• Title is the right to, or ownership of, a specific real estate property. Ownership, and all the rights and duties of each individual that holds the title for a property, is recorded in a legal document that is filed with public records. This document is referred to as the deed.

• Before you purchase a property, the title or escrow company does an initial search of its title to determine the history of ownership and ensure it is clear of defects, liens, easements, encroachments, or other restrictions on the property.

JOINT TENANTS

• Holding title as joint tenants is when two or more people have an undivided interest in the whole property. The right of survivorship is created through specific language included in the deed. With the right of survivorship, the surviving joint tenant immediately becomes the owner of the entire property upon the death of the other joint tenant.

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TENANTS BY THE ENTIRETIES

• Tenants by the entireties is a special form of joint tenancy that exists only for married couples. Both owners have an undivided interest in the whole property. The right of survivorship is created through specific language included in the deed. Upon the death of either, the survivor takes sole ownership to the exclusion of the deceased spouse’s heirs.

• If a married couple holds title as tenants by the entirety, lien creditors cannot attach one spouse’s lien or judgment to the property unless the tenancy is severed by either divorce or death. In order for a judgment or lien to attach to the property it must be against both spouses. There are two exceptions to this rule:

1. Any transfer of a property into a tenancy by the entirety made in contemplation of a bankruptcy can be set aside as fraudulent if it is made within one year of the bankruptcy and it was made with the intent to defraud

2. Any federal Internal Revenue Service liens applicable to only one spouse will attach to the property.

• Unlike tenants by the entirety, joint tenancies can be severed. If one joint tenant decides to convey his or her interest in the property, that interest is conveyed and the joint tenancy ends. Tenancy by the entireties is also different from a joint tenancy because, if title is held as tenants by the entirety, one owner cannot unilaterally convey his or her interest in the property and the tenancy cannot be severed except by action of both parties.

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TENANTS IN COMMON

• Tenants in common is the default form of ownership in Virginia when there are multiple owners on title to the property. This is when two or more people own an equal or unequal undivided share in a property if stated in the deed and each has an equal right to possess the entire property. However, tenants in common do NOT have the rights of survivorship that exists in a joint tenancy. When an owner dies, his or her interest will not pass to the surviving owner or owners but will pass according to the deceased owner’s will or to the deceased owner’s statutorily determined heirs. There is no creditor or judgment protection for tenants in common. Liens and judgments against only one of the owners can attach to that owner’s portion of the property.

• Buying a home is one of the biggest decisions and financial investments you’ll ever make. To the extent of the matters set forth in the policy, an owner’s title insurance policy provides certain protections in connection with title mistakes and irregularities that occurred prior to the issuance of the policy. Dollar for dollar, it’s one of the most cost-efficient forms of insurance for homeowners. The relatively low, one-time title insurance premium covers you against pre-policy title defects that could otherwise cost tens of thousands of dollars and even the loss of your home, for as long as you own your home.

Title insurance protects you against challenges to rightful ownership of real property - challenges that can arise from circumstances of past ownerships. Each successive owner brings the possibility of title challenges to the property.

• A fire could destroy a house and any improvements. The ground could be left. A defective title may take away not the only the house but also the land on which it stands. Title insurance protects you (as specified in the policy) against such loss.

• A deed or mortgage in the chain of title may be a fraudulent.

• A deed or a mortgage may have been made by an person otherwise incompetent.

• A deed or a mortgage may have been made or executed under a power of attorney after its termination or revocation and would, therefore, be invalid.

• The testator of a will might have had a child born after the execution of the will, a fact that could allow the child to claim his or her share of the property.

• A deed or mortgage could have been procured by fraud or duress.

• Title insurance covers your attorney fees and court costs.

• By insuring the title, you could eliminate delays and technicalities when passing your title on to someone else.

• Title insurance can reimburses you for the amount of your covered losses.

• A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy.

• Each insurance policy we produce is paid up, in full, by the first premium for as long as you or your heirs own the property.

• There may be a defect in the recording of documents necessary for your title.

• Claims constantly arise due to marital status and validity of divorces. Title insurance can protect against these.

• You have the option to choose standard or enhanced title insurance. Simply put, enhanced title insurance, which is a more advanced version of standard title insurance, offers more protection against a wider range of issues.

For a comprehensive comparison, check out our resource HERE.

• In the event of a covered matter affecting your title, your insurance policy may protect you in various ways including: (1) Defending your title, (2) Bearing the cost of settling the covered matter, or (3) Paying you for the loss due to the covered matter.

• At settlement with Bridge Title, buyers and sellers can expect a seamless and efficient process. Our team ensures all necessary documentation is in order for a smooth closing experience. Buyers can confidently take ownership knowing their title is clear and protected by our comprehensive title insurance. Sellers can proceed with the sale knowing all legalities are addressed professionally.

Have more questions about settlement? Click HERE for our comprehensive settlement resource.