans to run a road right through our property.

If the thought of this happening to you sends chills up your spine then you have just learned the value of buying title insurance.  Without it this scenario could end up costing you thousands of dollars and countless hours to sort out.  Instead with a quick phone call to our title insurance carrier the issue was resolved.  All of the land transfer records were checked, all the signatures confirmed and his claim was not valid.  In fact the new landowner had bought his property without a survey and relied on old county records to determine his land boundaries.  He didn't have title insurance and ended up not only with less land than he thought but with a few thousand dollars in legal fees to pay as well.

The cost to us was ZERO!

Fast forward to our current Northern Virginia market and it isn't unusual to discover issues with the titles on foreclosure properties.  Incorrect filings, deeds improperly signed and missing signatures are just a start of the concerns.  Without title insurance the lender who "owns" the property wouldn't be able to pass clear and marketable title to the new buyer which could either delay the closing or derail the transaction all together.

Unlike homeowners insurance that you pay every year for as long as you own your home, title insurance is only paid once and protects you even after you have sold the home.  Your lender will require that you buy title insurance to protect their interest at the same value as the loan you have acquired called a lenders title policy.  You will be offered a owner's title insurance policy as an option.  This is the policy that protects you up to the actually sales price of the home and most enhanced policies, which cost just a few dollars more, offer you protection for the increased future value of your home.

As you look at the total cost of homeownership a title insurance policy is one of the least expensive items you will purchase to protect your investment.  Be sure to ask your agent about how you might be able to save money at settlement on a "re-issue" title insurance policy.  Let's face it every dollar does count when you are buying your new home.

                No Hassle-No Pressure-Just Straight Talk About The Northern Virginia Real Estate Market

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and CJ Realty Group, Inc a call at 703-346-2213. 

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Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.  

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