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The Benefits of Buying Title Insurance

Apr 24, 2014

Title insurance is a type of insurance which protects a homeowner against challenges to the ownership of their home and problems relating to the title to their home. It provides protection against losses due to title defects even if they existed before you purchased your home. Title defects can include things like rights of way, encroachments, and unpaid liens.

Title insurance is superior to a solicitor’s opinion and will cover you – for as long as you own the property – against many things they cannot such as:

  • Existing liens against the property:
    • In some cases there may be unpaid utilities costs on your property from previous owners. Without title insurance, it could end up costing you a lot to clear the property’s debts and restore your utilities.
  • Fraud and forgery:
    • Fraud and forgery are not common but it can happen. With title insurance you will be able to leave the responsibility for correcting the problem in the hands of experts without having to worry about mounting legal costs.
  • Encroachments onto your property:
    • During the process of a new survey, it is not uncommon to discover encroachments onto your land from neighboring properties. Title insurance protects you from loss in these cases and helps to settle any disputes.
  • Easements:
    • In some cases members of the general public may require access to or across your land for some specific purpose such as driveways and public utilities.
  • Zoning non-compliance:
    • This refers to instances in which property use does not conform to local municipal by-laws.
  • Outside Interests:
    • Sometimes previous owners can fail to be properly discharged from a title during the purchasing process. In these cases it is good to have title insurance in order to prevent them from retaining interest in your property.

Title insurance is often bought at the same time as buying a property, or during the refinancing process, but it can be bought at any time. You will only have to pay one premium at the time of purchasing and it will cover you for the entire time that you own that property. It is a good idea to consider title insurance whenever you purchase a new home or property in order to protect yourself from a lot of hassle and expenses later on. Consult with a real estate law expert in order to assess your situation and determine whether or not it is worth the investment for your next home.