Virginia Title Search

Title Searches in Virginia

A title search is a crucial part of buying property. Typically handled by a title search company, independent abstractor, or the buyer's attorney, a mortgage lender or investor can also initiate it to confirm legal ownership and uncover any claims against the property.

The process starts with the abstractor locating the property in the county's assessment records. Here, they obtain vital details such as the parcel number (a unique identifier for the property), legal description (a detailed geographic description of the property's location), owner's name, and assessed values.

The abstractor will then check the property's tax status, reporting at least the current year's status and any past delinquencies. The report will also note if any delinquent taxes exist, putting the property at risk of tax foreclosure.

Next, the abstractor begins the search for property-related documents. This search is conducted either at the county recorder's office or through online records. For a document to be valid, it must go on record in the county's public land records.

Once drafted, a document is sent to the county recorder's office for verification and recording, making it official. All recorded documents receive a document number and exist in a searchable database. Documents about a specific property will include the legal description and parcel number.

The abstractor searches the records using the current owner's name, focusing on documents that match the legal description and parcel number of the property in question.

Different Types of Title Searches

Title searches can vary in scope and detail. The most common types are:

The Current Owner's (O&E Report): traces the property back to the deed by which the current owner obtained the title.
Two Owner: searches go back to when the prior owner obtained the title.
30-Year: searches cover the property's history over 30 years.
Full State Statute: searches are based on state statutes to issue insured titles.
Assignment Verification Report (AVR): focuses on assignments and mortgage-related documents to verify the last mortgage holder or assignee.

Importance of Having a Clear Title

A clear title means no disputes over property rights or encumbrances on the property. Also known as "free and clear," a clear title is crucial to ensure that the sale of the property cannot be contested.

Purpose of a Title Search

The two primary purposes of a title search are to determine the property's lawful owner and identify any outstanding debts tied to the property, such as mortgages, taxes, and liens.

Parties Involved in a Title Search

Various parties order a title search, including:

Attorneys
Title companies
Lenders
Investors
Homeowners

Types of Information Uncovered in a Title Search

A title search will uncover:

Unpaid debts tied to the property, such as municipal liens and HOA liens.
Outstanding mortgages and associated documents, such as assignments and modifications.
Foreclosure actions.
Judgments and liens against the property and the owner.
Property tax status (paid or delinquent).

Identifying Potential Issues with the Property

A title search can reveal hidden issues such as:

Invalid or fraudulent deed transfers.
Boundary line disputes.
Missing interest from a prior owner.
Unpaid liens.
Ensuring the Seller Has the Legal Right to Sell the Property
The title report will list all parties who own the property and provide a copy of the deed. Ensuring that the seller owns 100% interest in the property is essential, as all interest holders must sign the deed.