- What is Title Insurance, and do I need it?
- In its simplest form, title insurance protects the lender and homeowner against a number of risks related to the property’s title or ownership. What does Title Insurance cover? From the point of view of most lenders, the main coverage is fraud, which can occur in a variety of ways. With identity theft on the rise, it is not difficult for a fraudster to obtain legitimate identification claiming to be the true owner. The fraudster then deals with realtors and lawyers as if they were the owner, and proceeds to sell the property. Alternatively, the fraudster may work with a lender or mortgage broker, again with identification, to place a new mortgage on the property. In either situation, the true owner is unaware of the fraud and the fraudster absconds with the sale or mortgage funds. Other typical examples include spousal impersonation and lawyer fraud. In most cases the Assurance Fund of the Land Title Office may reimburse the true owner, but this may take several months and thousands of dollars in legal fees. Title Insurance is usually quicker and less expensive. In addition to protecting against title fraud, title insurance can cover: 1. violations of municipal by-laws; 2. encroachments onto an adjoining property; 3. property tax arrears; 4. existing work orders; 5. lack of legal access to the property; 6. unpaid strata assessments; 7. zoning and setback non compliance; 8. forced removal by a governmental authority of a structure built without a required building permit; 9. legal status of any septic system; 10. gap coverage. How much does Title Insurance Cost? For properties with a purchase price under $1,000,000.00, the cost of title insurance is generally $225.00, with $175.00 to the Lender Policy, and $50.00 to the Owner Policy. For every additional $1,000.00 over a purchase price of $1,000,000 the price increases by $0.90. Unlike life or house insurance, purchasing title insurance is a one time cost, with no annual premium. How do I order Title Insurance? The easiest way to order title insurance is to ask your lawyer to order it as part of buying or refinancing the property. There is no extra fee to order the policy. How do I get the deposit to my Realtor? The deposit on your offer will typically be collected upon final subject removal, once you have satisfied the due diligence agreed upon within the offer. You will need provide my office with the deposit via certified funds, most often a bank draft. Though wire transfers are an option. I can pick that up from you our you can bring it into our office.
Todd Conner Real Estate
