Edmonton Title Insurance: Everything You Need To Know.

Edmonton Title Insurance HelpIf you live in Edmonton, or anywhere else in Canada you’ve probably noticed that recently there has been a big push for title insurance and wondered what it is and if you need to purchase it. Determining whether or not you need title insurance is definitely something you should discuss with an Edmonton Real Estate Lawyer because we can help you decide.

Today however I’m just going to cover some basics so you understand what title insurance is, if you need it and whether or not you can transfer title insurance to another property.

What Is Edmonton Title Insurance?

Just like automobile and life insurance, title insurance is a policy that protects the owner of a commercial or residential property against any losses that are related to the title. These losses can include liens on the title, title defects, fraud or survey errors just to name a few.
As the owner of a property, you are responsible for these potential losses and having title insurance can protect you if it falls under the conditions covered in your title insurance policy.

Who Can Take Out Title Insurance?

Title insurance isn’t just for property owners, despite what the name indicates. The person seeking to purchase a home (purchaser) may take out a title insurance policy, but the institution lending money for a specific property may also purchase a title policy.

The difference between these insurance policies is the term of the coverage. A purchaser or owner is covered against losses related to the property title for as long as they own the property whereas the lender policy covers the institution only for the duration of the mortgage.

What Does It Cover?

As with any insurance policy, title insurance covers a wide variety of losses and damages related to titles. Depending on the location of your property some forms of risk may not be covered by your policy. For this reason it is recommended that you speak with Edmonton real estate lawyers to find out what types of risks are not likely to be covered.

In general title insurance policies cover irregularities in the survey, removal of structures by force, unregistered easements, past due property taxes, unpaid utility bills and encroachment issues. These are factors typically covered by title insurance, but you should read the coverage policy thoroughly so you know exactly what is and is not covered by your policy.

Is It Transferable?

Many new homeowners want to know if the title insurance is transferable from the previous owner to them, and sadly the answer is no. You want to make sure that the title insurance you have begins when the purchase of your new home is complete, or risk being held financial responsible for losses that covered by title insurance.

Since purchaser title insurance is only good for the duration of the mortgage, it makes sense that once a new mortgage has been assumed on the property that a new title insurance policy is required.

Title insurance taken out by the lender however, can be transferred in the event that a mortgage has been sold to another investor or mortgage company.

Preparation

Before you buy or sell real estate you should request a Real Property Report (RPR) so you can find out the boundaries of the property as well as any improvements made to the property or structures on the property. Although this won’t help you know everything you will need to secure title insurance coverage it is a good place to start.

Most Edmonton real estate lawyers will recommend that you also conduct a public records search to find out if there are any liens or easements or fraud allegations on the property. Because these potential losses won’t show up on the RPR, it is best to secure title insurance to cover unknown losses.

Insurance policies can be tricky to understand which is why it is best to get advice from a real estate lawyer before you make a final decision.

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