Fairfax Title Company Blog

Home title fraud can affect anyone who has purchased a home. Understanding risks of title fraud and what can be done to prevent it from occurring can help homeowners protect their investment. This review discusses what constitutes home title fraud, what risks title fraud presents for home buyers, and most importantly, how homeowners can protect themselves from title fraud.

What Is Home Title Fraud?

A home title denotes who has legal ownership of a particular property and is usually in the form of a deed. Home title fraud, also called deed fraud, occurs when the title to your home is stolen and is a form of identity theft.

A criminal may commit home title fraud by forging the deed and submitting it to allow for the illegal transfer of ownership. From this point, the fraudster may sell the home’s title and subsequently the property itself. Fraud can also be perpetuated by refinancing the loan, taking the proceeds and allowing the loan to expire, which causes the home to fall into foreclosure.

What Happens When Home Title Fraud Occurs?

The most obvious risk of home title fraud is the potential loss of your property. However, there are other complications title fraud and theft may cause, such as the incurred legal battles, litigation, financial loss, delayed closing times and emotional stress placed upon the title owner and their family.

Loss Of Property

Title fraud can lead to the loss of your property. Many victims of title fraud are unaware their title has been stolen; in the meantime, the thief may sell the title, refinance or allow your home to enter foreclosure. In the worst-case scenario, you could find yourself temporarily or permanently no longer in possession of your home.

Legal Battles and Litigation

Of course, you have the option to fight the theft and regain ownership of your property. However, this will likely involve a lengthy and costly legal battle. Any matter being resolved in the court system may also require multiple court appearances.

Financial Loss

The loss of your home’s title due to fraud could certainly create a negative financial impact. This may include costs associated with hiring an attorney, costs for filing motions with the courts and possibly displacement costs for temporary housing. There may be costs associated with repairing any damages that occur to your home as a result of the fraud.

Delayed Closing

Issues with your home title could lead to major delays when you attempt to close the sale of your home. This can lead to major frustration for yourself, the buyer, the title company, and everyone else involved in the sale process.

Emotional Distress

One of the most unfortunate risks of title fraud is the amount of stress it can place upon homeowners and their families. The financial and legal strain it causes leads far too many to feel overwhelmed. The process can also take time to resolve, which leads to a fair amount of stress over a long period of time.

How Title Services Helps Protect Against Home Title Fraud

Of course, the best method is to prevent fraud from happening in the first place. The good news is that you can also protect yourself by taking certain precautionary steps. Most notably, you can help prevent title fraud from occurring (or causing complications) by working with a title company that monitors your title and promptly notifies you of any suspicious activity and also takes action if there are any instances of potential fraud or theft.

Additionally, title insurance helps protect you from financial loss in the event title fraud does occur. For example, title insurance may cover legal costs associated with challenging the possession of your title in court.

The Different Types Of Title Services To Protect Against Title Concerns

Title insurance is a great way to protect yourself from financial responsibility related to title fraud against you and reduce your overall risk. Notably, title insurance is recommended for title owners who are at a higher risk of fraud (i.e. individuals who own multiple titles) and those who are going through a real estate transaction. Title services are recommended for buyers, sellers, lenders and real estate agents who need to reduce their overall risk.

There are additional services to consider for further protection from title fraud and other title-related concerns. The services you need depend on your situation. For example, you may need legal title services if you are dealing with mechanics liens related to an unpaid contractor who performed remodeling work on your home. You may also need title services if you are refinancing or have property that is vacant for periods at a time.

Mathis Title Company Provides Reliable Home Title Services

Mathis Title Company offers title company services and legal services for buyers, sellers, lenders and real estate agents. We also provide consultancy and advisory services. If you have questions, concerns, want to learn more or get started, contact us today by phone at 703-214-4020 or schedule an appointment online.

If you are purchasing a condominium, you may have heard the term “title insurance” in conversation with a real estate agent. Title insurance provides protection should any issues with the title arise. Although a title search will be done prior to closing, problems can be uncovered later, heirs to previous owners may come forward, disputes over ownership may arise or title fraud may occur. But how does title insurance work and why is the investment worth considering?

Here is a look at title insurance benefits and what you can expect to pay.

Why You Should Consider Title Insurance

Buying a condo is a big investment—not just in the property itself, but also in terms of your time and energy. Whether this is going to be your home, a vacation spot or a rental, your investment in the condo must be safe and secure.

Title insurance provides protection against problems with your title which is the legal document that identifies what constitutes the actual property and ownership of the property. Any disputes over ownership of the property can create problems for you when it comes time to sell or refinance your condo.

Most insurance policies are paid for on a monthly or annual basis and have to be renewed each term. Title insurance for a condo is a one time payment. Once you purchase your policy, you are protected for as long as you own the property. If at any time you own the condo, a problem arises, you are protected.

How Title Insurance Can Help You When Purchasing A Condo

If there have been any issues with the way the title of the condo has been transferred, or if there is any question about who owns any portion of the property, it may be difficult to close on your purchase.

For example, if another person claims any portion of ownership of your condo, they could claim that they are entitled to more than their share of the proceeds from the sale. This could lead to lawsuits and other legal challenges that would make it difficult or impossible for you to sell or refinance the property.

The Types of Title Insurance For A Condo

There are two types of title insurance: one that protects the mortgage lender and another that protects the homeowner. You will likely be required by your lender to purchase a title policy for them and although you pay for this policy, it provides no protection for you. This policy protects the financial interest of the lender only. You will need to purchase a separate policy for your protection.

Title insurance provides protection against disputes regarding property titles. These potential problems may include:

• Title fraud
• Disputes over previous iterations of the deed or title
• Liens for unsettled payments or taxes
• Undisclosed heirs

Mortgage Lender’s Title Insurance

Mortgage lender’s title insurance protects lenders against losses resulting from the possibility that the borrower will not be able to clear the title from disputes on their new property. If you are financing all or part of your purchase, a lender will require this type of insurance as a condition of the loan. This will be paid for by the purchaser, for the lender, at or before closing on your purchase.

Homeowner’s Title Insurance

A homeowner’s title insurance policy insures the owner against defects in the title that were not found during a title search. The policy is paid by the purchaser and covers either the purchaser or his heirs as long as they have an interest in the property. This policy may be purchased at the time of purchasing the lender’s policy or at any time after closing.

How Much Does A Title Insurance Cost

Title insurance cost is certainly a factor when shopping for a policy. It is a relatively easy calculation to make, as you can expect to pay .5% to 1% of the sales price of the property. This may fluctuate some depending on any extra provisions you may add or that a company may upcharge. It is important to fully understand what is and is not covered with the policy you choose. It is important to note that a more expensive policy does not necessarily lead to better coverage.

Other important factors to consider when reviewing title insurance cost is the quality of service and how quickly claims are being processed. Investing in a title insurance agency that lacks in both respects may cost you far more in the event of having to defend your ownership of the property. Using a well established and local title insurance company can help ensure that the company is familiar with the potential problems that are specific to the area.

Ask The Title Insurance Experts To Help Secure Your Condo Investment

If a lender considers title insurance important for protecting their investment, the property owner should cover their interests as well.

The title insurance experts at Mathis Title Company have decades of combined experience in covering condo purchases in Virginia and would be happy to address any questions you may have. From title searches to title insurance policies, Mathis Title Company has you covered. Contact Mathis Title Company to learn more about our services at 703-214-4020 or schedule an appointment with an agent to insure the title to your condo today.

When purchasing a piece of land, you are also purchasing the legal rights to that land. Without a home and occupants, a land purchase may seem straightforward; however, land sales are quite often complicated by lien issues, recording errors, boundary issues and disputes, illegal deeds and other deed issues.

Title insurance protects your ownership rights to the property and ensures that no one else has any claim to those rights. It is recommended, and in some cases required, to have the insurance before a sale can be completed. Who is responsible for purchasing title insurance?

What Is The Cost Of Title Insurance For Land Property?

In the state of Virginia, it is standard practice for the purchaser to pay for title insurance but there may be room for negotiation. In some cases, a skilled real estate agent may find leverage to push the responsibility of purchasing title insurance onto the seller.

The cost of title insurance usually averages around .50 – 1% of the purchase price but may see a higher or lower rate based on the price bracket of the final sales price with higher sales prices seeing a lower rate per thousand. The fees can also fluctuate based on the findings of the title search and other factors.

Why Title Insurance For Land Property Is Worth The Investment

For the purchaser, the benefits of investing in title insurance when buying land property are immense. In order to understand the cost of title insurance, it is important to understand what title insurance is and the circumstances in which it can secure your land property purchase.

Title insurance protects the property owner against any title defects that may exist in the property. This can include defects such as unpaid taxes, liens on the property or even encroachments by other parties that have not been resolved. If your title search reveals any issues with your title, the title insurance company will help resolve those issues.

If, after settlement, a title problem or dispute arises, your title insurance provider will step in to help mitigate the damage and help defend your rights to the property. This can include instances of title fraud or attempts, the emergence of long lost heirs to the property or boundary disputes.

Who Needs Title Insurance For Land Property?

An owner’s title insurance policy protects the landowner from financial loss due to an error or defect in the title. With a title, the landowner is stating their claim over the property giving them the right to transfer ownership of it. Title insurance ensures that if there is any question about who owns a piece of property, or if there are any liens or other issues with the title, then you will be able to recover your losses during litigation.

A lender’s title insurance policy provides protection for their investment in your property; they are lending the money against the value of the land. Should anything interfere with your rights to the land, their stake is affected as well. Although lending for undeveloped land is not as common as lending for home purchases, it may still be applicable.

How Do Mistakes In Titles For Land Property Happen?

Purchasing real rates is an exciting experience, but it can also be a complicated one. Title defects are one of the most common obstacles to smooth, problem-free real estate transactions.

Here are some of the most common causes of title defects:

• A lien is a relatively common hindrance to a smooth title transfer. This can occur if a property owner owed money and did not pay it back. The person expecting the money to be paid can file a lien with the clerk’s office to collect the money. All liens against the property must be paid in full prior to the purchase, as lenders won’t approve a mortgage until the debt is paid off. Even without a lender, you will still assume the responsibility of the debt.
• If the land was ever part of a willed estate, there could be an unknown unresolved probate issue. Death certificates may be misplaced over time and property ownership can become unclear if there are undefined or competing heirs.
• Other issues such as forgery and fraud, contested divorces, or mental incompetence can all contribute to a defective title and significantly impact your property purchase.

Protect Your Land Property Purchase With Help From A Reputable Title Insurance Agency

If you are interested in learning about title insurance or what title insurance costs, contact the experts at Mathis Title Company, they will gladly answer your questions about title insurance. Mathis Title Insurance also provides numerous settlement services for land property owners in Virginia with excellent service and processing time. Call 703-214-4020 or go online today to schedule an appointment.