Who Pays For Title Insurance?

The fundamental choice provided by all title insurance companies is the standard title insurance policy. This type of insurance is typically obtained before the finalization of a home purchase and serves to shield the buyer from specific incidents that could affect the property's ownership rights. For example, if discrepancies in publicly available records could risk your lawful property ownership, title insurance would provide a safety net against such potential hazards. However, it's essential to recognize that various errors and unforeseen situations might still pose threats to your property rights, even after the completion of the purchase or the acquisition of a mortgage. Notably, the primary title insurance policy needs to address these risks. As a result, some home buyers choose to upgrade to enhanced title insurance, which extends additional protection to cover a more comprehensive array of possible issues.

…Enhanced Title Insurance?

As its name suggests, enhanced title insurance provides a more extensive and robust level of protection than a standard title insurance policy. While the basic title insurance policy shields you from general concerns like errors in public records, document recording defects, fraud, forgery, and claims by previously unknown heirs attempting to assert ownership of the property, there are still additional potential risks associated with your property title.

Enhanced title insurance encompasses all the elements of the standard policy and goes beyond offering supplementary safeguards. For example, if undisclosed liens emerge after your property purchase, you won't be held responsible for resolving them. Additionally, it covers situations involving restricted access to the property and zoning complications related to your residence. A significant advantage is a defense against structures encroaching onto your property, a more common issue than expected.

Who Exactly Pays for This?

In Virginia, it is customary for the purchaser to cover the expenses associated with title insurance. The price of title insurance corresponds to the property's valuation. Typically, one can anticipate the payment of an owner's policy to amount to a few hundred dollars. The lender's policy cost is an additional charge. In Virginia, it is the established norm for the property buyer to bear the cost of the lender's title insurance policy. Opting to acquire both an owner's and lender's policies concurrently during the property's settlement often results in a more cost-effective approach.

The price of an owner's policy gets influenced by the buyer's choice between a "standard" owner's policy and an "enhanced" policy. The standard policy addresses risks before the property's purchase, while the enhanced policy extends coverage to risks that emerge post-settlement. An improved policy typically entails an added cost of approximately 20 percent compared to a standard policy.

The Closers

Located in the Hampton Roads area of Virginia, The Closers of Virginia, LLC has been delivering title insurance solutions, resources for For Sale By Owner transactions, and associated services within the state of Virginia for an extended duration. The underwriting for The Closers of Virginia is carried out in collaboration with Stewart Title Insurance, headquartered in Newport News, Virginia. Stewart Title Insurance has achieved national recognition for its inventive offerings, adaptable underwriting practices, competitive cost structures, and unwavering commitment to ethical practices. In short, you'll trust the best in the business for a Virginia-based real estate transaction!