The word “title” is a legal term that means you have legal ownership of property. You obtain title to property when the owner signs the deed (transfer document) over to you. Title is then registered in the government’s land registration system.
Title insurance is an insurance policy that protects residential or commercial property owners and their lenders against losses related to the property’s title or ownership.
Title insurance has become a must have in Ontario when a mortgage is registered on the property, the lender has since made title insurance a requirement. Your lawyer,will explain the key benefits on closing.It is important to keep in mind that title insurance does not replace legal advice when purchasing property.
For a one-time fee, called a premium, a title insurance policy may provide protection from such losses as:
Errors in surveys and public records; and Other title-related issues that can affect your ability to sell, mortgage, or lease your property in the future.
Your title insurance policy will protect you as long as you own yourproperty, and will cover losses up to the maximum coverage set out in the policy. It may also cover most legal expenses related to restoring your property’s title.
Vincent La Fiura
Toronto Real Estate, Condos, Lofts, Townhouses, MLS Broker
RE/MAX West Realty Inc.
Brokerage, Independently Owned and Operated
1678 Bloor Street West, 4th Floor
Toronto, Ontario. M6P 1A9.