Title Insurance

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Title insurance is a type of insurance policy that covers the title condition and ownership of the real estate to provide security against any title related issues. The lawyer of the purchaser obtains the insurance on behalf of his client as soon as the deal of purchase is finalized. The Law Society of Ontario has made it obligatory that all lawyers must inform their clients about the advantages of title insurance.

Typical Non-Insured Transaction

Traditionally, purchasers in Ontario rely on the sole discretion of their lawyer to obtain a clean title. However, no lawyer can truly guarantee that the title is definitely clear. There may be errors in the official records, there may be some undisclosed claims or in the worst case scenario, the prior owner’s signature may be forged. These are rare but possible scenarios. So, title insurance can include such conditions not only before the purchase but also after the purchase. Therefore, the lawyers’ opinion matters more as he assists with obtaining a clear title report and title insurance.

Typical Insured Transaction

Title insurance cannot replace the lawyer’s role. However, there is an added layer of security provided to the purchaser. The lawyers in Ontario still have to search title details and certify the present situation of the title before issuing a title insurance policy to his client.

Advantage of Title Insurance

Title insurance is a win-win situation for the purchaser. It is included in the total legal costs incurred by the purchaser. Thus it is a part of the total legal fees and disbursements charged by a lawyer. Also, it is a type of ‘NO-FAULT CERTIFICATION’ that comes with absolutely ‘NO DEDUCTIBLE’ as compared to the traditional title certification issued by lawyers that includes extensive coverage.
Nanda & Associate Lawyers are proud to present you the ‘PLATINUM TITLE INSURANCE POLICY’, a first title policy that provides comprehensive care to the purchaser. Our partner companies ensure that all your risks are covered and you enjoy the true ownership experience. We also deal in all other title related issues with efficient claim processing strategies and affordable fee.

Typical Residential Policy Coverage

The purchaser has to pay a one-time single premium (including legal fees and expenses), to be covered for any of the title related issues mentioned below:

  • Property defects as per an up-to-date survey, if conducted on time.
  • Errors of survey
  • Encroachments on the property (prior and after closing)
  • Breaching any zoning by-laws set under municipal laws.
  • No marking of title
  • Defects in the conditions of the title
  • Mortgage invalidity on title
  • Non-payment of local improvement charges
  • Liens
  • Illegal easements besides the general utilities easements
  • Infringement of subdivision or development agreements
  • Priority to some construction liens
  • Constructing unregistered easements and rights-of-way
  • Forgery or fraud in the previous title
  • Solicitor error or omissions
  • Unpaid tax on the property

In addition to the above mentioned covers, the purchaser also benefits from:

  • Indemnity, relative to the amount of the policy (depending on the price of the property) to be paid to the purchaser.
  • Inflation adjustments in the price of the property and policy value which can overtime increase to as much as double the original price.
  • To manage title issues, legal fees and costs are also paid accordingly.
  • To resolve title issues using a “no-fault” method.

Nanda & Associate Lawyers: A Step in the right Direction

Standardized Transactions

Nanda Law firm renowned for providing real estate legal assistance to a vast clientele across Toronto and the GTA. With an in-depth knowledge and experience our lawyers are available to assist you with all your real estate needs during the entire process. If you do not wish to procure title insurance please inform us as soon as possible but at least fourteen days before the purchase/closing. Also, title insurance policy will not cover any known matters that have been conveyed to the buyer including fence issues, or general building incompetency. These are believed to have been checked by a home inspector prior to the purchase. However, if problem relates to the building permits or zoning by-laws compliance, these can be covered under the policy.

As a purchaser you don’t want to find out that the home you purchased had dubious title registration or property taxes were not paid. At Nanda & Associate Lawyers you can rest assured that our title search is thorough and you can have the peace of mind.

Typical Cost of Title Insurance Policy

Title insurance policies are not expensive. For example, for real estate transactions under the mark of $500,000, a title insurance policy can cost you $150 – $450. The exact cost depends on the residential property type and the mortgage plan. Also, the municipalities are constantly raising their fees for subdivision, zoning and other taxes leading to rise in the cost of title insurance policy.

Title Insurance policy for Existing Homeowners

Now, title insurance policy is also offered to existing home owners. This policy provides adequate coverage against any title related issue including purchase fraud. The coverage provided to the homeowner is equal to the value of the property at the time of buying the title insurance. This amount can vary as per the neighborhood, by-laws and also due to rise in the value of the property.

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