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
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