What is Title Insurance and Why Do I Need it?

Title Insurance is a product designed to protect homeowners and mortgage lenders with protection against losses resulting from title fraud, title issues, survey issues and title defects. Most mortgage lenders will require that you obtain title insurance at the time you purchase your property. If it is required, your lawyer will coordinate ordering the policy on your behalf during the document preparation process. Depending upon the Title Insurance Provider and whether the property you are purchasing is a free standing home or a strata property, the typical, one-time premium for title insurance ranges from $130 to $180. The law firm you choose to complete your conveyance for you can let you know exactly what the premium will be for your particular transaction.

What does Title Insurance protect me from?

Title Insurance provides protection for instances that happen in the future such as title fraud as well as for issues that may have occurred in the past such as improper survey boundaries or encroachments onto neighboring properties or rights of ways. Below are a few examples of what risks title insurance can protect you from: If a fraudulent mortgage is registered against your property using forged signatures, you as the homeowner would be required to prove you were victimized by fraud at your own expense. A title insurance policy can cover the legal expenses and other costs associated with proving a fraud occurred. If improvements such as the finishing of a basement or the addition of a deck to the house you purchased, were made prior to you becoming the owner and it is later discovered that the work was done without obtaining proper permits, you could be required to remove or correct any improvements at your own expense. A title insurance policy could protect you from incurring these costs. If you purchased a home that has a shed or addition that encroaches onto a neighboring lot, you could be liable to have the addition moved or pay for the legal work required to redefine the property boundaries. A title insurance policy could protect you from this type of loss. If you have any questions regarding title insurance you can contact Russell McDonough at Kearns and Company at 604-589-8022.