Title Insurance in Real Estate Transactions
What is Title Insurance?
Title insurance protects property owners from losses that could potentially arise regarding the legal ownership of a property. As a present title owner it is crucial to have a clear ownership “title” to the property. Despite the current owner being at no fault, these issues can always arise. Without title insurance, it would be very costly and difficult to correct these mistakes.
Minhas Lawyers understands the importance of obtaining a title insurance policy in our real estate transactions and ensures that our clients understand what they are purchasing along with the importance of having such a policy.
Title insurance must be purchased by the lawyer directly and cannot be procured by either the purchaser or the mortgagee.
Title Insurance Costs
Title insurance is available at a one-time premium that is calculated on the basis of the value of your property.
What Types of Properties Can Be Insured With Title Insurance?
- Residential properties (resale or builder)
- Rental units and properties that are leased
- Vacant land and rural property
What Does Title Insurance Generally Cover?
The coverage of title insurance may vary depending on the company that the coverage is with. Generally, title insurance covers the costs of;
- Title defects or title frauds that were unknown at the time of the purchase
- Liens placed against the property
- Fraudulent mortgages
- Claims of property possession
- Encroachment issues
Off- Title Issues Covered By Title Insurance Might Include;
- Work orders and zoning issues
- Defects or encroachments due to an out of date survey
- Outstanding property taxes and outstanding water bills
Title insurance coverage remains valid as long as you retain legal ownership of the property. Title insurance covers losses up to what is listed in the policy for coverages. Generally it is recommended that title insurance is obtained for the total value of the property.
What Are The Different Types of Title Insurance Policies?
Title insurance has two different types of policies; an owner policy and a lender policy.
The owner policy is taken to protect the owner from any title related issues that arise included in the policy for the maximum coverage specified in the policy.
As there may commonly be a mortgage on the property, lender’s policy safeguards the lenders interests in circumstances where the mortgage may become unenforceable. The lender’s coverage covers the mortgage amount on the property.
Contact Our Real Estate Lawyers
To learn more about title insurance and how we can help, Contact Minhas Lawyers today!
Minhas Lawyers LLP is a multi-practice law firm based in Mississauga. We advise and represent clients across various segments and practice areas.
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