The Importance of Title Insurance When Purchasing a Home in Ontario
When buying a home in Ontario, title insurance is an essential tool that helps protect your investment and provides peace of mind. Title insurance is a one-time purchase that protects homeowners against specific risks related to ownership of the property—some of which can be costly and complex to resolve.
What Does Title Insurance Cover?
Title insurance typically protects you against issues that could threaten your ownership rights, including:
Title Defects: This includes issues like encroachments (e.g., a fence or shed on your property line) or previous owners’ claims.
Outstanding Liens: Title insurance covers you if there are unpaid debts, such as utility or property tax liens, against the property that weren’t disclosed at purchase.
Fraud and Forgery: Ontario has seen rising instances of title fraud, where fraudsters use stolen identities to transfer or mortgage properties illegally. Title insurance protects you from financial loss if someone fraudulently claims ownership or encumbers your property.
Errors in Public Records: Mistakes in surveys or legal descriptions of the property are also covered.
Why You Need Title Insurance
Without title insurance, resolving these issues can be time-consuming and expensive, requiring legal action and additional fees. Title insurance, however, is a cost-effective, one-time premium that remains in effect as long as you own the property.
As a real estate lawyer, I strongly recommend title insurance to ensure you have a safety net against unexpected title issues, which might otherwise cause financial and legal challenges after your purchase. Title insurance provides peace of mind, helping you feel confident in your ownership rights and future security.
Author:
Rina You
Partner
e: ryou@realtycarelaw.com