You are here: 

Title Insurance in Ontario - Definition and do you need it?

Definition: Title Insurance - An insurance policy issued by a company that assumes risk. In this case, the risk is that once title has been transferred to a new owner through a closing process, evidence comes to light that challenges the new owner's right to clear title.

Title Insurance can be residential or commercial. Residential refers to properties occupied by the owner _ usually single family homes but also including multiple dwelling units. Commercial refers to properties owned as investments and can include raw land, factories, retail stores, mixed use, apartment buildings, office buildings, warehouses or many other types of property. Owning a home is one of the most important parts your life, but having the deed to a piece of land does not necessarily mean the property is yours free and clear. Other people may have certain prior rights or claims that your deed will not erase. Such rights can go back all the way to the earliest owners of your new property. In order to protect your investment, you may consider purchasing Title Insurance. There are two types of Title Insurance policies that may be purchased at the time a property changes from one owner to another: an owner's policy and a lender's policy. Both the owner's policy and the lender's policy protect the named insured against an unknown defect in the title of property. A defect may mean you could incur additional costs in the future or even lose legal title to the property if the defect is not resolved before you take possession. If you have a Title Insurance policy, the insurance company will defend your title in court and pay any settlement amount you owe to clear the title, as long as it is a covered item.

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