Title Insurance in Virginia: A Norfolk Buyer’s Guide

Buying a home in Norfolk and hearing about title insurance for the first time? You are not alone. Between contracts, inspections, and closing prep, this can feel like one more box to check. The good news is that title insurance is straightforward once you know the basics. In this guide, you will learn what it covers in Virginia, how lender and owner policies differ, what to expect with costs and timing, and the Norfolk-specific issues to watch. Let’s dive in.

Title insurance basics in Virginia

Title insurance protects you from financial loss caused by defects in a home’s legal ownership that existed before you bought it. Unlike most insurance that looks forward, title insurance looks backward. It responds when a past error surfaces after closing.

Before closing, a title company searches public records and issues a title commitment that lists any items to resolve. After you close and the deed records, your policy is issued. If a covered problem appears later, the insurer can defend your title in court or pay a claim up to the policy limit.

Common covered risks include forged or fraudulent deeds, undisclosed heirs, clerical errors in public records, improperly recorded releases, and some unknown liens. For questions about regulated insurers in Virginia, you can contact the Virginia Bureau of Insurance.

Lender vs. owner policies

Most mortgages require a lender’s title insurance policy. It protects the lender’s interest up to the loan amount. It does not protect your equity or your personal legal costs beyond what benefits the lender.

An owner’s title insurance policy is separate and optional but strongly recommended. It protects you as the homeowner for the amount of the purchase price or the insured amount, and it lasts as long as you own the property. Without it, you would need to handle title problems on your own.

Key differences to remember

• Coverage focus: The lender’s policy protects the lender. The owner’s policy protects your equity.
• Term: Both are one-time premiums. The owner’s policy stays in force while you own the home. The lender’s policy declines as the loan is paid down and ends when the loan is satisfied.
• Who benefits: Only the insured party benefits from each policy.

Common endorsements

Endorsements add targeted protections. Availability varies by insurer, so ask for a clear explanation of what each endorsement includes and excludes.

• Survey or boundary endorsements for encroachments or off-record issues
• Plat or survey gap endorsement
• Zoning or land use endorsements with limited protections
• Mechanic’s lien, condominium or HOA endorsements

Standard exceptions

Policies often exclude certain risks unless endorsed. Be sure you understand these exceptions before closing.

• Unrecorded easements or rights-of-way
• Zoning and building code violations
• Environmental or physical property defects
• Survey or boundary disputes without a survey-related endorsement

Costs, who pays, and timing in Norfolk

Title insurance is a one-time premium you usually pay at closing. Premiums vary by insurer, policy type, endorsements, and title complexity. There is no universal rule for who pays. In many markets the buyer pays for the lender’s policy, and the owner’s policy is negotiated in the purchase contract. Local custom in Norfolk can vary, so confirm with your agent and the title company when you write your offer.

The title search and commitment are issued before closing. After closing, the settlement agent typically records the deed and mortgage with the Norfolk Circuit Court Clerk. Recording can be same day or take a few business days, depending on workload and procedures.

When title insurance pays and when it does not

Here are situations where an owner’s policy often helps:

• A forged signature or fraudulent deed surfaces from years ago
• An undisclosed heir claims ownership rights after you close
• A clerical error or incorrect legal description clouds title
• An old mortgage release was recorded incorrectly
• A previously unknown judgment or tax lien appears in the chain of title

Title insurance generally does not cover the following unless you have special endorsements:

• Zoning or building code violations
• Environmental contamination or physical defects to the home
• Unrecorded easements and some boundary disputes
• Liens you create after closing

Norfolk-specific issues to watch

Norfolk’s housing mix and history can add unique title details. A careful title search and the right endorsements can make a big difference.

• Older neighborhoods and long title chains: Historic areas can involve older records, informal transfers, or missing early signatures. A survey endorsement may be helpful if a new survey is not available.
• Historic districts and preservation covenants: Neighborhoods such as Ghent and Freemason may include recorded restrictions or preservation easements. These affect use and should be reviewed during your title commitment period.
• Waterfront and riparian rights: Properties along rivers, creeks, and the harbor can raise shoreline and boundary questions, including past fill or encroachments. Ask about survey and boundary endorsements.
• Military-adjacent considerations: Some properties carry recorded easements, such as noise easements, related to nearby installations. These should appear in the title search so you can review them.
• Flood and municipal assessments: Confirm property tax status and check for unpaid city assessments that can create liens, such as stormwater or curb and sidewalk charges.
• Condominiums and HOAs: Past due association assessments can create liens. Ask whether your policy or an endorsement addresses these risks.

Your Norfolk title checklist

Use this quick plan to protect your equity and close with confidence.

1. Request your preliminary title report early. Review every exception with your agent and the title company. Ask what each item means and whether it can be cleared or insured around.

2. Clarify who pays which premiums. Confirm whether you or the seller will pay for the owner’s policy in the contract, and verify which title insurer your lender requires.

3. Consider an owner’s policy plus endorsements. Discuss survey or boundary endorsements, condo or HOA coverage, and any endorsements relevant to waterfront, flood, or utility easements.

4. Order or update a survey when appropriate. If the home is older, waterfront, or in a dense area, a current survey can help you catch boundary or encroachment issues early.

5. Review recorded documents affecting use. Look at covenants, easements, alley or access rights, and any historic or preservation restrictions.

6. Confirm taxes and municipal charges. Check with the Norfolk Commissioner of the Revenue and, if needed, the Circuit Court Clerk for any outstanding liens or judgments.

7. Ask about recording timelines. Find out how soon the deed and mortgage will be recorded and how you will receive your final policy and recorded documents.

How to get started

If you are financing, your lender will require a lender’s policy. To protect your equity, add an owner’s policy and talk through endorsements that fit your property type and location. Start with the title commitment, ask for plain-English explanations, and build the right coverage into your contract.

If you want a disciplined, step-by-step process tailored to Norfolk and the broader Hampton Roads market, connect with Jean Johnson. You will get a clear checklist, coordinated communication with your title company and lender, and guidance from contract to recording. Tell Us About Your Move.

FAQs

Do Norfolk homebuyers need an owner’s policy if the lender requires title insurance?

• Yes. The lender’s policy protects the lender only, while an owner’s policy is the practical way to protect your equity and legal rights.

Is title insurance a recurring expense in Virginia?

• No. It is typically a one-time premium paid at closing that covers title risks that existed before your policy date.

Who usually pays for title insurance in Norfolk, Virginia?

• It depends on the contract and local custom. Buyers often pay for the lender’s policy, and the owner’s policy is negotiable. Confirm terms with your agent and title company.

What title issues are not covered without endorsements?

• Zoning or building code violations, environmental matters, unrecorded easements, and most survey or boundary disputes are usually excluded unless you add specific endorsements.

How do I know my Norfolk home’s title is clear before I close?

• Review the preliminary title report and commitment. Any unresolved exceptions should be addressed or insured before closing.

Who do I contact if a title problem appears after closing?

• Contact the title insurance company listed on your policy. Your policy includes instructions for filing a claim and how the insurer will defend or settle covered issues.