- Title Insurance -
Title Insurance is a concept which originated in the United
States and has been available in Ontario since the mid 1990's.
Title insurance policies can be used to insure your purchase in a
situation where there is an inadequate survey or no survey at
all, and also provides coverage for previous owner property tax
arrears and some zoning and municipal work order issues.
Title insurance is a very cost effective method of helping to
manage risks relating to a property purchase and I recommend the
use of title insurance on all residential purchases.
Title insurance is accepted by all mortgage lenders and in
some cases, is demanded by mortgage lenders. Some mortgage
lenders will insist that a certain title insurance company must
be used for your transaction and will not allow you freedom of
choice on this issue. You may want to inquire of your lender or
mortgage broker if you will be allowed by the lender to choose
your own title insurer in consultation with your lawyer.
In exchange for a premium, the title insurance company will
provide insurance coverage for certain risks which might arise
from legal defects relating to a property. The types of
coverage available vary from one insurance company to another and
can vary depending on the specifics of the property. Most
mortgage institutions now accept Title Insurance in lieu of a
Obtaining Title Insurance will mean that some searches
normally done by a lawyer are not necessary. This will save
some money in disbursements, however the ultimate savings depends
on the individual property.
After reviewing the situation, your lawyer may determine that
Title Insurance is a good option for you. If this is the
case, he or she will review the details with you and will arrange
for a policy of Title Insurance if you agree that this is the
best approach to take.
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