There are many reasons to buy Title Insurance. Most frequently discussed in the media is when a 3rd party places a mortgage or lien against a property with neither permission nor justification. There have been some big court cases on this matter in Ontario alone.
But that is only one way in which Title Insurance protects a property owner.
And notice I said Property Owner – not just Homeowner. There are title challenges in all kinds of real property.
Issues have arisen in the past where a party has purchased a home in good faith, to find out later that a renovation has been done without a permit, and legally they are required to make changes that comply, or even restore the property to its original conditon, at their expense. And with no way to recover their losses from the former owners.
Fraud and Forgery are only two areas in which property owners can be exposed. Also to be considered are matters such as By-Laws, Zoning, Surveys..the list goes on.
Generally speaking, Real Estate Lawyers today, and for the past decade or so, simply include Title Insurance Policies in closing documents. In fact, they have a duty to inform clients of the availability of such coverage, as well it’s import. But they don’t have a duty to place the coverage for you, so as in so many other parts of life – so Buyer Beware! Ask!
And if you currently own a property and don’t know if you have Title Insurance, again – ask! It can be purchased after the fact.
First Canadian Title is a highly regarded provider of Title Insurance. They provide an excellent summary of coverages here.
