- 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 survey.

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.

Send E-mail to David Fysh at david@davidfysh.com

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