About The Real Estate Group

The Real Estate Group (TREG) "Partners in Excellence"

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.

Wait… Tell me again why I need two different kinds of Title Insurance?

There are two basic types of title insurance that are typically obtained during a real estate transaction:  Owner’s Title Insurance and Lender’s Title Insurance.

First, let’s take a brief look at what title insurance is and why it is a part of your transaction.  The short answer: Title Insurance protects real estate buyers  and/or lenders against any property loss or damage they might experience due to undiscovered liens, encumbrances (mortgages, etc.), or defects in the title to the property.  Defects are things such as another person claiming an ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items that are specified in the insurance policy.  If I’ve been asked once, I’ve been asked a thousand times WHY on earth someone needs two title insurance policies when they purchase their home.  An owner’s title policy and lenders title policy are essentially covering the same thing, but the difference lies in who is benefiting from the coverage.

 

The Lenders Policy: When you obtain a loan on a property, your mortgage lender will require a Lenders Policy for the transaction.  The lenders policy insures the lender that their mortgage sits in first position on a property and that at the time of closing, all current liens, taxes, judgments, etc. will be paid or removed from the title to the property.  The policy essentially provides protection for the lender in the event a title claim is made against the insured property and protects the lender’s interest and investment in the property.  If a covered claim is made against the property, the lenders title insurance will cover the investment of the lender and NOT the borrower/owner.  Lender’s Title Policies are typically issued based on the original loan amount and only cover the original lender and their successors and/or assigns, but should you refinance your loan, a new lender’s policy would be issued.

 

The Owner’s Policy – The Owners policy basically provides the same coverage as the lender’s policy, but it will instead insure the buyer/owner of clear title to the property upon purchase.  In the event of an insured claim, the owner is protected for any covered risk, hence, the risk is transferred to the insurance company for the insured property.  Owner’s Title insurance is technically an optional insurance policy issued to the owner of a property, however, the purpose of the owner’s policy is to protect the owner for any monies at risk so while optional, it is certainly something you should never forego.  Keep in mind that the lender requires title coverage to protect their investment, so it only makes sense that you would want that same protection for yourself as a homeowner.

 

A simultaneous issue discount is applied when owner’s title and lender’s title insurance policies are issued together at closing.  It is recommended that you compare costs, coverage, and policy types before making a decision to buy an Owners title insurance policy in Virginia, as you will have the choice between a Standard Title Policy, or the Enhanced Title Policy, which offers far more of a comprehensive coverage than the standard at a nominal cost.  Often times, owner’s title coverage can be purchased for a small additional premium relative to the entire transaction cost and is a worthwhile purchase for protection in a property you are buying, especially since as a buyer, the seller may have provided a credit for you to use toward your closing costs.  An instant online rate calculator for a Virginia Lender’s and Owners polices can be found on Landmark Title’s website at www.landmarktitleva.com, or you can contact Landmark Title directly at 757-410-8077 x1.  Keep in mind that in the Commonwealth of Virginia, you have the right to choose a title company and we hope you choose Landmark Title for your real estate closing needs.

About The Real Estate Group

The Real Estate Group (TREG) "Partners in Excellence"

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.