What is Title Insurance?

Nowadays, TITLE INSURANCE is required by many lenders when you obtain a mortgage.  When you buy a house, your ownership is registered in the Land Title Office and your name is put onto the property’s Certificate of Title.  The lender’s name is also put on title as a mortgage holder. 

Title Insurance protects the lender and you against any losses that may occur relating to your property’s title (ie. Your ownership of the property).  Title Insurance is paid for upon the completion of your purchase (at your lawyer’s or notary public’s office) and generally costs around $200-$300. 

To make things simple, here’s a quick list of what Title Insurance may cover:

·         Title defects (ie. Any issues with title that keep you from having clear ownership of the property, such as liens, charges, etc.)

·         Title fraud, forgery, or duress

·         Errors in survey certificates

·         Any other title-related issues that may hinder your ability to sell, mortgage, or lease your property in the future

Again, not all lenders require Title Insurance but it is good to know that you may be required to pay for it when you buy a house.