A common questions posed to real estate agents by their buyers, is whether or not title insurance should be purchased.
I thought that I would give you 15 good reasons to buy title insurance. Actually, there are more than fifteen, but if these fifteen are not enough, then you're just not going to be convinced.
Until 1997, the common practice in Ontario was to secure an opinion on title from a solicitor. If something went wrong, then you simply sued the lawyer. Now, that's easier said than done! Title insurance has now come to the rescue. Certain identified risks are covered under a policy of insurance. The coverage is much broader than the matters set out in an opinion letter from a solicitor.
Here are some of the reasons why "insurance" may be better than an "opinion":
1) it covers matters not included in a title opinion,
2) you don't have to sue your lawyer if something goes wrong,
3) it provides funds to solve the problem,
4) the insurer provides creative solutions to rectify the issues,
5) it pays your legal fees,
6) it provides compensation to you, if your problem cannot be resolved,
7) it covers the claim and legal fees if someone sues you,
8) it's inexpensive, and there is a one-time premium,
9) you may save on the usual disbursements in a transaction because some searches are not completed,
10) you may save the cost of a new survey in most cases,
11) it protects you against survey errors, in both old an new surveys,
12) it protects against errors in information provided by municipalities and utilities,
13) you may negotiate to obtain additional coverage for other issues including environmental hazards, native land claims and risks you have assumed by contract,
14) it protects you against certain construction liens,
15) it protects you against fraud and forgery,
16) it continues to provide coverage for problems arising after the closing date,
17) it protects your mortgagee so that the deal will be closed and the mortgage funds advanced,
OK, these should be enough to get title insurance.
And, I'm sure you (clients) really didn't want to sue your own lawyer!