TITLE INSURANCE

Title insurance is an insured statement of the condition of title of real property at the time the policy is issued. It can eliminate the need for costly searches while continuing to satisfy the requirements of owners and lenders alike. It facilitates closing by insuring for many known or potential defects. For a one-time premium, title insurance stays in effect for as long as you own the property. For a one time reasonable fee, you can insure your title against future perils of the nature described in the following articles. In addition, as a seller, your policy facilitates closing and mitigates interest charges caused by delays in title transfers.

Fraud is on the Rise

The incidence of fraud in real estate transactions continues to increase and is of major concern to lending and real estate communities. Common characteristics in fraudulent transactions come to light. These indicators may assist you in recognizing fraudulent activity in the case of purchase or refinance transactions.

• The property is rented
• The subject can only produce minimal identification
• The subject will only provide a cellular number for contact purposes
• Inquiries and established credit are inconsistent with sellers age, income or profession
• A counter cheque is presented for deposit instead of a personalized cheque.
• A transaction is completed without a face-to-face meeting with the subject
• Employment information cannot be verified
• Recent activity on the title (i.e. registration of a transfer or mortgage discharge
• Direction to pay the funds to a 3rd party

Title insurance protects you from becoming a victim of real estate title fraud.

Features & Benefits

• Building Permit Coverage - For alterations made to a property, prior to closing and without a proper permit, where those defects must be rectified, the policy covers the cost of rectification
• Condominium Special Assessment Coverage - When the condominium corporation issues a special assessment prior to closing and without the required notice, the loss associated with the assessment is covered by the policy.
• Fraud and Forger Coverage - If the title is fraudulently transferred, you will be relieved of the cost of defending their right of ownership and any loss associated with a fraudulent mortgage that is entitled to remain registered against title to the property.
• Gap Coverage - Protects both owner and lender against encumbrances, liens, other mortgages and writs of execution that could affect priority between closing and actual registration.

Types of Policies

• Residential Title Insurance Policy - A Home owners Protection Policy provides the broadest protection for someone in the process of purchasing a new or resale home or condominium. It protects you from unforeseen problems beyond your control such as municipal errors or condominium special assessments.
• Existing Home Owner Policy - Protects against damages incurred as a result of fraud perpetrated against the title for as long as the homeowner has an interest in the title.
• Deferred Closing Costs, Six months, interest free - Provides you with financial breathing room when you need it most. You are automatically approved to defer closing costs when you've negotiate your mortgage through one of the following lenders:

Royal Bank	Scotia Bank
National Bank	TD Canada Trust
President's Choice	CIBC Mortgages
FirstLine Mortgages

Commercial Policies

Commercial title insurance yields many of the same benefits as residential title insurance, but is designed to handle the more complex details typical of a commercial real estate transaction. From the larger commercial transactions to the small business owner or investor purchasing a property, policy coverage can make the difference when timing is critical and details are complex.

Commercial policies can be issued for:

• Commercial and industrial properties
• Residential properties containing more than six units
• Mixed use properties
• Vacant land zoned commercial or industrial
• Agricultural properties without a residential component

Claims Handling

Once a party makes a claim for a matter covered under their policy, it becomes the Insurers responsibility to handle the claim. Title insurance protects you from title related losses and includes a no-fault claims resolution process. If there is a challenge to your ownership, the insurer will assume the responsibility of defending your rights, providing compensation when required, and covering any costs over and above the policy amount.

Covered Title Risks

1. Someone else owns an interest in your Title
2. Someone else has rights affecting your Title arising out of leases, contracts or options
3. Someone else claims to have rights affecting your Title arising out of forgery or impersonation
4. Someone else has an Easement on the Land
5. Someone else has the right to limit your use of the Land
6. Your Title is defective
7. Any of Covered Title Risks 1 through 6 occurring after the policy date
8. A document upon which your Title is based is invalid because it is not properly signed, sealed, delivered or registered.
9. Someone else claims to have rights affecting your Title arising out of fraud, duress, incompetency or incapacity.
10. You do not have both actual vehicular and pedestrian access to and from the Land, based upon a legal right
11. You are forced to correct or remove an existing violation of any covenant, condition or restriction affecting the Land
12. Your title is lost or taken because of a violation of any covenant, condition or restriction which occurred before you acquired your Title,.
13. There is a lien or charge on your Title because of a Mortgage, judgment, tax, special assessment or public utilities account, or a charge by a condominium corporation
14. After the Policy Date, a Governmental Authority assesses supplemental real estate taxes not previously assessed against the Land for any period before the Policy Date.
15. There is a lien or charge on your Title because of a local improvement charge, as to that portion of the total amount of the charge which had accrued prior to the Policy Date
16. There are charges incurred for public utilities supplied to the Land prior to the Policy Date, except for final meter reading charges, and charges you agreed to pay.
17. The Land is unmarketable, which allows another person to refuse to perform a contract to purchase, lease or make a Mortgage loan because it violates a restriction, existing zoning by-law or existing structures or any part of them is located on land under the jurisdiction of a conservation authority or similar Governmental authority without approval.
18. Your Title is unmarketable, which allows another person to refuse to perform a contract to purchase lease or make a Mortgage loan.
19. There are mechanics', builders' or construction liens or legal hypothecs for construction on your Title, for service or material furnished before the Policy Date, unless you agreed to pay for the service or material.
20. Others have rights of possession under any applicable legislation dealing with family law.
21. There is a violation of the provisions of a provincial or territorial act which restricts the subdivision of land.
22. The Land is in violation of a subdivision or development agreement
23. The existence of work orders, unless you agree to be responsible for them.
24. You are forced by a Governmental Authority to remove or remedy your existing structures or any part of them, other than a boundary wall or fence, because any portion of your structures was built without obtaining a required building permit from the proper Governmental Authority office.
25. You are forced to remove or remedy your existing structures or any part of them other than a boundary wall or fence because a) The violate an existing zoning by-law; b) They encroach onto your neighbour's land c) they are located on land under the jurisdiction of a conservation authority or similar Governmental Authority without approval or d) there is an outstanding notice of violation or deficiency notice.
26. You are forced to remove or remedy your existing structures because the encroach onto an Easement.
27. Your existing improvements (or replacement or modification made to them after th Policy Date) including lawns, shrubbery or trees are damaged because of the future exercise of a right to use the surface of the Land for the extraction or development of minerals, water or any other substance, even if those rights are excepted or reserved from the description of the Land.
28. Your existing structures have been damaged because of the exercise of a right to maintain or use any Easement affecting the Land.
29. After the Policy Date, someone else builds a structure, other than a boundary wall or fence, which encroaches onto your Land.
30. Any adverse circumstance affecting the Land which would have been disclosed by a Local Authority Search of the Land at the Policy Date
31. Any incorrectness in a written statement received by you from a Governmental Authority, indicating that there are no defects relating to the Land's compliance with applicable building and zoning by-laws at the Policy Date.
32. The residence with the municipal address shown is not located on the Land at the Policy Date.
33. Any other defects, liens, charges or encumbrances on your Title.

The preceding article was reprinted in part from information provided by First Canadian Title, and the author does not warrant it's contents. You should consult your lawyer for information relating to your specific requirements.