Most Lenders today require Title Insurance yet most of us do not know what it is, what it does and what's the purpose. Here's the low down;
What is Title Insurance?
Title insurance is an insurance policy that protects you, the home owner, against challenges to the ownership of your home or from problems related to the title to your home. The policy provides coverage against losses due to title defects, even if the defects existed before you purchased your home. A title defect is a problem with the title which prevents free and clear ownership. There are many types of defects such as rights of way, encroachments (from neighbouring properties), unpaid liens, etc.
Title insurance policies protect you for as long as you own the property. It protects against a number of risks that a solicitor's opinion on title may not cover. These risks include:
Title insurance policies protect you for as long as you own the property. It protects against a number of risks that a solicitor's opinion on title may not cover. These risks include:
- Fraud and forgery, including someone taking your title through fraud or forgery
- Encroachments that would be disclosed by a new survey (for example, a neighbour's deck being partly on your land)
- Easements (the right acquired for access to or over another person's property for a specific purpose, such as for a driveway or public utilities. This is referred to as "servitude" in the Province of Quebec) over the property that would be disclosed by a new survey
- Zoning non-compliance (i.e. where the property use does not meet the local municipal by-laws)
- Someone other than the home owner having interest (i.e. a previous owner of the property not being discharged from title)
How Do I Know if I Need Title Insurance?
If you are purchasing or refinancing your home, you should discuss title insurance with your lawyer/notary to see if a title insurance policy is right for you. Your lawyer/notary can arrange the purchase of a home owner's policy.Benefits of Title Insurance
Peace of mindAs the policy covers the items outlined above, you can rest easy knowing if there are defects affecting the title of your home that are covered by the title insurance policy, your title insurer will take steps to rectify the problem.
One time cost
The premium is usually due at the time of closing for purchases or refinances. Some insurers permit you to purchase title insurance at any time.
(Information courtesy of http://www.rbcroyalbank.com/mortgages/title_insurance.html)
Recognized Providers of Title Insurance:
Chicago Title Insurance Company www.ctic.com
FCT Insurance Company Ltd. (carrying on business under the name First Canadian Title) www.firstcanadiantitle.com
Lawyers' Professional Indemnity Company (TitlePlus) www.lawpro.ca
Travelers Guarantee Company of Canada www.travelersguarantee.com
Stewart Title Guaranty Company www.stewart.ca
As with all my blog, if you have any questions regarding this or any other matter regarding real estate, please do not hesitate to email me at any time. It's better to have an answer than to wonder! nicole@gtalisted.com
Nicole Kreutzberg, Realtor
Sutton Group Assurance Realty
(416) 388-7384
Original Blog can be found at my website:
Title Insurance | Blog | Nicole Kreutzberg & Laszlo Koos
Original Blog can be found at my website:
Title Insurance | Blog | Nicole Kreutzberg & Laszlo Koos
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