Title insurance is a type of insurance policy that provides protection to homeowners and lenders against financial losses related to the ownership of a property. In Ontario, title insurance is a common type of insurance that homeowners purchase when buying a new property with the aid of their Real Estate Lawyer Toronto upon closing or existing home owner policy. Title Insurance is currently provided by Four Companies
The purpose of title insurance is to protect homeowners and lenders from any potential legal disputes or issues that may arise related to the property’s ownership. It provides coverage against any defects, liens, or encumbrances that may exist on the property’s title.
Title insurance policies in Ontario typically cover a range of risks, including:
1. Fraudulent title claims: If someone claims to have a valid interest in the property and attempts to take legal ownership, title insurance will cover any costs associated with defending against such claims.
2. Unknown title defects: Title insurance will protect against any unknown issues that may arise after the purchase of a property, such as outstanding taxes, unpaid debts, or errors in the public records.
3. Survey and boundary issues: Title insurance will cover any legal disputes related to the property’s boundaries or any encroachments on neighboring properties.
4. Errors or omissions in public records: If there are any errors or omissions in the public records related to the property, title insurance will cover any resulting costs or damages.
When purchasing title insurance in Ontario, homeowners can choose between two types of policies: owner’s policies and lender’s policies. An owner’s policy protects the homeowner’s investment in the property, while a lender’s policy protects the lender’s financial interest in the property when the client get a mortgage on the property.
The cost of title insurance in Ontario varies depending on the value of the property and the type of policy purchased. Generally, the cost of title insurance is a one-time fee paid at the time of the property’s purchase and last as long as you own the property.
Title insurance is not mandatory in Ontario, but many homeowners choose to purchase it as a way to protect their investment in the property. It can provide peace of mind and protection against unexpected financial losses related to the property’s ownership.
In conclusion, title insurance is an important consideration for anyone purchasing a property in Ontario. It provides protection against a range of risks related to the property’s ownership and can help homeowners and lenders avoid unexpected financial losses. If you are considering purchasing a property in Ontario, it is recommended that you speak with your real estate lawyer Toronto to determine if title insurance is right for you.