There is always a lot of uncertainty when it comes to the property you’re buying. Title insurance is a worthwhile investment that will protect your assets down the road.
Matthias Duensing is an experienced residential and commercial real estate lawyer in Toronto with the expertise to set your affairs in order. It is crucial you have someone who can protect your interests when it comes to buying property.
Given that this is likely the single largest purchase you’ll make in your life, the last thing you need is a caveat that could prevent you from freely renting, leasing or mortgaging your property in the future.
We’ll go over what title insurance covers (and what it doesn’t), how it benefits you in the long run, and why Duensing Law is the right real estate law firm for the job.
What is Title Insurance?
Title insurance is an insurance policy created to protect residential or commercial property owners and lenders from losses related to property title or ownership.
“Title” in the legal sense refers to your legal ownership of property such as a house or office space. You obtain title to a property when the former owner has signed the deed and transferred the documents over to you. It is then recorded in the government’s land registration system.
Unlike a regular insurance policy that protects against future occurrences, title insurance is intended to protect against claims for past occurrences. The exemption to this rule is that title insurance can also protect you against future title fraud issues.
Title insurance can be acquired for both residential and commercial properties. Residential title insurance applies to properties like houses, condominiums, cottages, rental units, and vacant land among others. Commercial title insurance covers large buildings such as office spaces, industrial buildings, shopping centres, rental units, and warehouses.
Why Do I Need Title Insurance?
Although title insurance is not a requirement in Ontario, it is an important safety net to have when issues regarding property ownership arise. Keep in mind, however, that this type of insurance cannot replace qualified legal advice for property purchases.
Discuss the matter with your lawyer and insurance company to understand what type of protection title insurance can provide and if other options can provide similar coverage. Research all the facts and make an informed decision based on your specific situation and needs.
What Does Title Insurance Cover?
Title insurance covers a variety of factors. After paying a one-time fee (premium), title insurance can offer protection from losses such as unknown title defects/conflicts, liens against the property’s title, encroachment issues, title fraud, and errors in surveys and public records.
There are some things title insurance doesn’t cover. We recommend that you have a lawyer assist you in examining the policy. It generally does not offer protection against losses such as known title defects, environmental hazards, native land claims, and matters not listed in public records among others. It doesn’t cover future increases in common espenses or special assessments for condominiums.
Title insurance may also not apply to damages accrued by natural disasters, fires, theft, or general deterioration.
Although title insurane allows the closing of your purchase transaction without obtaining a survey, it does not replace a survey as title insurance policies typically do not cover problems that would only be discovered by a new survey or inspection of your property (e.g. the property is smaller than originally thought). Duensing Law always recommends obtaining a survey (except for condominiums).
How Do I Make a Claim on Title Insurance?
A reliable real estate lawyer is often your first point of contact if you want to make a claim for title insurance. Always double check your insurance policy because different insurance companies have different regulations on who is eligible and what can be covered.
Once you have done this, make your claim as soon as possible in writing by letting your insurance company know the details behind your property losses. Remember to add your contact information and any related documents pertaining to your losses.
Lastly, keep a copy of your claim for your records as you may need to refer to it as the company reviews your case.
Duensing Law is a competent real estate attorney in Toronto. Having the required legal acuity, Duensing can assist with filing your claim to ensure that no pertinent details have been neglected.
Turn to a Trusted Commercial Real Estate Attorney in Toronto
Don’t take a gamble with an investment of this magnitude. Duensing Law assists with:
- Title Insurance
- Preparation, review and/or negotiation of purchase and sale agreements
- Transfer of title/ownership
- Transfers by executors and trustees, and more
To schedule an appointment, call (416)-601-4769 or email us at firstname.lastname@example.org.