What is title insurance?

The cost of title insurance will vary based on the mortgage you are taking

This week I am going to mix things up a bit and share some information about title insurance which I received from Chris Stephan.

Chris is a lawyer with JD Law. I thought it was wonderful information and with his permission I am sharing.

What is title insurance?

Title insurance protects your ownership interest (i.e., title) of your property from losses incurred as a result of unknown title defects or other covered matters that exist at the time of your purchase, but are unknown to you at that time.

What does title insurance cover?

Title insurance provides coverage for losses arising from, but not limited to:

• someone else claiming an interest in your title.

• fraud, forgery and false impersonation affecting the validity of your title.

• existing liens against the title including realty tax arrears and municipal utility charge.

• violations of municipal zoning bylaws.

• many forms of encroachment onto the property or adjoining land.

• existing work orders.

• lack of legal access to the property.

• unmarketability of land due to adverse matters that an up-to-date survey/Real Property Report (RPR)/Building Location Certificate would have revealed.

What is not covered by title Insurance?

Please note the standard exclusions and exceptions from coverage contained in all title insurance policies. These include:

• title or other defects created, allowed or agreed to by you.

• title or other defects known to you prior to the policy date.

Other things not covered by title insurance include environmental matters, native land claims, matters that result in no loss to you and matters disclosed in home inspection or building inspection reports obtained by you

As a note from me, the cost of title insurance will vary based on the mortgage you are taking and starts around $309 plus GST.

If you own your home free and clear you may want to consider taking a title insurance policy as a safeguard against mortgage fraud. You are also able to pay additional funds for additional coverage for awful events such as identity theft.

As always seeking professional advice is always in your best interest. Have a great week!

Pam Pikkert is a mortgage broker with Mortgage Alliance – Regional Mortgage Group in Red Deer.

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