Did You Ever Wonder What Title Insurance Covers? Did you ever wonder what title insurance covers? Title insurance policy may provide protection from such losses as: Unknown title defects that would affect clear ownership. Existing liens against title. Encroachment issues, such as a structure on the land that needs to be removed because it sits partly on a neighbor’s property. Title fraud, before or after closing. Errors in surveys or public records. Any other title-related issues that would affect the ability to sell, finance, or lease the property in the future. Title insurance also covers losses sustained by owners when title to their property has been affected or stolen by fraudulent transactions. Typically, the insurance covers most legal expenses in restoring clear title. Title insurance also protects owners against losses due to unresolved conflicting ownership claims at the time of purchase, old or improper mortgages, liens, special assessments, tax and public utility arrears, improper title documents and regulatory compliance issues such as notices of violation, work orders, building permit problems and setback deficiencies. Other covered risks include the inability to live in the home under zoning bylaws and the absence of a legal right of access to the property. Title insurance policies usually do not provide protection against: Title defects that were known prior to closing. Environmental hazards and soil contamination. Native land claims. Problems that would only be discovered by a new survey or inspection (such as a smaller lot size than originally anticipated). Matters not listed in public records, such as unrecorded liens. Zoning bylaw violations caused by changes, renovations or additions performed by the policy owner. Certain government rights in the land (such as the right of expropriation). Problems the buyer agreed to assume but failed to inform the title insurer or title company about The buyer’s ability to change the use of the land or undertake renovations, construction or expansion. Title insurance can also provide “gap” coverage for a delay between the handing over of the purchase money and the subsequent registration of the property in the purchaser’s name. Coverage lasts for the entire period of ownership of the property and most companies extend this coverage to the heirs who inherit the property, to a spouse in the event of a divorce, and to children if the property is gifted to them. For any other questions contact us we have the answers!
Posted on: Fri, 01 Aug 2014 16:51:04 +0000
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