Title Insurance: The Real Estate World’s Secret Weapon

Buying a property in Canada or thinking about it? In this week's blog post, our very own LeeAnn Roz shares some critical knowledge about Title Insurance! Never heard of Title Insurance, you say? You’re not alone…read on!

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"Buying a property can be an exciting and nerve-wracking experience. You've found your dream home and now it's time to make it yours – but hold up! Have you got your Title Insurance yet?

Think of Title Insurance as the real estate world's secret weapon. It's the thing that protects you against the bad guys (disputes over ownership, hidden liens, and errors in public records, to name a few). With Title Insurance on your side, you can feel confident and secure in your property ownership.

Here are a few of the things it can provide:

• Protection Against Title Disputes: Title Insurance protects against disputes over the ownership of a property. This includes issues like conflicting claims of ownership, undisclosed liens, and other title-related disputes. With Title Insurance, you don't have to worry about losing your dream home over a technicality.
• Coverage for Hidden Risks: Title Insurance also covers hidden risks that may not be revealed until after the purchase of a property, such as fraudulent or forged documents, errors in public records, or undisclosed liens. Title Insurance is like a real estate detective, uncovering potential problems before they become a big issue.
• Cost Savings: Title Insurance is often more cost-effective than the alternatives, such as hiring a lawyer to investigate the title and handle any disputes that may arise. And unlike other types of insurance, Title Insurance is a one-time cost that provides protection for as long as you own the property.
• Legal fees: incurred if you ever have to defend your title in court.

It's important to note that Title Insurance is required by most mortgage lenders in Alberta; however, that policy is generally taken out for the benefit of the lender and will not protect you if issues arise. It's also worth noting that you can add Title Insurance to your home at any time, but if you get the policy at the time of purchase it is often cheaper than adding it at a later date.

Here's a real-life example where Title Insurance helped some First Foundation clients:

The Clients purchased a home with a fully finished basement. They wanted to make some changes/upgrades and applied for permits with the City. It was brought to light that the former owner did the basement work on their own without permits. The work was not done up to code. In order to bring the entire basement up to code, they needed to do approximately $40,000 in renovations. Luckily, they had Title Insurance! As the original, unpermitted developement was done before they purchased the home, the Title Insurance paid for the entire basement to be renovated as the home owner wanted with everything brought up to code.

Owning a home will still be exciting and nerve-wracking, but with title insurance on your side you can feel a little more confident and secure in your property ownership!"

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Keeping you informed with important information like this is one of the many reasons we think #brokeredisbetter.

If you're looking for help with your Mortgage OR Insurance for your new home, First Foundation is just a few clicks away.

Contact us today!