Typical Title Insurance Coverage:

  • Someone else owns an interest in your title.
  • Existing liens against the title.
  • Violations of municipal zoning by-laws.
  • Encroachments onto an adjoining property (other than fences and boundary walls).
  • Setback violations.
  • Realty tax arrears.
  • Outstanding municipal utility charges, provided such charges form a lien on title.
  • Existing work orders.
  • Lack of legal access to the property.
  • Un-marketability of the land due to adverse matters that would have been revealed by an up-to-date survey / RPR / Building Location Certificate.
  • Fraud, forgery, and false impersonation to the extent they affect the validity of title.


Some Title Insurance Coverage


Realty Tax Arrears
  • Property tax arrears is also carried over to new owner with property transfer.
  • Title Insurance covers most incidents of previous owner’s property tax arrears.

Existing Work Orders

  • Renovations performed by the Seller may be subject to outstanding work orders that the Seller has failed to disclose.
  • Title Insurance covers most undisclosed outstanding work orders.

Survey

  • Un-marketability of the land due to adverse matters that would have been revealed by an up-to-date survey / RPR/ Building Location Certificate.
  • Surveys are not required when you have Title Insurance.
  • Title Insurance covers most undisclosed defects that may be revealed by survey.

Identity Fraud

  • Fraud, forgery, and false impersonation to the extent they affect the validity of title.
  • This is a coverage that continues to benefit the Buyer even long after the purchase.
  • Example: Someone pretends to be the home owner and sells or mortgage the property.

 

Remember Title Insurance is an Insurance

  • Remember Title Insurances are insurances, and Title Insurance companies only profits when premiums received are greater than the claims payouts.
  • Like other insurances, there are exceptions to coverage provided by Title Insurance companies.  If you are unclear about a situation, ask a lawyer or ask the title insurance companies directly.


Title Insurance Costs


For properties (in Ontario) value under $500,000 Title Insurance generally costs a one time premium of:
  • Non-Condominium: $350 + PST (approx.)
  • Condominium: $200 + PST (approx.)
Excess Title Insurance for over $500,000 property:
  • Approximately $100 for every $100,000 property value over $500,000
FCT (First Canadian Title) Costs:
  • Example for $800,000 Detached House:
    • $350 + [ ($800K - $500K) / $100K ] x $100 = $ 650 + PST
  • Example for $600,000 Condo:
    • $200 + [ ($600K - $500K) / $100K ] x $100 = $ 300 + PST


Some Popular Title Insurance Companies