Becoming a first time home buyer can sometimes feel like travelling in a foreign country. Despite the research you’ve been doing for weeks, if not months, there is always something you are unprepared for.
We’ve all been there, and that’s why we want to make sure you’re prepared and knowledgeable when it comes time to talk about things like Title Insurance. What is it? Do you need it? We have all the answers you need to know below!
What is Title Insurance?
While title insurance is not mandatory in Canada, it is a good idea to look into it as it will protect both you as the buyer, and your lender against losses related to the property title or ownership. Does this still sound like a foreign language? Here is a list of what exactly title insurance will protect you from:
- Unknown title defects
- Existing liens against the property’s title
- Encroachment issues
- Title fraud
- Errors in surveys and public records
- Title related issues that prevent you from selling, leasing, or obtaining a mortgage
Do You Need Title Insurance?
As each property purchase is different, this question is something your real estate agent can help you answer with help from your lawyer, and insurance broker. Once you get a better understanding of the protection this insurance can provide you with, you will be able to make a more informed decision on whether or not this is the right option for you.
If you want to learn more about Title Insurance, The Financial Services Commission of Ontario has put together a helpful brochure with answers to all your questions from deciding whether or not you need it, to processing a claim. As always, a local RE/MAX Agent is another great resource you can leverage to get answers to all your questions, and to get information specific to your location in Canada.