Title Insurance
- Comments: 1
- Posted on: January 30th, 2008
I’d never heard of Title Insurance until we bought a home in Texas in 2000. The term confused me, but I quickly learned it was a necessary buyer protection.
Basically, title insurance provides coverage for future claims or future losses due to title defects which are created by some past event, prior to your acquisition of the property.
The title insurance company will search public documents before your purchase to discover any existing claims against the property. Claims may include liens, defects or encumbrances. This knowledge allows you, as the purchaser, to resolve issues such as unpaid taxes, defaulted mortgages, or encumbrances on title or resolve issues with the seller prior to your purchase.
A ‘hidden risk’ which is not discoverable at the time of purchase is also covered by title insurance. The title company will defend your title, in court if necessary, at no cost to you. bearing the cost of settling a future case, if it proves valid. Do your homework, read the fine print, choose wisely.
The purchase of a home or property may be your single largest investment and one which no doubt will increase your net worth over your lifetime. Protect yourself, your inheritors and your property by researching the various title companies and using the company with the best proven track record.
Knowledge is key to your future success!
Here in BC you don’t require title insurance. Our land registry (Torrens System) basically guarantees that the title with the Registrar is the valid title. For example, say you buy a house. Unknown to you, that same house had been sold to another buyer but they failed to register the deed with the land registry, you are safe (as long as this was a good-faith transaction) That is, you did not know that the place had previously been sold.
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