What is title insurance?

Wow, what a busy week—everything from assumable mortgages to multiple offers to foreclosures!  Never 2 deals the same in this industry—I love it! 

Some of you out there may have heard of title insurance, others may not.  Let me do a quick explanation of what this is and some of the things it may cover.  Every case is different and should be discussed with your agent and lawyer to decide if this is something that should be included. 

So what is title insurance? Title insurance is an insurance policy that protects residential or commercial property owners and their lenders against losses related to the property’s

title or ownership.

What does it cover? For a one-time fee, a title insurance policy may provide protection from such losses as:

* Unknown title defects (title issues that prevent you from having clear ownership of the property)

* Existing liens against the property’s title (e.g. the previous owner had unpaid debts from utilities, mortgages, property taxes or condominium charges secured against the property)

* Encroachment issues (e.g. a structure on your property needs to be removed because it is on your neighbour’s property)

* Title fraud

* Errors in surveys and public records

If you would like any more information about title insurance, just let me know! Have a great day!