What is title insurance?

Title insurance is a type of insurance purchased by a homebuyer which protects them from financial loss due to a defect in a title to a piece of real estate in Virginia. A title refers to the legal right to the ownership of the property, which is usually recorded in the public records. Title insurance will protect the buyer as well as their lender from any financial losses arising from challenges to their ownership of the property. Title insurance is important for Virginia mortgage law because it protects the buyer from defects in the title or other financial losses. Examples of title defects can include someone else claiming ownership of the property, unrecorded mortgages, old liens, or inaccurate documents filed in the public records. Title insurance can help protect the buyer and the lender from these title defects and any associated financial losses. The cost of title insurance in Virginia will vary depending on the type of property, the amount of coverage, and other factors. It is normally paid by the buyer as part of the closing of the mortgage loan. It is important for mortgage lenders to ensure that their buyers have adequate title insurance coverage in order to protect their interests in the transaction.

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