Buyers
Title Insurance for Loudoun County Real Estate
TITLE INSURANCE
As a Virginia townhome buyer, before you may close your Virginia real estate transaction, lenders will require a title search to determine if the property is free and clear of any liens or encumbrances on the property. Without a clear title, lenders will not offer you any financing nor is it recommended you accept the property under these conditions. Typical liens and encumbrances could include past due homeowner dues, uncollected property taxes and builder liens for unpaid services/materials.
Title Companies
A title for each property is filed at the local Loudoun County courthouse and it is a matter of public record. The title search is conducted on behalf of the buyer and the buyer’s lender to insure the title conveys all the rights to the property and that the title is free and clear. The title company conducts title searches in the state of Virginia under the watchful eye of a real estate attorney. Every Virginia real estate transaction requires the purchase of a title insurance policy and is usually paid by the seller. This assures both the buyer and the buyer’s lender that a valid title has been conveyed.
Why Title Insurance?
Once the title search has determined the insurability of the title, the Title Insurance Company will provide the buyer and the lender an insurance policy. In layman terms, this means a Title Company will defend the title against litigation and any adverse claims. If a judgment is rendered against the property owner, the title insurance company will pay for any losses suffered by the buyer as stated by the coverage of the title insurance policy.
Protecting Your Title
Without title insurance, real estate is almost unmarketable. It is in the best interest of both the buyer and the seller that a title insurance policy is purchased. Virginia real estate purchase agreements require the purchase of a title insurance policy. It is up to the seller to provide a guarantee for the buyer that the property to be purchased is “free and clear of encumbrances and liens that might impact the current enjoyment or the future sale of the property”.
What Happens During a Title Search
During the actual title search, the history of ownership of the property will be noted and traced to determine who bought and sold the property up to the present owner. As stated earlier, this public information is kept in the County Clerk's or County Recorder's Office in Loudoun County. This information may also be found in title plants maintained privately by title companies in such forms as tract books, index cards, punch cards, and computer records.
A Secure Commitment
Upon the successful completion of a title search, the title company will issue a letter or statement of commitment of insurability and that the search was satisfactorily completed. It is at this time that the real estate closing may be consummated.