Haymarket Realty Group of Northern Virginia

What is title insurance?

Title insurance offers you information on the status of the title to land before you buy - and protection against claims that may affect the title after you buy. Here's how it works: Before your real estate transaction closes, the public records are searched to find all related official documents. These documents are then examined for their effect, and form the basis of the title insurance policy.

The examination reveals the current status of ownership and encumbrances, and it shows the current record owner, based on a careful evaluation of all records. In addition, the record shows the current limitations on that owner's property rights, such as outstanding mortgages and utility easements. A buyer or lender knows that some of these limitations should be removed (by paying off and releasing a prior mortgage, for example), or they will continue to adversely affect the property after the closing.

If the status of title is cleared before you buy, why do you need title insurance? Because even after the most careful research, some title flaws - such as forgery, fraud or confusion due to similar names - may go undetected. These problems may surface at any time in the future.

Protection against future claims is provided by a title insurance policy which is issued after your transaction is complete. Policy terms and conditions determine the extent of coverage provided. This insurance policy insures the condition of title. Separate policies are usually issued to protect the owner's and the lender's interests.

It is in the lenders best interest to protect their investment. A loan policy protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist but not be known at the time of sale.

But this policy only protects the lender's interest. It does not protect you. That's why you need an owner's policy. The owner's policy can be issued at the same time as the loan policy for a nominal one-time fee. By obtaining a separate owner's title insurance policy, protection continues for as long as you or your heirs own the insured property, and without any additional fee.

Real estate investment demands the best possible protection. Remember, you need title insurance just as much as your lender. In the event of a claim against your property, title insurance will protect you against loss resulting from any title risk covered by the policy (up to the policy amount); and costs, attorney's fees and expenses occurred from the loss.

STONEWALL TITLE & ESCROW, INC. has been closing transactions and issuing title insurance policies on Virginia properties since 1989. Whether it is a $20,000,000 shopping center or a $20,000 equity loan, SERVICE OF OUR CUSTOMER is our number one priority. Our offices, staffed with experienced personnel and licensed title insurance agents, services all areas of Northern Virginia. David and Mina Croson, owners of Stonewall Title, seek excellence in all aspects of the company's operations.