I recently received a call from an acquaintance regarding a property dispute she was having with a neighbour. To keep it brief, she claimed that the neighbour had moved a survey peg thereby making her property smaller and the neighbours property bigger. She was upset to say the least. After a number of questions we established that she had purchased 'Title Insurance' when she purchased the property. After conferring with a Lawyer regarding Title Insurance and reviewing some documentation on what it covers we recommended that she contact the Title Insurance company to see about making a claim. This is very recent so I don't know the outcome yet. Sometimes it's about knowing the right person to call. My goal is to be that person when it comes to your real estate needs as well as those of your friends, neighbours and family.
So, what does Title Insurance cover?
For a one-time fee, called a premium, a title insurance policy may provide protection from such losses as:
- Unknown title defects (title issues that prevent you from having clear ownership of the property);
- Existing liens against the property’s title (e.g. the previous owner had unpaid debts from utilities, mortgages, property taxes or condominium
charges secured against the property);
- Encroachment issues (e.g. a structure on your property needs to be removed because it is on your neighbour’s property);
- Title fraud;
- Errors in surveys and public records; and
- Other title-related issues that can affect your ability to sell, mortgage, or lease your property in the future.
Your title insurance policy will protect you as long as you own your property, and will cover losses up to the maximum coverage set out in the policy. It may also cover most legal expenses related to restoring your property’s title.
For more information click here for a link to a brochure provided by the Financial Services Commission of Ontario