Rise in popularity in Ontario
Title insurance has always been a standard procedure in the American real estate industry, and it has recently gained traction in Ontario as well. Before, buyers would rely on the lawyers’ “marketable title” as a benchmark for clean and well-processed property titles. However, it is practically impossible for any lawyer to guarantee an error-free title transfer for a property purchase. There are a number of scenarios that can crop up with the title transfer following the completion of the purchase. Title insurance protects buyers against these types of scenarios.
Does title insurance render lawyers unnecessary?
Title insurance does not hinder the importance of lawyers in a property title transfer. On the contrary, it ensures that the work of the lawyer in the certification of the title does not come under any risk. Lawyers still need to conduct all the research and ensure that the title insurance is issued only after proper certification of the title transfer. The insurance is basically a certification guaranteeing no fault and offers better coverage than the title certification traditionally offered by lawyers. The cost of the insurance is also included within the total legal expenses of the buyer.
Now, there are many companies that offer such insurance policies. However, STEPHEN H. SHUB, LL.B. (the first title insurance company of Canada) has recommended their new PLATINUM TITLE INSURANCE POLICY to their clients. This policy offers extensive operations at their head office in Oakville, Ontario. They offer a great deal of confidence to buyers as they are among the largest title insurance companies worldwide. They also have great infrastructure to efficiently deal with the procedures of issuing new policies and processing claims.
Title insurance have become standard for every property purchase. The law of Ontario mandates that title insurance be purchased for every property purchase to ensure title protection for the buyers. The role of the lawyers is to guide the buyers through the property purchase and ensure the smooth proceedings of all transactions. The buyers will be able to obtain the title insurance policy right after the property purchase has been finalized.
What does title insurance cover?
Title insurance provides buyers with the following protection for a premium paid once. The protection includes any losses suffered by buyers for any title disputes.
- Any defect that is revealed by a survey
- Problems caused by errors in surveys or the illegibility of the conducted survey
- Encroachments
- Municipal zoning contraventions according to the law
- Inability to market the title
- Faults in the title
- Invalidity or unforeseeable developments of the mortgages on the title
- Subdivision contraventions or other similar developments and agreements
- Construction liens and their priorities
- Unregistered easements and their priorities
- Forgeries or fraudulent activities
- Errors caused by solicitors
- Unpaid taxes on the property or charges of local improvement not paid by the previous owner
Purchasing a title insurance policy can be of great assistance to a property buyer against such scenarios, and ensure that they can be covered in all aspects of the property purchase.