What is title insurance?
According to the Financial Services Commission of Ontario FSCO “Title insurance is an insurance policy that protects residential or commercial property owners and their lenders against losses related to the property’s title or ownership.”
What is “Title”?
In their information brochure FSCO continues with stating that the “word “title” is a legal term that means you have
legal ownership of property. You obtain title to property when the owner signs the deed (transfer document) over to you. Title is then registered in the government’s land registration system.”
The Financial Services Regulatory Authority of Ontario has helpful information about title insurance, understanding what it is, and the importance of having it for each of your properties.
Why you need title insurance
There are many advantages to having it. We recommend that you consult with a Lawyer to learn about the legal benefits and protection of having it.
This policy protects you and your property. Foe example, title defects that were not caught in due diligence before the closing date. Encroachment issues. Mistakes made in the property survey or public records of your property. Title fraud is another big concern that title insurance can protect the real estate owner with.
Contact us with any questions you have. We are here to help in any way we can.
By and large when applying for a mortgage lenders would like to see you have this type of insurance. There are several insurance companies that offer it. Your Lawyer would also be able to help. Knowledge and preparation are key. Consult with your trusted advisors on creating a plan of action. On the mortgage front Trusterra Mortgage is ready to be your trusted mortgage advisor.