Introduction

When purchasing property in Ontario, deciding whether to get title insurance is an important consideration. Title insurance isn’t mandatory, but it can offer valuable protection, and the alternatives will be much more expensive up front. In this blog post, we’ll explore what title insurance covers, its benefits, and how to decide if it’s right for you.

Overview of Title Insurance

Title insurance is designed to protect property buyers and mortgage lenders against losses related to the property’s title. It can cover issues that were not discovered during the initial title search, such as fraud, forgery, encroachments, or issues related to the property’s legal ownership.

Detailed Explanation/Insights

While title insurance is not a legal requirement in Ontario, it provides an important layer of security. Common risks covered by title insurance include:

• Unknown title defects (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 needs to be removed because it is on your neighbor’s property).
• Title fraud.
• Errors in public records.
• Unpaid taxes or utilities that may result in a lien.

Legal Perspectives and Tips

It’s crucial to discuss with your lawyer or a title insurance company the protections that title insurance can offer, tailored to your specific needs. Here are some points to consider:

• Consult Your Lawyer: The Weclose legal team can provide detailed advice on the risks associated with your property and whether title insurance would be beneficial.
• Compare Policies: Different policies offer varying levels of protection. Be sure to compare what is covered and what is excluded.
• Understand the Costs: Title insurance is a one-time fee paid at the closing of the transaction. Weigh the cost against potential risks to your property rights.

Conclusion

Title insurance is a decision that should be based on your specific circumstances and the property in question. While not mandatory, the protection it offers can save you from significant up front costs and future legal and financial headaches. Discuss your needs with Weclose legal team to make an informed decision. If you have any questions or need further guidance on obtaining title insurance, contact Weclose today for a consultation. We’re here to help you navigate the complexities of property transactions with confidence.