by Daniel Yoon | eXp Realty | Richmond, Virginia
Title insurance in Virginia is a one-time fee paid at closing that protects you against ownership disputes, liens, and legal claims on your property. It costs $800 to $2,000 depending on the purchase price. You pay once and you are covered for as long as you own the home. Here is what it actually protects you from.
What Title Insurance Covers
- Unknown liens: A previous owner’s unpaid taxes, contractor bills, or judgments that were not discovered during the title search
- Forged documents: Someone forged a deed or release in the property’s chain of title
- Boundary disputes: A neighbor claims part of your property belongs to them
- Undisclosed heirs: A previous owner died and an unknown heir claims ownership
- Errors in public records: Mistakes in county recording that affect your ownership
Two Types of Title Insurance
Lender’s policy (required): Protects the mortgage lender. You pay for this but it does not protect you. Cost: included in closing costs.
Owner’s policy (optional but recommended): Protects your ownership rights. This is the one that protects YOU. Cost: $800 to $2,000 one-time. I strongly recommend it for every purchase.
How the Title Search Works
Before closing, a title company searches public records going back decades to verify the seller has clear ownership. They look for liens, easements, judgments, and any cloud on the title. Title insurance covers anything the search misses.
FAQs
How much does title insurance cost in Virginia?
$800 to $2,000 for an owner’s policy, paid once at closing. The exact cost depends on the purchase price. The lender’s policy is a separate fee included in your closing costs.
Is title insurance required in Virginia?
Lender’s title insurance is required by your mortgage company. Owner’s title insurance is technically optional but strongly recommended. Without it, you have no protection against title defects.
Who pays for title insurance in Virginia?
Negotiable. In the Richmond market, the buyer typically pays for both policies. However, this can be negotiated as part of the purchase agreement.
Have questions about closing? Call Daniel Yoon at (804) 896-2694. I walk every client through the closing process and make sure you understand every dollar you are paying.