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    What is Title Insurance?
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    According to the Rules of Professional Conduct of the Law Society of Upper Canada, lawyers must offer purchasers with the option of closing with or without title insurance, and providing an explanation of each scenario. Here is an excellent discussion of this matter - "Working with a lawyer when you buy a home".
    Really, title insurance is like any other insurance you get. Something goes wrong, you call your insurance people, they send someone out to assess the damage and then they "make it right". If you make a claim, the problem gets investigated and the insurer will either fix it (e.g. paying to move a tool shed that is on the wrong side of your property line or paying an amount owing for taxes or condominium fees that have not been paid to date by the previous owner) or provide you with money for losses or damages suffered. The insurance company may also pay the cost of your legals if the matter ends up going to litigation.
    The main difference between title insurance and a lawyer's "opinion" on title is that without title insurance, the homeowners may have to negotiate with their lawyer if a title-based problem crops up, or even sue to be compensated. With title insurance, you get results. It's easy, cheaper and makes more sense for you. We do it with 100% of our deals and it's included in our all-inclusive fee.
    Getting title insurance actually saves you money by eliminating expenses such as Toronto's $100.00 work order search fee. In cases where there is no survey (happens all the time), the savings can be in the high hundreds.
    Purchasers have a choice of title insurers. We use First Canadian Title.
    First Canadian Title offers legal services coverage in addition to the title insurance coverage. This covers any error or omission on the part of the lawyer handling the transaction and specifically covers failure to register documents or remove encumbrances from title, as well as improper adjustment of any items (like taxes) on closing.
    For a one-time premium (included in our fees already), title insurance provides you with coverage for as long as you have an interest in the property.
    You can get title insurance when purchasing a home or for your existing home ? whether it's a single-family house, multi-unit dwelling up to six units, condominium or a cottage.
    Residential title insurance is an effective and inexpensive way to ensure you are protected against:
    - Fraudulently registered mortgages against your title
    - Errors on surveys*
    - Encroachments onto neighbouring properties *
    - Zoning infractions *
    - Many more known and unknown defects that could affect your ability to mortgage or sell your property in the future.

    David FeldĀ is an experienced residential real estate lawyer. You can learn more about him by visiting his website:

    Disclaimer: Content on this website is provided for informational purposes only and does not constitute a legal advice.

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