Quite often, purchasers don't know the importance of Title Insurance.
Here are some risks that Title insurance covers:
- Unpaid strata assessments
- Work orders and/or zoning setbacks that are non-compliance
- Liens, encumbrances, or defects in the title to a property
- Property Tax Arrears
- Defects that would have been revealed by an accurate, up-to-date survey
- Governmental Authority forcing you to remove or remedy your existing structures or any part of them, other than a boundary wall or fence, because any portion of your existing structures was built without obtaining a required building permit
- Another party claiming an interest in the property
- Impersonation, forgery, fraud, duress, incompetence, incapacity
- Title is unmarketable, which allows another person to refuse to perform a contract to purchase, to lease, or to make a mortgage loan
When a property is purchased, Title insurance can be purchased for a one-time fee. Depending on the premium you pay, it can protect you and your lender, or your lender only. A title insurance company issues the policy, and the policy remains in effect for as long as you own the property.
Note that a new policy may be required if you change mortgage lenders. To obtain a quote on Title Insurance in BC, call 1-866-570-2206 or visit https://www.fct.ca/contact/ for a list of locations in all of Canada.
This information is being provided to assist in the planning of a home purchase. It is not intended to be legal advice and the information set out may not be applicable in all cases. In some situations, a purchaser may be required to pay for other additional expenses such as a second mortgage, an assignment of rents, power of attorney, or independent legal advice.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty