Mike Kelly – Realtor at Real Broker Ontario Ltd.
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Understanding Title Insurance - Essential Guide For Homeowners
What is Title Insurance?
Title insurance protects property owners and lenders from losses related to property title issues. It is not mandatory in Ontario but offers significant benefits by covering unknown title defects, existing liens, encroachment issues, survey errors, and title fraud.
Why Consider Title Insurance?
While not required, title insurance can save time and money during the closing process and provides comprehensive protection. Discuss with your lawyer or insurance agent to determine the necessity based on your situation.
Coverage and Costs
Title insurance covers various potential issues for a one-time premium based on property value. Coverage lasts as long as you own the property and extends to heirs and spouses.
Making a Claim
To file a claim, verify your policy covers the issue, submit the claim promptly in writing, and keep detailed records. Understanding exclusions, such as known title defects and environmental hazards, is crucial.
Types and Benefits
Residential title insurance protects houses, condos, and other residential properties, offering comprehensive and gap coverage, legal expense coverage, and possibly eliminating the need for new surveys.
Title Fraud Protection
Title fraud involves fraudsters transferring your property’s title without your knowledge. Title insurance helps protect against such fraud, and victims can seek compensation through the Land Titles Assurance Fund.
For more detailed information, visit the FSRA website.