Many home buyers & even current home owners ask me what the heck is TITLE INSURANCE ?
What does Title Insurance cover and why is it so important?
Title Insurance ensures and protects current buyers or current owners against losses caused by existing defects in the Title or ownership of a property.
Hidden Title issues or Title defects can be discovered after a buyer completes a purchase of a property.
These issues can even arise years after the purchase date.
Title Insurance providers compensate owners for financial losses you might incur as a result of existing Title defects.
Here are some examples of potential property TITLE “defects”:
1. Existing liens:
Previous owners might have had unpaid debts from utilities, mortgages, property taxes, condo maintenance fees, and things like that.
2. Encroachment issues:
These can be issues such as boundary (or property line) disputes with your neighbours.
3. Errors In Property Surveys:
Issues such as the lack of one’s right of access to and from the land or even issues such as the amount of land.
4. Building & Zoning Compliance:
An example might be if a previous owner of your home left open permits or deficiencies which must be corrected before the purchase date.
Another example is the present use of property which might not be permitted according to local zoning bylaws.
These are just some examples of how Title Insurance can protect you from legal issues and/or financial loss.
Be sure to check out my other post called: “Title Fraud-How Someone Can Steal Your Property & How To Protect Yourself”.
If you are thinking of buying or selling a home and want to talk more about how to do it safely and smoothly … I’m always happy to chat. Just get in touch with me by email or phone.