TITLE INSURANCE
Title insurance protects your ownership or title against any costs or losses you may incur due to a title defect, forgery, fraud, or a title problem that becomes known after you become the owner. The title insurance premium is only payable once and there is no insurance deductible if you need to make a claim. Once you have title insurance it is valid for as long as you own your property. Title insurance is available to purchasers, existing homeowners and mortgagees.
The following are some examples of what your title insurance will cover
1. Title fraud - In the event your home is mortgaged or sold due to identity theft or fraud, title insurance will provide the funds necessary to discharge the mortgage or compensate you for the loss of the property.
2. If you do not obtain an up-to-date survey from the Vendor and after closing it is revealed that a structure on your property encroaches on your neighbour's property, such as a fence or garage, title insurance will pay the cost of moving the fence or garage. Also, if neighbour's structures encroach onto your property, title insurance will pay the cost of moving the structure.
3. On closing, your solicitor obtained confirmation that all realty taxes or utilities have been paid in full. After closing, you obtain notice from the tax department or utilities office that in fact the Vendor owes monies due to a NSF payment, etc. Your title insurance will cover the outstanding amount and assume the responsibility of collecting the arrears from the Vendor.
4. Right of Way.
5. Old mortgage which was never discharged.
The title insurance company will bear the cost of hiring a lawyer to resolve the title problem and compensate any party involved.
