Understanding title insurance

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Between dealing with mortgage rates and home loans, it’s easy for other parts of the home buying process to fall through the cracks. After all, who has time to worry about things like title insurance when you’re trying to find the best deal on a home purchase? However, with more lenders now requiring title insurance as part of a mortgage loan, it’s vital that potential home buyers fully understand what title insurance is, how it can protect them and ways to save money in the process.

What is title insurance?
Title insurance is a form of coverage that protects against losses arising from ownership in a property. When you purchase a home, chances are that it’s gone through a number of changes in ownership. This also includes the land the home itself sits on. Since human error or unforeseen problems regarding the transfer of ownership may lead to legal troubles regarding a home’s title, this insurance means that public records have been thoroughly searchedto ensure a property’s title is in order. It also means that if any problems do arise, the owner or lender will be covered. Continue reading

Consumers may want to consider title insurance

As the housing market begins to thaw over the next few months, more and more buyers will be sitting down at closing tables across the country to sign their Canadian mortgages. But many buyers may be unfamiliar with one part of the process – title insurance.

The Title Insurance Industry Association of Canada says title insurance is a one-time payment that covers costs resulting from issues such as zoning issues, home improvements made without a permit or other legal issues.

The group says the Law Society of Upper Canada requires lawyers discuss options such as title insurance with their clients during a home purchase. Because of that, more than 95 percent of buyers in Ontario purchased title insurance.

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