If you own a home, you are probably familiar with Title Insurance. Well, I read something very interesting the other day that I wanted to share with you. It stated that there are 2 types of Title Insurance. Basically a general coverage that covers the purchaser and the lender in case of trouble down the road but also another type of coverage that only covers the lender.
What is the description of Title Insurance? “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.” For a onetime fee, called a premium, a title insurance policy may provide protection from such losses as:
- Unknown title defects (title issues that prevent you from having clear ownership of the property)
- Existing liens against the property’s title (e.g. the previous owner had unpaid debts from utilities, mortgages, property taxes or condominium charges secured against the property)
- Encroachment issues (e.g. a structure on your property needs to be removed because it is on your neighbour’s property)
- Title fraud (someone tries to register a fraudulent debt against your property)
- Errors in surveys and public records
- Previously undiscovered liens and issues around legal access to the property
So, why is it important that you be covered? Let’s say you purchase a new home and it states you have a backyard of 35′ but it turns out you only have 15′, you would want to be covered by Title Insurance. As this is a one time fee for as long as you own your home, this is incredible value for your money.
To protect yourself, it may be worth checking your Title Insurance policy to ensure you have full coverage!
Colleen Saunders is a 20 year veteran in the mortgage industry, serving Oakville, Mississauga, Burlington and Toronto and offering all mortgage related services such as 2nd mortgages, private mortgages and more.
To contact Colleen, please fill out the form on www.mortgagesbycolleen.ca or call 416-459-2406