Lien on Me…and Then Some

A possible tagline for Title Insurance and here's why.

When you buy a home, title Insurance can protect you against threats to your title for as long as you own the property.

Much of a title policy states what's covered, what's not covered, limitations and exceptions to coverage.

The following gives examples of what's covered:    
--Liens due to a mortgage, judgment, tax, special assessment , public utility or a charge by a condo corporation; liens due to a local improvement charge for portions before policy date; mechanics and construction liens prior to policy;

--Problems of access to the property

--Someone else owns an interest in your title, arising out of a lease, contract or option, has rights arising out of forgery or impersonation or has an easement on your land.

--An improperly signed document, making title invalid;

--The address of home is not located on the land;

--Claims arising out of fraud, duress or incompetency;

--Your title is taken or you are forced to correct or remove an existing violation of a restriction or condition;

--The property in not marketable because it violates a restriction, because of problems that would have been disclosed by an up-to-date survey, the land violates an existing zoning bylaw and your structure--or part of it--may be on land under authority of a government agency.

--You are forced to remove or remedy all or part of your existing structure because it was built without a building permit, it violates an existing zoning by-law, it encroaches on a neighbour's property, is located on land under the power of a Government Authority, because of a notice of violation or deficiency or it encroaches onto an easement.

--Supplemental real estate taxes, not previously assessed, for periods before the policy;

--Rights of possession by others under family law;

--Violations to government restrictions of subdivision of land or to subdivision or development agreements;

--Work orders you did not agree to be responsible for;

--Your structure has been damaged because of a right to maintain or use an easement affecting the land;

--Someone builds a structure encroaching on your land;

--Other liens, defects or charges. (Source: First Canadian Title)

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