Questions about Title Insurance
February 6, 2019 | Posted by: Sherry Corbitt
Title insurance is something you will most likely read in your mortgage commitment as a requirement and have to purchase at the lawyer’s office. The average cost of title insurance in Ontario is around $250 and is purchased through your lawyer and paid as part of your closing costs.
But what is it? Why do you need it? Is it mandatory? Here is some information directly from the Financial Service Council of Ontario (link at the end of this blog).
Title insurance can help protect you and your home against fraudsters trying to scam you!
What is Title Insurance?
Title insurance protects property owners and their lenders from loses of property ownership.
Do I Need Title Insurance?
You do not legally need title insurance in Canada, yet it can protect you in your mortgage. To figure out wether or not you should get it, talk with your lawyer. They will offer you professional information that can help ensure the best for your mortgage. Once you have all the information that you need, you can decide based on your circumstances. Remember that title insurance does not replace legal advice when purchasing a property.
What Does Title Insurance Cover?
A title insurance policy may protect a homeowner from the following losses:
- Encroachment issues
- Title fraud
- Errors in public records and surveys
What is “Title Fraud”?
Title fraud is a form of real estate fraud which can trouble for a homeowner. This fraud is when an individual uses someone's personal information to transfer a home title to themselves. This results in them getting your mortage money.
Having title insurance can prevent such matters from occuring, ensuring that both the homeowner and their mortgage remains safe.
If you have any other questions or concerns about title insurance, please reach out to me!
Sherry Corbitt, Mortgage Broker
Sources
-Financial Services Commission of Ontario (2021). Understanding Title Insurance. Retrieved from https://www.fsco.gov.on.ca/en/insurance/brochures/Pages/understanding-title-insurance.aspx
