Losses that may occur from deals such as building loan certificates, title records are protected by title insurance policies. Both the owner of the property and the lenders use title insurance to protect their real estate investment from unpredicted title problems. The main difference that separates title insurance and property insurance is that title insurance defends against the past as well as the future.

Title insurance can be obtained for either residential or commercial real estate. Even though it has been used for years in the U.S., it just lately become popular in Canada through companies such as First Canadian Title or other such companies. The highest policy payout of the majority title insurance is limited to the purchase price, however inflation riders may be added to account for the future value of the home.

Canadian title insurance companies take care of most of the problems that improper documentation may create in real estate deals. These include problems resulting from outstanding liens resulting from mortgages, judgments, tax arrears or utility bills. Right of access problems, third party interest in the title, defects in the filing of the official documentation and improperly signed, sealed or delivered documents are other factors covered by title insurance. The troubles these issues cause for Barrie real estate and other areas has made this type of coverage popular.

Extended policies can cover such issues as theft of one’s identity which result from forgery or from any future incompetence or deceit that can influence the title later as well as any covenants or barriers that can restrict the use of land and even builder’s liens. There are even stipulations for breaking of zoning laws or municipal bylaws due to existing structures or other easement problems. Of course, any contest over rights’ possession which arise from rentals, family law, options for homestead riders in addition to property access issues are also addressed by title insurance policies. This gives purchaser of Georgetown real estate, and real estate as a whole, some reassurances.

Basically there are four different kinds of title insurance available to both lenders and buyers. The normal coverage policy will protect you from fraudulent activity, errors in document filings, or improper marital declarations and recorded deeds. An expanded insurance policy tacks on coverage for deficiencies to the property not uncovered by inspection and also protects the rights of the parties that are in possession of the property. It is as a result of this coverage that has ushered many purchasers of Etobicoke real estate to not even consider buying without it.

Institutions and person’s carrying a mortgage can obtain a mortgagee’s policy, and for borrowers against property there is owner’s coverage. The stake of leaseholders are protected in separate policies, referred to as leaseholder policies, and the purchasers of property may seek title insurance that applies to a certificate of sale. Title insurance policy continues to be valid as long as the owner retains their interest, and generally title insurance is carried over with the property in case of the owner’s passing.

One way to determine a good real estate deal is to ensure the property qualifies for title insurance, which means it has the necessary records in place to make it an acceptable risk. If a policy is purchased before the possession date, it get rid of the need to obtain a copy of the survey. This frees up a considerable sum in initial expenditures.

Author Bio: Stefan Hyross has been researching many property markets and topics. Search for real estate in Barrie and as well Georgetown real estate online. You can also find current Etobicoke real estate news and information.

Category: Real Estate
Keywords: real estate, buying, selling, title insurance