Title Insurance is insurance against loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. It is meant to protect an owner's or lender's financial interest in real property against loss due to title defects,liens or other matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.
EXAMPLE: You find out two years after purchasing your home that you have been a victim of identity fraud. Someone has just stolen your identity and sold your home without you even knowing it! Now a third party purchaser has a legitimate claim to your property. If you had purchased title insurance prior to purchasing your home, the policy will protect your investment.
Click below to learn more about Title Insurance!
Protecting your Home Investment
A home is usually the largest single investment any of us will ever make. When you purchase a home, you will purchase several types of insurance coverage to protect your home and personal property. Homeowner's insurance protects against loss from fire, theft, or wind damage. Flood insurance protects against rising water. And a unique coverage known as title insurance protects against hidden title hazards that may threaten your financial investment in your home.
Protecting Your Largest Single Investment
Title insurance is not as well understood as other types of home insurance, but it is just as important. You see, when purchasing a home, instead of purchasing the actual building or land, you are really purchasing the title to the property - the right to occupy and use the space. That title may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss. Title insurance protects against these types of title hazards.
Other types of insurance that protect your home focus on possible future events and charge an annual premium. On the other hand, title insurance protects against loss from hazards and defects that already exist in the title and is purchased with a one-time premium.
Two Kinds of Title Insurance benefit You in Two Ways
There are two basic kinds of title insurance:
Lender or mortgagee protection,
Owner's coverage.
Most lenders require mortgagee title insurance as security for their investment in real estate, just as they may call for fire insurance and other types of coverage as investor protection. When title insurance is provided, lenders are willing to make mortgage money available in distant locales where they know little about the market.
Owner's title insurance lasts as long as you, the policyholder - or your heirs - has an interest in the insured property. This may even be after you have sold the property.
Depending on local practices and laws where the property is located, you may pay an additional premium for an owner's policy or you may pay a simultaneous issue charge - usually a smaller amount - for the separate lender coverage. You may even split settlement costs with the seller for the lender or owner's policy.
What does Your Premium Really Pay For?
An important part of title insurance is its emphasis on risk elimination before insuring. This gives you, as the policyholder, the best possible chance for avoiding title claim and loss.
Title insuring begins with a search of public land records affecting the real estate concerned. An examination is conducted by Parnes Rothman and forwarded to the Title Insurer's underwriter who determines whether the property is insurable. The examination of evidence from a search is intended to fully report all "material objections" to the title. Frequently, documents that don't clearly transfer title are found in the "chain," or history that is assembled from the records in a search. Here are some examples of documents that can present concerns:
Deeds, wills and trusts that contain improper wording or incorrect names;
Outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes;
Easements that allow construction of a road or utility line;
Pending legal action against the property that could affect a purchaser; or
Incorrect notary acknowledgements.
Through the search and the examination, title problems are disclosed so they can be corrected whenever possible. However, even the most careful preventative work cannot locate all hidden title hazards.
Hidden Title Hazards - Your Last Defense
In spite of all the expertise and dedication that go into a title search and examination, hidden hazards can emerge after closing, resulting in unpleasant and costly surprises. Some examples of hazards include:
A forged signature on the deed, which would mean no transfer of ownership to you;
An unknown heir of a previous owner who is claiming ownership of the property;
Instruments executed under an expired or a fabricated power of attorney; or
Mistakes in the public records.
Title insurance offers financial protection against these and other covered title hazards. The title insurer will pay for defending against an attack on title as insured, and will either perfect the title or pay valid claims. All for a one-time charge at closing.
Your home is your most important investment. Before you go to closing, ask about your title insurance protection, and be sure to protect your home with an owner's title insurance policy.
PARNES ROTHMAN is pleased to offer access to the following title insurance companies:
STEWART TITLE GUARANTY COMPANY
Stewart Title Guaranty Co. is a leader in the Canadian title insurance industry and was licensed to operate in all provinces and territories in 1988. Stewart Title's Canadian Division is headquartered in Toronto and has offices from coast-to-coast. Best known for its innovative technology systems that enhance the real estate closing process, Stewart Title helps its customers increase efficiency and decrease costs by offering value-added title insurance products for residential and commercial properties.
FIRST CANADIAN TITLE
A title insurance policy from First Canadian Title provides home buyers with secure ownership for as long as they (or their heirs) own the property. First Canadian Title has been providing secure and efficient real estate solutions to Canadians since 1991, earning a solid reputation for being a leader provider for title insurance and other real estate related products and services.
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CHICAGO TITLE INSURANCE COMPANY CANADA
Chicago Title Insurance Company has been providing security for real estate transactions for over 150 years and has been protecting Canadians for the last 35 of those years. Chicago Title is a subsidiary of Fidelity National Title Group, the world's largest title insurer and an industry leader in all measures of financial strength.
TORONTO - Friday, July 4, 2008 -- TREB Members reported 8,600
sales in June, TREB President Maureen O’Neill announced today.
“Sales were down 18 per cent from the 2007 total of 10,451, which was the
best performance ever for that month,” noted the president. “Nevertheless, the 8,600 figure is the fifth best June on record, and indicative of an active, healthy market.”
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