title insurance

Title Insurance for Buyers, Sellers, Homeowners and Lenders.


Home property title insurance defends your title. Title is the legal term for ownership of property.

1. For Buyers

Home title insurance can safe-guard a closing delay due to defects in title. Title insurance covers legal fees and expenses defending title and pays in the event of a lossHome title insurance protects against loss or damage if a claim is made that is covered under the terms of the policy for a resale or new home purchase.
The cost of the premium, that is paid only once, depends on the value of the home and exactly what the policy includes. The policy is in effect as long as you own the home. The cost for buyers is usually included in the real estate lawyer’s fee. The lawyer’s fee in Ontario should be about $1100 including title insurance.
Home property title insurance can ensure a closing is not delayed due to defects in title.

2. For Sellers

a) The protection for sellers is quite similar to that of home owners. It can protect against a previously fraudulent sale of property.

3. For Home Owners

For home owners the cost is about $200 to $400.For home owners title insurance can protect against:

a) Fraud
Impersonation, fake ID, forged signatures that may be used to sell your property.
b) Protection
against someone claiming a legal interest in your property.
c) Protects against loss from pre-existing municipal work orders, survey issues, unpaid taxes by previous owners.

4. For Lenders

The policy is in effect as long as the mortgage loan is registered against title. The amount covered is usually up to the amount of the mortgage loan.



NOTES

1. The once only premium cost for title insurance is more if the property is not registered under the land titles system in Ontario.

2. Check with your real estate lawyer to find out exactly what is covered under your title insurance policy.

3. Land Titles system.
Title is guaranteed under the land title system.

4. Land Registry system is the original system for registered ownership of property.
Title is not guaranteed under the registry system.
It is possible to transfer title from the registry system to the land titles system. But the process is not easy.

Some hypothetical claims that may be remedied by title insurance.

1. Survey irregularities.
2. Forced removal of an existing structure. Because some previous cowboy owner did not obtain a building permit.
3. Claim due to fraud, forgery or duress.
4. Unregistered easements.
5. Lack of pedestrian or vehicular access,
6. Previous work orders,
7. Zoning and set-back non-compliance.

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