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Sep 19, 2017

Asking about title insurance may help avoid real estate disputes

When purchasing properties, new owners naturally want to protect themselves as much as possible from damage, fraud and other issues. Many Ontario homeowners try to avoid real estate disputes related to these issues by purchasing home insurance as well as title insurance. Questions often arise regarding what these two types of insurance protect, and whether both are worth considering when buying a property.

Although title insurance and home insurance both protect a buyer's home in certain respects, they are not the same thing. The title on the home refers to ownership of the property according to Ontario's land registration program. While home insurance protects property owners against physical property damage, like a fire or theft, title insurance is focused on protecting an owner in real estate disputes concerning the legal ownership of home.

Title insurance is not legally required in Ontario, and a lawyer may be able to let a client know whether it is a good idea in one's case. It offers coverage on a range of risks, including title fraud, existing liens against title, and encroachment issues. Title insurance is usually offered as a one-time fee, and coverage lasts as long as property is owned.

Real estate agents and brokers are not typically involved in conversations about title insurance. An Ontario lawyer is the best person to analyze an individual case and inform clients on what insurance is worth considering when purchasing a home. They can also review policies and offer assistance in any real estate disputes which may arise.