– What You Should Know About Title Insurance –
Title Insurance, for many, is one of those things where you’ve heard of it but aren’t really sure what it does cover or if it’s worth investing in.
Well we are here to fill in all of those blanks for you!
– WHAT IS TITLE INSURANCE? –
Title insurance is a policy that protects property owners & their lenders ( also known as the mortgage provider) against losses related to title or ownership.
– DO YOU REALLY NEED TITLE INSURANCE? –
While it is not a requirement to have title insurance in Ontario, deciding if & what type of insurance you could obtain should be discussed with your lawyer, mortgage broker & insurance provider.
– WHAT DOES TITLE INSURANCE COVER? –
For the one-time premium (read fee), you may be covered for:
- Unknown title defects which is any issue that prevents you from owning the home free & clear
- Existing liens against the property’s title — so things like, unpaid debts to utilities, property taxes, mortgages or condo fees
- Encroachment issues such as a structure on your property that needs to be removed because it is partially on your neighbours lot
- Title fraud which happens when someone steals your identity & forges documents refinancing or outright selling your home without your knowledge
- Errors in surveys & public records
- And any other title-related issues that could affect your ability to sell, mortgage or lease your property
– WHAT DOESN’T TITLE INSURANCE COVER? –
(Pay close attention to your specific policy for clarification)
- Known title defects that were revealed prior to purchasing the home
- Environmental hazards like soil contamination
- Native land claims
- Any physical damages to your home – flooding, fire, sewer
- Wear & tear like windows, furnace, etc.
- Problems discovered by a new survey or inspection — like if your property is smaller than you understood it to be.
- Zoning bylaw violations from any changes or renovations you make while living there
- Theft of your property, etc.
Of course there is a free download (CLICK HERE) to find out more about:
• Extended title insurance,
• Owner’s vs. Lender’s Policy,
• Types of coverage,
• how to make a claim, etc.
We want to leave you with some final tips:
- Secure your policy for the full value of your home
- The effective date is the same as the closing date (for policies beginning at the time of purchase)
- You can buy title insurance after closing, even if years have gone by & it’s worth looking into
- Review the policy to ensure it describes your property correctly
- Make sure you understand what title-related losses your policy will cover & what it won’t
- Title insurance does not replace the legal advice of a lawyer
- If you are a victim of title fraud, go to www.gov.on.ca/LTAF
Thank you for stoping by — we are always available to help with your real estate questions, so please don’t hesitate to ask!
– Keeping it Genuine –
Your Realtors,
The Edwards Team Of Todd Real Estate Ltd., Brokerage
The Genuine Blog
