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What does a title insurance policy typically cover you for?

Typical residential policy coverage: For a one-time premium (included in our quotation for fees and legal expenses), the policy protects the purchaser(s) and mortgage lender against losses suffered from matters set out below as well as other matters more specifically outlined in the policy:

* defects that would have been revealed by an up-to-date survey * survey errors or illegibility of survey * encroachments (before or after closing) * contravention of municipal zoning by-laws * un-marketability of title * defects in the title * invalidity or un-enforceability of the mortgage on title * liens * easements (other than usual easements for utilities, etc.) * contravention of subdivision, development and other agreements * priority of certain construction liens * priority of unregistered easements and rights of way * fraud or forgery (prior to and after closing) * solicitor error, omission or fraud * unpaid property taxes or local improvement charges by a prior owner In addition to policy coverage, the insured also receives: * indemnity for actual loss or damage for the amount of the policy (being the price paid for the property) and automatically increasing coverage (with inflation and rising property value)overtime to a coverage which can be double the price originally paid for the property. * payment of legal fees and costs to address title issues * a "no-fault" method to resolve title problems The new Platinum Title Insurance Policy replaces the Fold Title Insurance Policy for policies issued after January 30, 2006 with expanded coverage. Title Insurance will not typically cover pre-existing matters known to a buyer; fence issues; building inadequacies (which should be checked prior to closing by a home inspector during a home inspection condition) unless such inadequacies relate to a lack of building permit or city by-law compliance.

This series of articles is brought to you by A. Mark Argentino and other real estate related resources, including Canadian Real Estate Association CREA and the Ontario Real Estate Association OREA. Back to list of Real Estate Helpful Articles

Whether you are interested in a Power of Sale Property, a Foreclosure Sale or a regular property purchase, I can assist you with all of the complexities when you purchase or sell your next property.  Please don't hesitate to email me If you have any questions or require further information, please send me an email. Thank you, Mark Argentino Read about Power of Sale, Bank Sales and Foreclosure Properties FAQ's Read a very detailed section about Power of Sale and Foreclosure or go back to list of Real Estate Helpful Articles