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What is title insurance? And do I need it?

Once you understand it, protection is a no-brainer

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A home is the single largest financial investment most people make.

Sherri Anne: Deirdre, as part of my buyer discussions, I walk through the settlement process. What paperwork to expect, including the closing statement and the costs associated with purchasing a home.

But let’s be honest, the excitement and focus is always on finding the perfect home. Details on closing costs and fees are discussed, but not internalized. When the closing document arrives a few days before settlement, most buyers start taking a closer look.

A home is likely the largest purchase most people make in their lifetime so ensuring that they are spending wisely–on every part of the transaction—is top of mind.  When buyers start examining their bottom line, title insurance is something many ask if they can do without.

I’ve heard some horror stories regarding title issues and I know you’ve heard more. So, I thought it might be a great topic for us to discuss.

Deirdre: Of course. It’s important and, you are right, one that usually doesn’t get discussed until I am sitting at the closing.  At that moment, emotions are running high. The buyer is ready to start their new chapter of life in their new home. That moment just isn’t the right time to be deciding if you should or shouldn’t purchase title insurance.  Let’s shed some light on its merits and protection.

Sherri Anne: Great, so let’s start with the basics. What is title insurance?

Deirdre: There are two types: a Lender’s Title Insurance Policy and an Owner’s Title Insurance Policy. The Lender’s policy is required if you are taking out a mortgage loan. The Owner’s policy is optional which is why many ask if they can eliminate it.

In simple terms, title insurance insures against a successful title claim on the property. The Lender’s policy insures the financial investment of the bank or lender as defined by the loan amount and the Owner’s policy insures the buyer—the new owner of the property. The Owner’s policy is paid for with a one-time fee—not an annual payment like home owner’s insurance — and the policy will be in place for as long as the owner owns the property. The Lender’s policy is also a one-time fee, but is re-issued each time the buyer refinances the property.

Sherri Anne: Once I explain that the lender policy is required, their next question is, “If a Lender’s policy is being issued why would a I need an Owner’s Policy?”  Many see that Lender policy and assume it is enough coverage.  Why shouldn’t a buyer “depend” on the Lender’s policy?

Deirdre: The short answer is that the Lender’s policy covers the lender and not the Owner.  The Lender’s interest and the Owner’s interest may not always be the same when an issue comes up. Look at it this way, the Lender’s policy is based on the dollar amount of the loan. It only protects the lender’s interests in the property should a problem with the title arise. Its coverage amount is based on the loan balance on the day of the claim—not the value of the home. This is because the policy amount decreases as you pay down your loan and eventually disappears as the loan is paid off. An Owner’s policy is usually issued in the amount of the real estate purchase, not the loan value. Only an Owner’s policy protects the buyer should a covered title problem arise. Possible hidden title problems can include: errors or omissions in deeds; mistakes in examining records; forgery; undisclosed heirs.

An owner’s policy provides assurance that your title insurance company will stand behind you—monetarily and with legal defense if needed—if a covered title problem arises after you buy your home.

Sherri Anne: All of this sounds great, but sometimes real-world applications help us all understand an issue. Can you share a case where you’ve seen title insurance was needed to correct a problem?

Deirdre: Claims against title happen every day. Even though the title company will conduct a search and resolve any title issues that are seen at the time, problems could arise that threaten the buyer’s ownership rights. For example, forgery. There have been cases where a seller has misrepresented their identity and sold the property only for the real owner to turn up after settlement. The transaction is therefore not valid, because the fake seller had no right to sell.

The most frequent title claims just involve human error. Mis-recorded documents, incorrect legal descriptions, and very old documents that are not available electronically can all lead to title claims in the future.

These things happen enough that your lender wants coverage.  Just like any other insurance product, you may never need it, but you will be really happy that you have it if you ever do.

Sherri Anne: Without title insurance it would be up to the owner to depend on their own defense, correct? And, we both know that could get costly.

Deirdre: Just as you said, a home is the single largest financial investment most people make. We do not think twice about insuring everything else that is valuable.  We get life, car, and personal insurance, and insurance for our health and pets. Wouldn’t a buyer want to insure their largest financial investment as well? For a one-time fee, Owner’s title insurance protects the buyer’s property rights for as long as they own the home.  Once you understand what it is – it really is a no brainer.

 

Sherri Anne Green is an award-winning Realtor with Coldwell Banker Residential Brokerage focused on custom, data-driven marketing and client service. Reach her at 202-798-1288, or [email protected], or on Facebook, or on Instagram. Deirdre P. Brown, J.D.  is a settlement agent with Mid-Atlantic Settlement Services, LLC. Reach her via CloseWithDee.com. 

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Real Estate

Moving presents a chance to ‘clean house’

Leave some of the old you behind

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Moving is a good opportunity to shed the old and make way for the new. (Photo by Basilico Studio Stock/Bigstock)

One of the biggest headaches of the new home process is the actual moving part. By the time someone is buying a home, most people are beyond the “I just need a pickup truck, a pizza and a case of beer for my friends.” 

If that is still someone’s preferred way to move, that’s great. However, many people find they need a much more robust plan. It can also trigger a lot of feelings about items one owns, what to do with them, do they have too much, should I keep this memento that I never use? Etc. 

Moving is a chance for a person to “clean house” literally, figuratively, spiritually and energetically. A person can figure out which items they want to keep, and which need to go. As someone who recently moved across the country, I can speak to this experience. It’s also time for what people call “the fresh start effect.” This phenomenon, according to psychologists, can happen in little moments (like the start of a new work week) and bigger moments (such as moving from one home to the next).  

The fresh start effect offers these benefits often mentioned by psychologists:

  • Mental Accounting: Dates act as chapter breaks, letting you put past failures into a previous period.
  • Psychological Distance: You separate your flawed past self from your aspirational future self (“That was the old me”).
  • Optimism Boost: New beginnings clear mental clutter and increase your sense of agency and control

Does this mean that “the new you” will be the perfect version you envisioned? Probably not. We are humans. But it might mean you get a chance to “leave some of the old you behind” within the walls you used to live in, and now have a chance to have a new layout, a new décor, a new color pattern, new wallpaper, donate old furniture and books or magazines, throw out clothes you no longer use or fit in, and enjoy the opportunity to literally use the, “Does this spark joy?” method that was made so popular by Marie Kondo in her Netflix series.  

So, for all its hassle and headache, moving is a chance to shake off the “old you” and try on the new you, to incorporate the items you would like to keep and use more of, and shed the items, habits, and ways of thinking that you feel no longer serve you. 

I can speak to the experiences that several of my clients had when they moved from a previous residence to a newer one. It usually coincided with a change in relationship status, a change in employment, a change in family size, but sometimes it just seemed to correlate to a new attitude and perspective that the client was really hoping for. 

I have literally had clients come to me after the fact, in tears, that they were so happy they made the decision to move out of a situation that no longer served them, and move into one that felt like a much better fit. 

Change can be annoying and overwhelming at times, but usually most people come out the other side, not wanting to return to the way they were before. 


Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].

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Real Estate

With gas prices soaring again, a staycation is a good plan

Home can be your personal retreat and your own private resort

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Retreat to your own deck or backyard for an affordable, stress-free staycation. (Photo by Artazum LLC/Bigstock)

When airfare costs more than your monthly utility bill and a weekend road trip requires a second mortgage just to fill the gas tank, many homeowners are discovering an unexpected luxury: the staycation.

A staycation isn’t settling for less—it’s reaping the benefits of one of the biggest investments you can make: your home. Much more than a place to sleep, it’s your personal retreat, your gathering place and, with a little preparation, your very own private resort.

Whether you own a single-family home, a townhouse, or a condo, creating a memorable staycation starts with appreciating what made you fall in love with your property in the first place.

Start with a home refresh. Think about checking into a beautiful vacation rental. It’s spotless, organized, and inviting. You can recreate that same feeling by spending a day preparing your home before your staycation officially begins.

Clear away clutter, deep clean the bathrooms and kitchen, wash the windows, and put fresh linens on every bed – even if you’re not expecting guests. Fluff the pillows, light a favorite candle, and place fresh flowers on the table. These small touches instantly make your home feel more luxurious.

If your budget allows, hiring a professional cleaning service can be one of the best staycation perquisites you make. After all, vacation should begin the moment you wake up and not after you’ve spent the day scrubbing floors.

Treat your staycation like a real trip. Set away messages on your phone and out of office notices on your email. Skip unnecessary chores for a few days. Giving yourself permission to relax may be the most valuable part of the entire experience.

One of the greatest advantages homeowners have over travelers is private outdoor living space. Whether it’s a spacious backyard, a screened porch, a rooftop terrace, or a cozy condo balcony, these areas can become the centerpiece of your staycation.

Stringing lights and adding comfortable seating, colorful planters, and outdoor rugs can completely transform the atmosphere without spending thousands of dollars. Add a portable fire pit, a tabletop fountain, or a hammock, and suddenly your backyard starts competing with many resorts.

Host an evening cookout, organize a game night, invite neighbors over for dessert, or gather around the fire pit for conversation after sunset. These simple moments often become the memories we treasure most.

Inside, transform your family room into a home theater complete with popcorn and comfortable blankets. Turn your breakfast room into a morning coffee café. Designate a quiet reading corner where phones are prohibited. Create a spa-like bathroom with plush towels, candles, bath salts, and relaxing music.

One of the highlights of traveling is experiencing new food. Instead of dining out every night, create themed dinners inspired by your favorite destinations. Prepare homemade Italian pasta one evening, Caribbean grilled seafood another, or a backyard Texas barbecue over the weekend. For a touch of whimsy, dress the part.

Pair each meal with music and libations from the region and enjoy dinner outdoors whenever possible. Suddenly, your dining room becomes part of the vacation experience instead of just another place to eat.

Families with children can turn a staycation into an adventure by seeing their home through a child’s eyes. Set up a backyard camping experience with a tent, flashlights, and s’mores around the fire pit. Transform the living room into an indoor campground complete with sleeping bags and a movie under a blanket “fort.” Organize a backyard Olympics with relay races, water balloon tosses, scavenger hunts, or miniature golf using household items. 

Encourage children to plan a family picnic in the backyard or on the patio, choose a theme for a movie marathon, or help prepare meals inspired by countries they’d like to visit someday. The goal is to create experiences your children will remember long after summer is over.

Enjoy the amenities you already pay for. Condominium communities and many planned neighborhoods offer amenities that residents often overlook.

Swimming pools, fitness centers, tennis and pickleball courts, walking trails, clubhouses, grilling stations, and community gardens are designed to enhance your lifestyle. During your staycation, make a point of exploring everything your community offers. You may discover you’ve been living beside your own private resort all along.

Real estate professionals often talk about resale value, appreciation, and return on investment. While those things certainly matter, there’s another return that’s harder to measure: the enjoyment you get from living in your home every day.

You don’t need a boarding pass to recharge. You don’t need a hotel reservation to make memories. Sometimes the perfect getaway is the one you already own.


Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH @properties. Call or text her at 202-246-8602, email her at [email protected] or follow her on Facebook at TheRealst8ofAffairs.

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Real Estate

When buying a home, it’s decisions, decisions, decisions

Keeping notes on the process makes for an informed purchase

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If you’re buying a home, take careful notes throughout the process. (Photo by Andy Dean Photography/Bigstock)

When looking to buy a home, there are lots of details to consider. Many of my clients would come to me and say, “Joe I want to buy a place, but I haven’t decided which neighborhood to buy in.” And the struggle was real. A few clients had everything decided from the color of the hallway walls to the cabinet handles and sometimes which three square blocks they wanted to look at. 

But other clients were occasionally looking at properties in areas as distinct as Union Market/NOMA, Brookland, Logan Circle, and then we would even go across the river to look at a property in Shirlington or the Van Dorn areas of Virginia, which all have their own unique flavor and characteristics.

Sometimes clients would tell me, “I only want to look in Mount Pleasant or Adams Morgan.” Or, “don’t even show me any properties west of this street or south of that street.” My job wasn’t to convince people where to live. It was to just take the parameters they set for me and find as good of a property in that zone as I could, coordinate the showings and, if necessary, offer the strategy.  

One can see that buyers often had more decisions to make than a seller. From a seller’s perspective, the house was where it was, and we just had to make the best of it. But working with a buyer could mean looking at five different neighborhoods, and then being a “thought partner” to help them figure out which were the top two or three areas they had seen, and then further distilling those down into what was available and weighing those options against each other. 

One house could have the dream bathroom but also be located six blocks further from a Metro stop, walkable shopping and dining, and “just too far away from my friends.” Another house could have all the neighborhood options a client was looking for, but was just not in turnkey condition, and would require an additional $30,000 of upgrades once purchased to make it into the dream home they envisioned.  

One activity I often asked buyers to do was to keep an active list in their heads of the properties they liked, and to keep a running rank of the top three. I often encouraged them to bring a notebook along on the journey where they could take notes and write down questions they thought of as they looked. It was an important decision, and sometimes the largest purchase of their lives. Why not take it a little seriously, and take notes? This could often help the buyer later when they felt it was time to decide.  

The point here is, keeping a notebook handy can sometimes help a person with what feels like an overwhelming process. It provides a space to explore how one feels, jot down important details to remember, and then use that to make an informed decision.  


Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].

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