What is Title Insurance?
April 14, 2015 | Posted by: Dawn Stephanishin
Title insurance is an insurance policy that protects you as a Buyer and the Lender offering a Mortgage over the property. There are 2 types of policies, the Lender Policy and the Homeowner Policy.
Title insurance covers things such as Fraud, bylaw infractions, property tax arrears, zoning issues, some septic issues, encroachment and much more. There is also a gap insurance coverage that will help if you are unable to complete the purchase as of the date of completion for one of the property infractions the policy covers.
Title insurance is available from your Lawyer or Notary office and will be arranged at the time of purchasing the home, so be sure to ask for their professional advice on the specific policies. The cost of title insurance is approximately $225-$300 and depends on if you are buying both Lender and Homeowner policies and the actual purchase price of the home. Most Lenders will require the Lender Policy as a condition of financing.