Using Title Insurance for Unexpected Events
Published on 29 August 2022, 07:22:56 AM
Sure buying a home is expensive, but cheating yourself out of title insurance is one costly mistake.
Title insurance is so cheap it’s surprising not everyone has it. You pay just a few hundred dollars for a one-time premium when you buy your home.
But not having title insurance in Ontario can cost you thousands.
Quick Reads
Is title insurance mandatory in Ontario?
Does title insurance cover both future and past events?
How do I get protection from future events?
Mandatory vs Definitely Worth Having: Title Insurance in Ontario
Title insurance is not mandatory in Ontario, but it’s well worth the cost. It’s not a replacement for legal advice, but it can save you grief if a legal conflict arises. Prevent a title insurance scam.
Sophie’s Illegal Suite
Take Sophie. The Canadian home buyer was ordered by city inspectors to remove an illegally built inlaw suite from a home she purchased. What happens if a previous owner failed to get building permits.
Sophie, who thought she was buying a home with extra accommodation, used her title insurance policy to change the space. Instead of adding a costly interior staircase the city required to approve the inlaw unit, she turned the space into a TV room. Read Sophie’s experience.
Total cost to Sophie: a modest, one-time fee for title insurance, and a bonus $5,775 cheque from her title insurer to reconfigure her basement space. Stop mortgage fraud with title insurance (Ontario).
Blindsided by a Special Levy
“Amelia and Bob Wilson” got a $3,508.07 surprise with their new condo.
The $3,508.07 special assessment approved by their condo corporation appeared in the corporation minutes six weeks after they moved in. The corporation’s own bylaws required notices of special assessments to be communicated three weeks after being approved.
The couple appealed to their title insurer, who paid the unexpected expense.
Title Insurance Is For Your Property’s Life
Title insurance covers both future and past events, for as long as you own a property. You don’t have to worry title insurance will lapse in future. The premium is paid once and lasts as long as title to a property is in your name.
Say you receive an unpaid contractor claim, after you buy a property. Title insurance covers that. It won’t cover open permits for construction under progress when you buy, but it may help you if the former owner bypassed local building regulations.
Neighbour insists your fence is over his property line? Title insurance can help with the cost of taking down the fence and rebuilding it on your own land. Title insurance for property line disputes.
You Want Protection From Future Events
Which insurance policy protects against future events for the owner?
That depends on what you mean by future events. Title insurance is not the same as mortgage life insurance, or critical illness and disability insurance that pay the mortgage if you die, are seriously ill, or disabled.
Title insurance is strictly tied to your property, such as clerical errors, anything that got left out of your title (omissions), or stopping mortgage or title fraudsters. Talk to a home or life insurer about other policies that protect homeowners from non-property related future events.
What your title insurance covers.
Why You Need a Real Estate Lawyer
Satisfied now that you need title insurance?
Transfer title safely to land or a home you buy in Ontario with Axess Law’s professional real estate lawyers. We arrange a property title transfer (Ontario only) that registers property in your name at a local land titles office. You can add a family member or spouse to title to property at the same time or, for a small legal fee, Axess Law can do a title transfer (Ontario) to update your property records later.
Let our licensed real estate lawyer go over your contract’s terms and conditions before or after you sign the agreement of purchase and sale. We look for clauses that affect your buyer’s right to cancel, and liaise with your bank, trust company, credit union, or private lender to finalize mortgage documents to finance your new land or home.
Discharging existing mortgages at the same time you take on new loan obligations when you buy and sell property on the same day?. Already own a home, and opening your mortgage to renovate? We witness your signature on legal documents your lender requires. Using a lawyer to refinance a mortgage.
Our secure, confidential video conferencing software lets you complete real estate and mortgage transactions completely online, from the comfort of your home or office. Ask us how to use any compatible home or office computer, tablet, laptop, or mobile device, from anywhere in Ontario.
Affordable Real Estate Lawyers, Anywhere You Are
Access lawyers for less in Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.
Hiring a real estate lawyer near me.
Make Legal Appointments Online or By Phone
Make appointments online with our easy web form, or call toll-free to 1-877-402-4277 (647-479-0118 in Greater Toronto Area). Our Ontario real estate lawyers meet with you day or evening, anywhere in Ontario, by online video call. Prefer to meet in person? Make in-person appointments at any of our conveniently located Greater Toronto Area or Ottawa law offices.
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