Title Insurance is an insurance policy that protects property owners (commercial and residential) against unforeseen loss of property title’s or ownership.
If you own a house or a condo, a property title is your legal proof, which has to be protected. Although, Title Insurance is elective in Ontario province, many lawyers and estate specialist strongly encourage to purchase one. Indeed, it has many advantages when it comes to dealing with zoning or ownership issues.
5 Reasons to Obtain Title Insurance
Coverage of Title Insurance may vary depending on the type of policy purchased. Here are the most common pro arguments:
- Clear ownership of your property. Title Insurance covers you for such unpleasant things as fraud, errors in surveys and/or public records, as well as encroachment issues and existing liens
- Correction issues. If it turns out that your property was built without valid permits or improper code regulations, your Title Insurance will cover expenses of occurred issues corrections.
- Lawyer’s mistakes. Even lawyers sometimes make mistakes. Title Insurance will reimburse expenses connected to redeeming an error.
- Zoning violations. If you came across zoning bylaw violations, which were caused, for instance, by renovation processes – Title Insurance will cover you.
- Unpaid debts. Secure yourself from liens caused by unpaid debts, mortgages, condominium fees, and others.
In other words, if you want to protect your property and eliminate any complications that could affect selling, financing or leasing you property, Title Insurance is meant for you.
Types of Title Insurance Policies
Besides the different type of coverage that can be customized according to your needs, there are two types of Title Insurance: Owner’s Policy and Lender’s Policy.
The Owner’s Policies is purchased by the residential property owners. It protects an owner from title loss and its maximum coverage will be equal to property value.
The Lender’s Policy is purchased by a lender (bank or mortgage brokers) to secure coverage in amount of mortgage in case of payments inability.
Most importantly, Title Insurance is purchased for as long as you possess the property. It is a one-time payment aside from the fact if your property increases beyond the policy limit.