If you’re a regular reader of this blog, you know that using title insurance on every deal is the best way to keep your clients protected, as well as yourself. But for homebuyers navigating the closing process, it can feel like one additional detail among all the others.
Many buyers unfamiliar with title insurance get it confused with home insurance, which they know is a required purchase. But home and title insurance protect homeowners from completely different types of risks:
Title insurance covers dozens of individual risks, but they break down into three categories: title, off-title and transactional. Here are some of the most common risks homeowners encounter:
Title issues affect the clear ownership of a property. When the owner tries to sell, a defective title can make it impossible to legally transfer ownership of the property until it’s resolved.
Off-title issues include potential legal problems with a property. They often involve how the property can be used, or who has access to it.
Transactional issues cover a variety of problems from issues with property surveys, to a lack of corporate authority. But the most significant transactional risk is title fraud.
It varies, but in general, most home insurance policies share a few standard types of protections:
Title insurance uses a one-time premium paid by the policy holder, not a monthly or annual payment. The premium uses a base price that scales slightly with the value of the property. Premiums vary from province to province, but are typically in the mid-to-low hundreds.
Title insurance coverage varies from province to province. Contact FCT to learn more about the coverage in your region.
The best way to protect clients from expensive and unexpected costs related to their property is to make sure they have title insurance, in addition to their home insurance. For a one-time premium, they get protection for as long as they have an interest in the property, and that protection can even transfer to their heir(s).
Your client’s home is one of the most important investments they will ever make. Don’t leave that investment at risk: make sure every transaction closes with the help of title insurance from FCT.
Insurance by FCT Insurance Company Ltd. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.
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