Legal Question in Real Estate Law in Virginia

Title Insurance

Do as your lender does, not as it (or someill-informed loan officer) says. Lenders' title insurance protects the lender, not you.Further, unless you are buying the Pentagon,an owner's policy won't really cost $1000.Here's why. Say the lender's policy will cost$800 (that's still a pretty big loan). Youhave to pay that. If you have an 80% loan,the owner's policy on the full value of the property will probably cost a little under $1000.00. But with a concurrent issue, the lender's policy is just $50.00. So the extracoverage costs you $250. Further, if you getan owner's policy, you can get the reissue rate (about a 30-40% discount, or $300) when you refi; that will not be available if you have only bought a lender's policy. If yourclosing attorney and title company can't offer you these discounts, shop around for another lawyer and title insurer.

And, by the way, don't even think of using a non-lawyer settlement/title company. Use a lawyer to conduct your closing. The fees areabout the same, but the lawyer is ethicallybound to watch out for your interests.