Title can pass in ways other than a normal sale, and buyers protect themselves against hidden defects with title insurance. Both topics appear in the national Transfer of Title area.
Title evidence & insurance
- Title search / abstract
- A review of public records establishing the chain of title and any defects.
- Marketable title
- Title reasonably free of defects that a court would compel a buyer to accept.
- Owner's title policy
- Protects the buyer's ownership against hidden defects; a one-time premium.
- Lender's title policy
- Protects the lender up to the loan balance; usually required by the lender.
- Cloud on title
- A claim or defect that impairs marketability; may be removed by a quiet-title action.
Ways title transfers besides a sale
- Descent and devise — passing by inheritance (intestate succession or by will).
- Adverse possession — acquiring title by open, notorious, hostile, continuous use for the statutory period.
- Foreclosure — transfer when a borrower defaults on a secured loan.
- Eminent domain — government taking for public use with just compensation.
- Accession / accretion — gradual gain of land by natural deposit.
Recording gives constructive notice and sets lien priority — generally 'first in time, first in right,' except that property tax liens jump ahead. Virginia's adverse possession period is commonly tested; confirm the current statutory term.