In Ontario, there has been a string of recent incidents that involve title fraud. Whether that is a news story of someone’s home being sold while they are away on a trip, or someone discovering years later that a mortgage was put on their title without their knowledge, title fraud can come in many forms and is expensive and time-consuming to deal with.
Title insurance started in Canada in the 1990s, and has now become very mainstream. A homeowner title insurance policy is an option offered to clients when they are purchasing a property. Most lenders require title insurance to be placed on new properties, in which case, a lot of new buyers are insured without having to even consider it. However, if you are a purchasing a home with no funding, or bought your property at a time when title insurance was not offered, title insurance can make the difference between spending thousands of dollars in costs to recover your property or reverse the damage that title fraud can cause.
What does Title Insurance cover?
Unlike other insurance policies, where you pay a monthly premium, title insurance is a one-time cost. The policy cost depends on certain factors, including the property value/purchase price, but is usually a low cost considering what they insure.
Title insurance covers the owners of the home the entire time they own the property. Whether you live in your property for 2 years, 5 years or 35 years, the premium you paid at the time you title insured is the only cost you ever must pay for the title insurance protection. Title insurance covers loss that can arise from most type of title risks such as unpaid taxes, easements, encroachments, unpaid work by previous owner, by-law infringements or zoning violations, and most importantly, title fraud. For example, after you buy your property, if you discover that the person you bought your property from has unpaid tax arrears and they refuse to pay, you could sue them and pay for legal costs for doing so, or you can rely on title insurance to cover those arrears.
How can I obtain Title Insurance?
If you have owned your property for years and are thinking it is too late now, it is never too late to title insure your home! Most title insurance companies offer existing homeowner policies, where you can now title insure your home, and offer market value endorsements, so you can ensure that your home and title are safe, no matter the value of the home at the time you require title insurance.
Our firm would be happy to assist you in the process of title insuring your home or for any other real estate needs you may have. Contact our real estate department at realestate@malickisanchezlaw.com for any queries you may have.
