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How did title insurance come about?

Unfortunately, no lawyer can completely assure a purchaser that there is absolutely no chance of an error in the government records, that there are no undisclosed claims, or that what appears to be the signature of the prior owner or consenting spouse is a true signature, there having been no prior fraud or forgery on title. Title Insurance can satisfy such "gaps" in a lawyer's opinion to cover not only frauds or forgeries prior to closing but also after closing.

Typical non-insured transaction: Traditionally, Ontario purchasers have relied solely on their lawyer's "legal opinion" that they have "good and marketable title" in order to confirm a clean title. Typical insured transaction: Title Insurance does not replace the role of the lawyer. It simply provides an added level of protection for the purchaser(s). Ontario lawyers still must search title and certify the status of title before a Title Insurance policy can be issued. Available in Ontario: Although Title Insurance has been standard in American real estate transactions, such insurance has gained popularity as part of the typical Ontario residential real estate purchase transaction. Bottom Line: Title Insurance is golden for the consumer as it can be included in a purchaser's total legal costs when one considers typical total legal fees and legal expenses, and since it is a form of no-fault certification of clean title with (typically) no deductible and with more extensive coverage's than the certification of title that has been traditionally provided by lawyers for real estate transactions.

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