WHAT IS TITLE INSURANCE!

  Title insurance in short is a insurance product that is meant to protect an owner's or lender's financial interest in real estate properties against loss due to title defects.

WHO CAN BENEFITS FROM TITLE INSURANCES.

  • home purchasers
  • existing home owners
  • residential and commercial lenders
  • commercial property buyers

WHAT KIND OF PROPERTIES AND MORTGAGES DOES TITLE INSURANCE COVER.

Title insurance covers residential and commercial properties and mortgages. the policies vary between residential and commercial properties.

HOW CAN YOU GET TITILE INSURANCE.

Most title insurance can be obtained through a lawyer/notary. The lawyer / notary completes the due diligence searches required to obtain a policy and contacts the title insurer to arrange for the policy. Talk to the lawyer you are going to use for your real estate needs about title insurance because not all lawyers use title insurances.

WHAT DOES TITLE INSURANCE COVER

Title insurance covers number of things, that are due to title defects. These insurance policies vary from company to company. Most title insurance will cover the following:

HOME OWNER'S OR PERSONNEL TITLE INSURANCE

  • Liens or encumbrances on title
  • Tax arrears
  • work orders
  • Other parties owning an interest in a title
  • Many forms of title fraud
  • Encroachments onto an adjoining property, other than fences and boundary walls
  • Lack of a legal right of pedestrian and vehicle access to and from the Land
  • Violations of municipal zoning by-laws
  • Unmarketability of the title to the property
  • Setback violations
  • Legal fees associated with a covered title risk as per the duty to defend contained within the policy
  • Types of residential properties that may be insured include: condominiums, cooperatives, cottages, leased land and vacant land.

COMMERCIAL PROPERTIES

  • Liens or encumbrances on the title
  • Lack of legal access to the property
  • Unmarketability of title
  • Invalidity or unenforceability of the insured mortgage on title
  • Legal fees associated with a covered title risk as per the duty to defend contained within the policy
  • Types of commercial properties that may be insured include: business centres, golf courses, hotels, office towers and resorts

LENDER

  • The invalidity or unenforceability of the insured mortgage upon the title
  • The priority of any lien or encumbrance over the insured mortgage
  • Unmarketability of the title
  • Lack of a legal right of pedestrian and vehicular access to and from the Land
  • Legal fees associated with a covered title risk as per the duty to defend contained within the policy.      

I hope this gives you better understanding of what title insurance is. How this insurance product can protect you, save money and legal issues.

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Martin Darknell

Martin Darknell

Chartered Real Estate Agent
CENTURY 21 PowerRealty.ca
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