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GENERAL SEARCH INFORMATION:

 40 years for a full search on residential property
 60 years for a full search on commercial property (purchase and/or refi)
 A derivation clause must be included in the legal description
 After-acquired title is recognized as long as the following elements are met
o Deed into the ultimate grantee must be a Warranty Deed
o The grantor on the Warranty Deed must exactly match the grantee on the
next deed
o The legal description on the Warranty Deed must exactly match the legal
description on the next deed
o Examples –
2000 – WD from Mary Williams to Peter Peterson
2001 – WD from John Johnson to Sam Smith
2002 – QD from Peter Peterson to John Johnson
 Sam Smith, the ultimate grantee, would have good title because
the deed where he acquires title is a Warranty Deed

2000 – WD from Mary Williams to Peter Peterson

2001 – QD from John Johnson to Sam Smith
2002 – WD from Peter Peterson to John Johnson
 Sam Smith, the ultimate grantee, would not have good title
because the deed where he acquires title is not a Warranty Deed
 We would need to require a new deed from John Johnson to Sam
Smith
 Illegal Subdivision- Check for an illegal subdivision for purchases for VA
properties. (not necessary to check for a refi if we are issuing a short form loan
policy or a 2006 loan policy form). If a lot was subdivided prior to the date the
ordinances went into effect, you’re ok to proceed. If the subdivision/split was done
after that date, a new plat must be recorded. Be cautious and check this every time
your legal description is a part of or portion of a lot. NOTE: this doesn’t apply for
condo units per Frank B, if our subject property is a condo unit, you do not need to
check for illegal subdivision in the chain
o Virginia Beach 1/26/1953
o Chesapeake 1/19/1982 1/19/1963
o Norfolk 12/31/1950 8/19/1948
o Portsmouth 1961
o Hampton 1956
o Suffolk 8/1/1953
o York Co 1953
o Isle of Wight Co 1969
o Newport News 1948
 Exception for standard policies
This policy does not insure as to matters relating to or arising from the compliance
with applicable subdivision ordinances.
 Exception for enhanced/homeowners policies
This policy does not insure as to matters relating to or arising from the compliance
with applicable subdivision ordinances, including the coverage provided in Covered
Risk numbers 14 (e) and 16.

TENANCY, VESTING AND MARITAL STATUS ISSUES:

 Tenancy by the Entirety is recognized

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o Cannot assume TBE if deed just reflects grantees as h/w

o If deed shows h/w but doesn’t also state TBE or “joint tenants with rights of
survivorship”, Tenants in Common is presumed
 Multiple grantees, including husband and wife, are presumed to be Tenants in
Common unless specifically stated otherwise in the deed
 In order for a Joint Tenancy to have survivorship rights, the deed must contain the
specific language “Joint Tenants with Rights of Survivorship”, otherwise the
tenancy is considered Tenants in Common
 “Joint Tenants with Rights of Survivorship” between a husband and wife is
considered Tenants by the Entirety
 Tenants by the Entirety is converted to Tenants in Common upon divorce
 Marital status of parties should be included on recordable documents but is not
required
 Deed from one spouse to the other when title was taken as TBE, without both
spouses join the conveyance and unless a final divorce decree has been rendered,
any attempted conveyance b one spouse is ineffective
 A deed into grantees as Tenants by the Entirety with Rights of Survivorship implies
joint tenancy with survivorship even if the parties are not actually husband and wife
o Frank Butler (Fidelity) says we have two cases from the Virginia Supreme
Court, Funches v. Funches and Gant v. Gant, that dealt with deeds that
conveyed property to two people as H/W TEw/ROS, but who were not married
to each other.  In both cases the court relied on the survivorship language in
the deed to find that a joint tenancy with right of survivorship had been
created
o in addition, there is § 55-21, which says that that survivorship is created
"when it manifestly appears from the tenor of the instrument . . . that it was
intended that the part of one dying should then belong to the others".

JUDGMENTS/LIENS – DURATION AND ATTACHMENT ISSUES:

 Judgments
o Good for 20 years and can be renewed
 However, if the person the judgment is against sells to a third party
for full consideration (not to a family member, not by quitclaim
deed, not as a gift, etc.) the judgment expires 10 years after date
of the sale
o Judgments attach to after-acquired property
 EXCEPTION: Judgments to not attach to real property acquired after
the date the judgment debt has been discharged in BK
o Judgments against one spouse only do not attach to property held as Tenants
by the Entirety unless refinanced or transferred to new owners
 The judgment will attach, however, upon the death of the person the
judgment is not against or upon divorce
 We will need a Continuous Marriage Affidavit in order to remove this
type of judgment from title
o Judgments against one Joint Tenant will attach to property with the following
exception
 If held as “Joint Tenants with Rights of Survivorship” (must have this
specific language) AND the joint tenants are actually husband
and wife, the judgment will not attach until death or divorce
 We will need a Continuous Marriage Affidavit in order to remove
this type of judgment from title

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o Judgments against a trustee of a trust do not attach to property held in trust

as long as it remains in trust
 However, if the property was ever vested in the individuals before it
was transferred to trust, judgments filed before it was put in trust
would attach to the property
o Purchase Money Deeds of Trust have priority over all judgments,
regardless of when docketed, and over all association liens including IRS
liens
o Purchase Money Deeds of Trust do not have priority over real estate taxes
or water and sewer liens or federal judgments including some
federally backed student loan judgments *check with UW counsel*
 Only show buyer governmental judgments on our
commitments, other liens are junior to our PMM
 Federal Judgments (where United States is a party)
o Good for 20 years
 Federal Tax Liens
o Good for 10 years and 3 months and can be renewed
o Federal Tax liens against one spouse always attach – no exceptions
o Federal Tax liens attach to after-acquired property
 State Tax Liens
o Good for 10 years and can be renewed
 Municipal Assessment Liens
o Good for 20 years
 Mechanics’ Liens
o Must be filed within 90 days of the last day of the month in which work was
completed or last materials were delivered
o Good for 6 months from filing or within 60 days after work is complete,
whichever is later
 Criminal Judgments
o Attach to real property if money judgment is filed in the Circuit Court
Judgment Lien Docket
 Federal Estate Tax Liens
o Good for 10 years from date of death of decedent
o These are not filed in the land records but arise by operation of law when
taxes are applicable
 State Income Tax Liens
o Good for 10 years
 State Estate Tax Liens
o Good for 10 years from date of death of decedent
 UCCs
o Good for 5 years
o May be continued for 5 year periods if continuation is filed within 6 months of
expiration
 HOA liens
o Make sure you are dealing with a LIEN and not a JUDGMENT. Judgments are
good for 20 years. Liens are good for 36 months/
o Superior to all other liens/encumbrances except real estate liens, liens
recorded prior to the declaration, sums unpaid and owing under and mtg or
DOT recorded prior to the perfection of said lien
o memorandum of lien must be perfected into judgment within 3 years or it
expires

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o memorandum of lien must be filed within 12 months of the assessment

becoming due and payable
o if memorandum is perfected into judgment and that judgment is
satisfied/released, the memorandum is also released

MORTGAGES:
 Mortgage can be removed from title
o 10 years after maturity date if maturity date is shown on or can be
determined from the face of the mortgage
o 20 years after executed date of mortgage if no maturity date is referenced
o Exception
 Credit line or HELOC can be removed from title 40 years after
executed date if no maturity date is referenced
 Automatic subordination is allowed if certain criteria are met
 Mods and Governmental Agency Liens
o Watch for improper payoffs of HAMP or HAP liens, require separate payoffs for
funds owned to GSE even if the 2nd has the same loan # as the 1st

LIFE ESTATES:
 Life tenant and remaindermen must sign deeds and deeds of trust

DIVORCE:
 Divorce decree can be used to transfer title if it is specific as to who gets the
property
 Certified copy of the divorce decree must be filed in the land records

TRUSTS:
 Deed into a trust can be into the trust itself without naming the trustee as the
grantee
 Deed into a trust can be into the trustee without naming the trust
 If deed into the trust cites VA statutes that provide the necessary powers for our
transaction, we do not need to review the full trust. Do still need a trust affidavit
at/before closing.
 NOTE: I usually ask that the Certification of Trustee be recorded with our docs but
we had a file where the trustee’s powers were cited on the vesting deed and their
attorney refused to record the Cert of Trust with the new deed (trust was selling)
and Renee was ok with that
 Reference in Trustee’s Powers section of trust to §64.1-57 (old law), Title 64,
Chapter 7, the Uniform Trust Code, or specifically, §64.2-778, of the Virginia Code
gives the trustee power to
o Borrow money
o Encumber trust property with a deed of trust
o Sell and convey property
 Testamentary Trustees (Trustees under a Will)
o Must qualify before the clerk and post bond before they have the power to
convey
 If the testamentary trustee is also named executor. If the executor
has the power to sell, have them sign as executor instead or in
addition to as trustee

POWERS OF ATTORNEY:
 Documents signed using a power of attorney should be signed as follows

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o <Name of Agent> as agent/attorney-in-fact for <Name of Principal>

under POA dated <Date of Power of Attorney>
 Agent must execute an Affidavit of Full Force and Effect at closing
 Attorney-in-Fact cannot use a Power of Attorney to convey property to
himself/herself without a specific grant of such power
o A deed signed by the attorney-in-fact that conveys to the agent is void as
being self-dealing

ESTATES:
 If decedent died testate (with a will)
o We must get a complete copy of the will
o We must have an order admitting the will to probate
o Will must be recorded in the land records
o Once this is done, title to property will be in the person(s) named under the
will unless the will directs the executor to sell
 Will must specifically direct the executor to sell, not just give the
power to sell
 If will directs executor to sell, title is vested in the executor to carry
out terms of will only
 If executor sells or mortgages the property, the person(s) named in
the will must sign the deed or deed of trust
o If the Will only specifically bequeaths residuary estate, the executor can
convey on behalf of the estate provided the will grants him such powers
 Statute 64.1-57 gives the executor the broadest powers possible
 Statute 64.2-105 gives the executor the power to sell and convey
o If the Will specifically bequeaths real estate to heirs, said heirs should join in
the conveyance if selling
 Signature not needed for Spouses of heirs/devisees that were awarded
property since it’s an inherited right in real estate that hasn’t been
significantly supported by marital assets
o FOREIGN DECEDENTS
 VA law applies to VA property… if probate filed elsewhere, also needs
filed in VA
 If decedent died intestate (without a will)
o Must get the following documents before we can revise vesting
 Death Certificate
 Heirship Affidavits from 2 unrelated parties signed
o Once the above items are obtained, we can show title in the heirs of the
decedent as follows
 If decedent died with a spouse only or a spouse and children who are
children of both the decedent and surviving spouse, title passes to the
surviving spouse in whole
 If there are children of the decedent who are not also children
of the surviving spouse, property goes to both surviving
spouse and children
 If no surviving spouse, then to children and their descendants
 If no living children or their descendants, then to parents
 If no living parents, then to siblings and their descendants
 Creditors have 1 year from the date of death of the decedent to file a claim against
the estate
 Federal Estate Tax Liens are good for 10 years from date of death of decedent
 State Estate Tax Liens are good for 10 years from date of death of decedent

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 Must require proof that Federal Estate Taxes have been paid

GUARDIANSHIP:
 If a title-holder has a guardian appointed for them, we must have an order
specifically allowing the guardian to perform our particular transaction
 You will most like find a guardian when a title-holder is
o A minor
o Incompetent

LIS PENDENS:
 We must look to the underlying lawsuit to determine the effect of the Lis Pendens
o If the underlying lawsuit has been fully adjudicated, the Lis Pendens has no
further affect and can be removed
 We must take into account any final judgment on our report
o If the underlying is not fully adjudicated, we must require that it be dismissed
before we can proceed
o If no underlying lawsuit has been filed and the Lis Pendens is 5 years or older,
we can remove
o If no underlying lawsuit has been filed and the Lis Pendens is less than 5
years old, we must get a termination

FORECLOSURES:
 Foreclosures can be accomplished by
o Trustee’s Sale
 If conducted by a substitute trustee, the trustee must be appointed
prior to any action taken by the new trustee
 Substitution of Trustee can be recorded at the same time as the
Trustee’s deed
o Filing a lawsuit
 There is no redemption period after sale except for the below regarding Unites
States’ interests
 All superior liens remain liens on the property
 All junior liens are wiped out if proper notice is given
o Obtain a Trustee’s Affidavit or similar doc to confirm proper notice was given
o OR - If recitals are in the Trustee’s Deed, they are presumed to be true
 Junior lienholders may not need notice depending on statements on
the Trustee’s Deed. Trustee’s Deed sets forth requisite facts that is
sufficient since those facts are under oath.
o Condominium liens recorded after a first deed of trust securing an
institutional lender are subordinate to, and are extinguished by the
foreclosure of such a deed of trust if the required notice was given.
o The lien of judgments in favor of the condo association are also extinguished
if they are the result of the condo lien and they were recorded after the deed
of trust which later got foreclosed.
 United States has 120 days after the sale date to redeem if there is a federal tax
lien on the property
o Policy issued within this 120 day period must except to the United States’
right of redemption
o IRS must be given notice at least 25 days prior to the FC sale.
 If the notice was not timely, the URS must consent to the sale, which
waives the lien and the right of redemption.

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 United States has 1 year after the sale date to redeem if there is any federal lien or
judgment other than a federal tax lien on the property
o Policy issued within this 1 year period must except to the United States’ right
of redemption
 HOA liens are subordinate to all DOTs securing any lender
 Condo liens are subordinate only to a FIRST trust lien securing an institutional lender
 Notice is required to extinguish the lien of an HOA or Condo lien IF the lien is
recorded at least 30 days prior to the Trustee’s Sale
 Need full copy of the foreclosed DOT to review requirements for # of
advertisements/publications.
 Compare the recitals in the trustee’s deed with
o the terms of the deed of trust foreclosed,
o the appointment of the substitute trustee,
o minimum statutory requirements, and
o the final accounting filed by the trustee. 
 Check to make sure the debtor wasn’t in bankruptcy at the time of sale, or if he was
that a court order allowed the sale.  The more recent the foreclosure, the more
details need to be verified. 

BANKRUPTCY:
 A lien for a debt that was included in bankruptcy must remain on title unless we have
an order from the Bankruptcy Court vacating or avoiding that lien
o Bankruptcy only relieves the debtor of the underlying debt
o The lien remains on the property until it is released/satisfied
 One exception – a lien for a debt that was included in bankruptcy does not attach to
property which was acquired after the bankruptcy was discharged if
o The discharge was granted and
o The debt was listed in the bankruptcy schedules and
o The debt is not non-dischargeable (ie: student loans, child support, etc.)
 If a borrower has filed bankruptcy, we may only conduct a closing for that borrower
o After the bankruptcy case is discharged and closed, or
o If we have an order from the bankruptcy court allowing us to do so
 We may not record a mortgage if a borrower has filed bankruptcy unless
o The bankruptcy case is closed or
o We have an order from the Bankruptcy Court allowing us to do so

TAX SALES:

MOBILE HOMES:
 Conversion of Manufactured Home to Real Property effective 7/1/2014
o Submit Affidavit Regarding Manufactured Home Conversion to Real Property
Form VSA35 to the DMV
o The DMV will rescind and cancel the vehicle title and issue confirmation that it
has been surrendered and cancelled
o Owner must then file the Affidavit Regarding Manufactured Home in the
Clerk’s Office
o After this Affidavit Regarding Manufactured Home is recorded, the
manufactured home is deemed to be real estate
 For conversion of double-wide manufactured homes to real estate

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o Never assume the DMV title was surrendered. You must get a report from the
DMV which confirms the title was surrendered or indicates no title was found.
Be sure you’re using the VIN to search DMV records
o If a DMV title exists and has not been surrendered on a home that was
permanently affixed and taxed as real estate prior to 7/1/2014, then the
home is not considered real estate and the title must be surrendered under
the new statutory scheme
o Since 7/1/2014, a manufactured home is not considered real estate until an
Affidavit Regarding Manufactured Home is recorded in the Clerk’s Office. Most
modern form DOTs use language that described the secured collateral to
include future improvements which would incorporate the converted
manufactured home as collateral even if the Affidavit is recorded AFTER the
DOT. Be sure your DOT includes that language or the manufactured home
may not be properly secured

FORMS OF CONVEYANCE:
 Quitclaim Deed
 Deed of Trust

PREPARATION OF DOCUMENTS:
 Deeds and Powers of Attorney can be prepared by
o Attorney
o Parties to the transaction
 Power of Attorney must include language that it does not terminate on the disability
of the principle
 Deeds of Trust can be prepared by
o Attorney
o Lender
 Satisfaction can be prepared by
o Lender
o Title Company
 Tax map or parcel ID numbers may be required on Deeds and Deeds of Trust to
record

SPOUSAL SIGNATURE:
 Signature of non-titled spouse is required on deeds in the following circumstances
o The transaction is not arms-length – not to a bona fide purchaser for value
o The transfer is for no consideration
o Transfer is between family members
 Signature of non-titled spouse is not required on deeds in an arms-length
transaction
o Also see Estates section above for heirs/devisees
 Waiver of spousal signature is not permitted
 Signature of non-titled spouse is not required on deeds of trust

CLOSING:
 Only attorney or licensed title agent can close
o Closing agent must be registered with the state bar per CRESPA
 Mortgage must be recorded prior to disbursing funds on all first liens
o This applies to both purchases and refinances when our lender will be in first
lien position

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o This does not apply when our lender will be in second lien position

COMMUNITY PROPERTY ISSUES:

 Not a Community Property State

WHO CAN ACT AS TRUSTEE:

 Individual who is resident of Virginia
 Corporation with the principal place of business in Virginia
 Address of trustee must be included

WITNESSES AND NOTARY ACKNOWLEDGEMENT ISSUES:

 Witnesses are not required
 Neither notary stamp nor seal is required
 Recordable documents must be notarized
 The signature of whoever is being acknowledged must appear on the same page as
the acknowledgement

MISCELLANEOUS ISSUES:
 Survey coverage is included in the 2006 owner’s and loan policy jackets
o For loan policies
 Neither a survey not a survey exception are not required for
 Residential subdivision lots or
 Residential acreage of 15 acres or less
 For any other type of property, the following survey exception must
appear on the policy unless we receive a current (within the last 12
months) survey:
 “Such state of facts as would be disclosed by an accurate
survey and inspection of the premises”
o For owner’s policies
 The following survey exception must appear on the policy unless we
receive a current (within the last 12 months) survey:
 “Easements or claims of easements not shown by the public
records, boundary line disputes, overlaps, encroachments and
any matters not of record which would be disclosed by an
accurate survey and inspection of the premises”
o Deletion of the survey exception by use of a survey affidavit may be available
on a case by case basis – please contact the Compliance Department if you
receive a specific request
 A derivation clause must be included in the legal description
 Escheats of Land
o Escheats of land are considered on a case by case basis.  They are not court authorized
proceedings, so no court reviews anything.  The normal search requirements apply.  40
year search for residential property and 60 year search on commercial property.
o The escheator, normally a local attorney, presents evidence to a jury which renders a
verdict as to whether the property should be escheated to the Commonwealth of
Virginia.  The Code requires the verdict be recorded, so the examiner has to find the
recorded verdict.  The examiner will need to determine if the escheator showed the
correct owner at the time of the escheat, so outstanding ownership issues are a
concern.
o An insurable legal description is required.  Many times the document that gets recorded
to the buyer conveying title from the governor has a vague description taken from the

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Assessor’s records, which will not work for us to insure title.  If there is a prior, better
description, the examiner will need to refer to it.  If it is a lot that was possibly illegally
subdivided, the examiner must say so in the search.
o Another major concern is access.  There must be access to the property by a public
street or properly granted recorded easement, or an exception for access must be used.

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