Thank you to FCT Insurance Company Ltd. for providing this information.
What is Title Insurance?
Title insurance protects you, the homeowner, against losses associated with title fraud, survey and title issues/defects,as well as challenges against your ownership (title to the property). Title insurance is unlike traditional insurance products — it does not just cover things that may happen in the future (e.g. title fraud), but also, title defects that have already occurred in the past, prior to purchasing your home.
What Does it Cost?
Premiums are one time, based on property value, and vary by province. The premium on the average home ranges from $100-$250.
Why Should I Have Title Insurance? What are the Benefits?
- Title insurance is now a frequent requirement of the banks when you are having a mortgage registered against real estate, whether for purchase or refinance.
- Municipal issues. If improvements were made to your house before you purchased (for example the basement had been finished, an addition built or a deck added) you could find out after closing that the required permits were not obtained. You could then be forced to remove or remedy the improvement by your local municipality. Title insurance will protect you against this type of loss.
- Encroachment issues. Sheds, laneways, even homes and garages are sometimes built on neighbouring properties and need to be moved. This could happen if a previous owner built without verifying where the lot lines were. Title insurance protects agains loss from encroachment issues.
- Fraud and forgery. Real estate fraud is one of the fastest growing crimes in North America. If someone forged your signature and registered a mortgage on your home without your knowledge, the onus is on you as the homeowner to prove you were victimized by fraud. It can be very costly, financially and emotionally to resolve this, but with title insurance, you will be covered for legal expenses and costs incurred while proving fraud had been committed.
- Construction/Mechanics/Builders Liens on title for services or materials supplied prior to closing (or before the policy date).
What are the Benefits if I am a Condominium Owner?
- Errors and omissions in the Status Certificate.
- A loss arising out of the failure of the condominium corporation to disclose facts that would lead to the levying of a special assessment or increase in monthly common expenses.
- Failure of the condominium complex as a whole to comply with municipal covenants and restrictions and/or building and zoning by‐laws.
- Failure of the condominium to be created properly under the applicable condominium legislation, or registration of the documents in creating the condominium.
- Violations of the restrictive covenants that affect the use of the land that are contained within the condominium documents.
How Do I Obtain Title Insurance?
- Title insurance can be obtained through your lawyer or notary public when you are purchasing a property and/or when you are securing mortgage financing. If you already own your home, you can still obtain title insurance by contacting FCT directly.