Title Insurance, Who gets it?

[tm.88]

I am curious as to what percentage of beyonders has title insurance on their property. With the fraud that takes place it seems as almost a no brainer however quite a few people still choose not to go with it.

Imagine waking up to find out you no longer own the home you have paid for all your life or finding out that half of your home has been leveraged.

[Grogador]

Heard an ad on the radio for this, WTF is it and how exactly would you be responsible for someone 'stealing' your house or something ??

[tm88]

K well seeing as results on the poll are showing alot of people are unaware as to what it is...

For roughly a few hundred dollars your title is protected under your name. A recent case in BC, someone, somehow changed the name on a title to their own name. They then went on to leverage their "so called home" for much of the mtg to receive what would be considered a loan. The theifs then take off with the money. The home owner does not find out until he/she applies for credit or something along those lines. They may be rejected or questioned on the loan.
Title insurance basically guarantees that this will not happen. I do not know how they do it. My guess would be something along the lines of a phone call regarding changes in the title etc.
For in depth details you should talk to your lawer.

[Akagi Redsuns]

Originally posted by tm88
K well seeing as results on the poll are showing alot of people are unaware as to what it is...

For roughly a few hundred dollars your title is protected under your name. A recent case in BC, someone, somehow changed the name on a title to their own name. They then went on to leverage their "so called home" for much of the mtg to receive what would be considered a loan. The theifs then take off with the money. The home owner does not find out until he/she applies for credit or something along those lines. They may be rejected or questioned on the loan.
Title insurance basically guarantees that this will not happen. I do not know how they do it. My guess would be something along the lines of a phone call regarding changes in the title etc.
For in depth details you should talk to your lawer.

I'm shocked at the lack of safeguards in respect to a title transferring without the home owner knowing. WTF is that? You think for something valued in the hundreds thousands that someone would check with the name on the title to ensure that property is changing hands. Why doesn't the land title office change its policy and do this to prevent fraud? Makes no sense that they wouldn't.

I guess you can fake the lawyers and the phone calls and then it done.

[tm88]

Well im amazed at what theifs can do when it comes to crazy things like this. Alot of lawyers will recomend getting a survey of your property done as well. They say having title insurance but not getting a survey done is like leaving your car unlocked with the key in the ignition because you have theft on your policy.

I personally feel title insurance is enough. Especially when a survey can cost 10x that of title insurance.

[Akagi Redsuns]

It's old article, but damn, I hope it's not this easy to do these days and that lessons have been learned, but your reference to a BC case makes me think that nothing has changed.

http://www.cbc.ca/consumers/market/f...s/real_estate/

[barmanjay]

Title Insurance

It does more than just cover you for fraud.

If you purchase a home and there was an unknown special assessment, tax caveat or any other utilitly charges in arrears from the previous owners - It will protect you from those debt collectors, because the debt isn't yours.

If you purchased a house that had a kitchen "renovation", but a couple years later something happens to the kitchen, and in further investigation no permits were issued for the "renovation" - it will reimburse you to re-renovate your kitchen properly

If your 30 year old house(duplex) was origionally built 12" off center and is encroaching on your neighbours property (known encroachment or unknown) - It will protect you from any claims your neighbour may lay on you.

If the previous owners built a fence encroaching onto your neighbours property by 6", or if your neighbours built a fence encroaching onto your property - it will give you the funds to fix the encroachment ($500 deductible for this)

If your property has a known or unknown encroachment onto city property, the city has the right to tell you to fix and it must be done in 30 days otherwise they do it and charge you - It will cover the expeses to fix the problem.

You purchase a house with a garage and later find out it's encroaching onto your neighbours property 10" - It will reimburse you to demolish and rebuild the garage, if a garage cannot be built onto the property ever again,.. it will refund you property value losses aswell.



There's more that title insurance does for you,.. but I can't think of it just now.

Had a meeting with Jim Lee from First Canadian Title and he explained all of this to our brokerage. Was great info.


Yes - you CAN purchase title insurane after you've owned your home for many years too.


I think prices range from a realtor supplied $240 (during home purchase - if offered by realtor), up to about $400+ on your own pending any known encroachments and etc.

These are one-time fees - NOT annual fees.

It stays with you for as long as you own the property

If you poke my brain a bit more,.. I may have more info up there, but I'm done writing about it right now.


www.firstcanadiantitle.com

[tm88]

I am assuming this is the meeting i could not make.
Anyways, thanks for the info Jay. I was up late lastnight reading all sorts of situations that have to do with this.

[gl878]

I recently purchased a house. My Bank required that I get Title Insurance.

I asked the Lawyer and he said its very common requirement these days.

[barmanjay]

yes it's becoming more popular

the lawyers usually get it for the banks only (cost is $175ish) so the bank is covered incase something comes up.

Sometimes you have to request the extra for your own coverage

Best is to get the whole meal-deal

[4runneron36s]

Bringing this back up from the dead.

Title insurance is not necessary in Alberta because all Certificates of Title (C of T) are insured automatically through our land registration system. It is used in the states because of their lack of a decent land registration system.


Title insurance never solves any problems on your title, it only passes it on to the next person who buys your house. And because the purchaser of the house has to buy title insurance, you're inheriting a lot of liability.

An RPR shows you all you need to know about the property. You can see at once any defects in the title (ie encroachment of buildings). Also, this is a cost associated with the seller, so it saves the buyer a bit of money.