What Is Title Insurance?
Title insurance protects homeowners and lenders against financial loss related to defects in a property’s title.
Before you purchased your home, it likely changed ownership several times. The land itself may have an even longer history. At any point in that chain, an issue could arise.
Examples include:
• Forged signatures in prior transfers
• Unpaid property taxes or liens
• Title fraud
• Survey errors
• Unknown easements or rights-of-way
• Work orders or zoning non-compliance
Title insurance covers legal fees and potential financial loss if a covered issue arises.
How Does Title Insurance Work?
Before closing, your lawyer conducts a title search through public records to confirm ownership and identify registered claims.
However, not all problems are discoverable before closing.
If a title issue arises after you purchase the property, title insurance may:
• Cover legal costs
• Cover financial loss
• Protect marketability when you sell
Is Title Insurance Required?
If you are obtaining a mortgage, your lender will require title insurance to protect the amount of the loan.
This policy protects the lender, not the homeowner.
If you want personal protection, you must obtain an owner’s title insurance policy.
The premium is a one-time payment made at closing.
Who Is Protected?
Title insurance policies may cover:
• The homeowner (owner’s policy)
• The lender (lender’s policy)
• Or both
Owner coverage lasts as long as you own the property.
Lender coverage remains in effect as long as the mortgage is registered on title.
What Is Not Covered?
Coverage generally applies only to risks that existed at the date of purchase.
Certain exclusions may apply, including:
• Environmental contamination
• Indigenous land claims
• Issues created after closing
Always review your policy with your real estate lawyer to understand coverage details.
Protection and Peace of Mind
Title insurance helps ensure your closing proceeds smoothly and provides protection if an issue later arises.
It offers reassurance that your ownership rights are legally protected.
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