By: Maurice King

Title Insurance

Tags: Title Insurance

Title Insurance protects property owners and their mortgage lender against Title "surprises."  It's an important consideration. But before you purchase, compare policies to find out what's covered and be aware of possible exclusions, which may include:
- Known Title Defects (that were revealed before the property was purchased);
- Environmental Hazards (e.g. soil contamination);
- Problems that would only be discovered by a new survey or inspection of your property (e.g. the lot size is smaller than originally thought);
- Matters that are not listed in public records (e.g. unrecorded liens and encroachments); and
- Zoning bylaw violations from changes, renovations, or additions to the property.

When purchasing Title Insurance, make sure:
• The effective date of your policy is the same as the closing date of your property.
• Be sure that you understand what Title-related issues your policy will protect and, as mentioned in the examples above, what’s not protected. And if there is a need, are legal expenses covered?