Velocity Title Solutions

FAQ

Velocity Title Solutions

Frequently Asked Questions

Do I need title insurance

It is almost always required by your lender when you purchase a house. Furthermore, title insurance is a way to protect what is likely your largest investment —your home.

What does title insurance cover?

Any number of title issues may arise, even after the most meticulous search of public records. These hidden defects are dangerous because you might not learn about them for months, or even years, after purchase. Some common examples of risks covered by your Owner’s Policy include defects in title caused by:

  • Improperly executed documents
  • Mistakes in recording or indexing legal documents
  • Fraud & Forgeries  
  • Undisclosed or missing heirs
  • Unpaid judgments, taxes, liens and assessments
  • Unreleased mortgages
  • Impersonation of the true owners of the property
  • Mental incompetence of grantors on the deed
  • Refusal of a potential purchaser to accept title based on the condition of the title

How much does title insurance cost?

The one-time premium that you’ll pay for a title insurance policy varies by state, and is generally related to the property value. You can use our Virginia Rate Calculator to estimate how much your title insurance policy may cost. 

What is owner's title insurance?

An Owner’s Title Policy is designed to protect you from covered title defects that existed prior to the issue date of your policy. If a valid claim is filed, your Owner’s Policy, subject to its terms and conditions, will cover financial loss up to the face amount of your policy.

What is lender's title insurance?

A Lender’s Policy provides coverage to the lender, not the homeowner. A Lender’s Policy insures that your lender has a valid, enforceable lien on your property. Almost all lenders require borrowers to purchase title insurance to protect their investment.

What to Bring to Closing

Bring government issued identification card like a driver’s license or passport. Identification, must include a picture and signature for notary purposes. In the event that you are a borrower some lenders require two forms of identification so it is always best to have two forms of identification with you.

What is Escrow?

An escrow is an arrangement in which a neutral third party (the escrow agent) assembles and processes many of the components of a real estate transaction, records the transaction, and ultimately, disburses and distributes funds according to the buyers’, sellers’ and lenders’ instructions. Your transaction is typically closed by an Escrow Officer. People buying and selling real estate usually open an escrow for their protection and convenience. Both the buyer and seller rely on the escrow agent to carry out their written instructions relating to the transaction and to advise them if any of their instructions are not mutually consistent or cannot be carried out. If the instructions from all parties to an escrow party are clearly drafted, the escrow officer can proceed on behalf of the buyer and seller without further consultation. This saves much time and facilitates the closing of the transaction.

Are Title Insurance Premiums Deductible?

Unfortunately not under existing rules. However, if the tax code was logically consistent, premiums paid by borrowers on lender policies - those that protect only the lender - would be deductible. Similarly, mortgage insurance deduction would be carried out the same way.

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