TITLE INSURANCE

Title insurance is growing in popularity in Canada. But what is it exactly? Should you get it? Do you need it? Whether title insurance is right for you is something you should discuss with your lawyer, as it depends on the circumstances of your transaction. Here is some background information about title insurance to help you make an informed decision.

 

Title to Property

Title is the legal term for ownership of property. Buyers want "good and marketable" title to a property - good title means title appropriate for the buyer's purposes; marketable title means title the buyer can convey to someone else. Sometimes problems (or defects) regarding title are not discovered before closing or are not remedied before closing. Such defects can make the property less marketable when the buyer subsequently sells and can also cost money to remedy.

 

Who is Protected With Title Insurance?

Title insurance policies can be issued in favour of a buyer (on new/resale homes, condos and vacation properties), a lender, or both the buyer and lender. Lenders will sometimes require title insurance as a condition of making the loan. Types of risks that are usually covered under a title insurance policy include: survey irregularities, forced removal of existing structures, claims due to fraud, forgery or duress, etc..

In the case of title insurance covering the buyer, the premium for title insurance is paid once on or before sale completion date and the title insurance remains in effect as long as the insured buyer has title to the land.

 

Protection and Peace of Mind

Title insurance can help ensure that a closing is not delayed due to defects in title. And, if an issue relating to title arises with respect to a risk covered under the policy, the title insurance covers the legal fees and expenses associated with defending the insured's title and pays in the event of loss.

For more information on title insurance, please visit http://www.titleplus.ca/

 

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