Purchasing a home is an exciting venture and after making the choice to do so, you want the peace of mind knowing that your investment is protected.
Title Insurance is an insurance policy issued by an insurance company which provides broad coverage against many risks when buying a home. For example, title insurance can provide coverage for the following title issues for residential properties:
- outstanding work orders;
- existing liens against the title;
- violations of municipal zoning by-laws;
- encroachments onto an adjoining property (other than fences and boundary walls);
- realty tax arrears;
- outstanding municipal utility charges, provided such charges form a lien on title;
- existing work orders; and,
- fraud, forgery and false impersonation to the extent they affect the validity of title.
The premium is only paid once and is included in our legal fees and disbursements. Title insurance has no deductible so the premium is truly a one-time fee. Coverage is valid for the entire time the homeowner holds title to the home.
At our law office, subject to credit approval, title insurance is obtained on every purchase or refinance transaction.
Title Insurance is still an option. However, when financing a purchase or when refinancing, title insurance is often a bank requirement.
The three primary reasons why our office has chosen to title insure all of our transactions are as follows:
1. Savings on disbursements: The title insurance premium often pays for itself when compared to the cost of an up-to-date survey/Building Code Services Report on Compliance, Tax Certificate and standard off-title searches. We estimate that savings on disbursements are anywhere from $350.00 to $600.00. A Building Code Services Report on Compliance alone is about $210 and this only provides information about zoning, building permits and outstanding work orders.
2. Time: Obtaining up-to-date surveys, Compliance Reports, Tax Certificates can take several weeks. In fact, a compliance report alone from the City can take anywhere from 4 – 6 weeks to receive. Most transactions have “quick closings” and short timelines that do not allow for enough time to order, receive and review the requisite documentation. Title Insurance allows us to close transaction in a timely fashion without the undue stress of extending the closing dates when search results are not received in time.
3. More Protection and Coverage: Title Insurance offers broader coverage and protection than a lawyer’s opinion alone.
Currently in Ontario, you have choices of many title insurance companies. Our office routinely completes transactions using the following three and will choose the best company for you. Our offices tend to use Stewart Title Insurance by default. Please take the opportunity to browse through their websites at your convenience as to see what is and what is not covered. Should you have any questions in regards to coverage, please call Stewart Title at 1-866-969-9101 directly.