What is Title?
If a person holds title to a property, it means they have its legal ownership. Title refers to the legal ownership of any property. Any person obtains a title to a property once they receive the transfer document or deed from the property’s owner. Once the title is received, it needs to be registered with the land registration department of the government.
What is Title Insurance?
Title insurance safeguards residential property owners and their mortgage lenders from any losses arising from the property’s ownership or title.
Is Title Insurance mandatory?
In Ontario, Title insurance is not a mandatory requirement.
It is advisable to discuss the details to purchase title insurance with your real estate lawyer, and the title insurance company. Doing this will help you gain clarity on the coverage of title insurance and its consequent benefits for your situation.
When you have a title insurance policy, most off-title searches are not required. The cost and effort of doing such off-title searches is thus removed from the purchase process.
Do keep in mind that title insurance offers you protection against any losses arising from the legal ownership and related factors. Possessing title insurance does not take away the need for title searches and title opinion from your real estate lawyer.