Why We Recommend Title Insurance

Title Insurance


Whether you’re purchasing a house, vacant land, rural property, condominium or recreational property, we highly recommend the use of title insurance in all real estate transactions. Title insurance brings security and peace of mind to lenders and homeowners during and after the real estate process, quite possibly saving them thousands of dollars should a claim arise.

For a one-time fee of approximately $250, title insurance provides coverage for the entire length of your ownership of the property. Title insurance even be purchased by existing homeowners and provides coverage back to the time of purchase.

As the name implies, title insurance covers many of the risks associated with maintaining secure title to your property. Some of the insured risks on residential properties include:
• Violations of municipal zoning bylaws
• Encroachments onto an adjoining property (other than fences and boundary walls)
• Setback violations
• Unknown or undisclosed tax arrears
• Existing work orders
• Lack of legal access to the property
• Someone else owns an interest in your title
• Existing liens against the title
• Incorrect land use registrations
• Condominium assessments that were unknown at the time of purchase
• Hidden deficiencies such as underground storage tanks
• Unregistered utility easements
• The inability to market the property due to matters that would have been revealed by an up-to-date Real Property Report (RPR)
• Fraud, forgery, and false impersonation to the extent they affect the validity of title

At times, a title insurance policy can be obtained by the seller to satisfy an old real property report (RPR), thereby saving you hundreds of dollars. This is most common with rural purchases such as vacant land, acreages and farms. For residential purchases, it’s less common as buyers are advised that if issues become known regarding lack of permits, encroachments etc. then they’ll be responsible to correct the concern and endure the costs of doing so, before they can resell the property.

Years ago, we had an acquaintance purchase what she thought was a commercial property in North Edmonton through another agent. Although the property claimed to be zoned commercial, it was in fact only zoned residential. Within a year of transferring her business to the new property she learned that she wasn’t utilizing the property according to it’s designated land use. Thankfully she had purchased title insurance, which protected her in two areas. First of all she could continue to operate her business at the said property until it sold. Secondly title insurance covered the interest on her mortgage for the duration of time it took her to sell the property, thus saving her over $8000/mos. in interest, totally nearly $200,000 in a 2 year period. The stress and turmoil in having to sell the property and move her business was more than she expected, but imagine the relief she experienced in having a large portion of her payments covered each month.

In our view, the protection and peace of mind for the lifetime of your ownership justifies the premium you pay for the policy. To learn more about title insurance, contact a local real estate law office like Jackie, Handerek and Forester at 780-986-5081.

If you or anyone you know has considered buying or selling a home, give us a call. It’d be our highest honour to serve you!

Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate, LIKE our Jason Rustand Team Facebook page, call us direct at 780-980-2828, email jrteam@shaw.ca or visit WeSellLeduc.com