Safe and Sound - Insuring the Title to Your Property
Buying a property is one of the biggest commitments you’ll ever make, so it’s worth ensuring your property contract is water-tight.
Nothing makes home ownership more real than having your name signed and sealed on the all-important Certificate of Title. But have you ever thought that the title on your property could be up for dispute?
Unfortunately problems surface all too often after the purchase of a property has been concluded that relate to pre-existing title or property defects that are unknown to the buyer at the time of purchase.
For example, contests to a boundary line.
One of the best ways to safeguard against future title problems is through investing in title insurance.
Working alongside the checks and balances made by your conveyancer or solicitor, title insurance covers you from costs should there be disputes over the title of your property.
How does it work?
Unlike traditional insurance policies that protect you from unforeseen future events, title insurance seeks to eliminate risks and prevent losses on your title from incidents that have happened in the past.
Title insurance companies conduct an in-depth title search to review all the issues affecting the state of your property. That means going through every aspect of your title with a fine-tooth comb – from tax information to unsatisfied liens (security interest) as well as outside claims against your property. Should any problems arise, it is also the title insurance company’s obligation to provide you with legal support.
What are you covered for?
Depending on the terms and conditions of your insurance policy, you may be protected against any defects in your title, easements for mortgages, encumbrances, and monetary loss incurred from property damage.
When calculating the cost of insurance the amount to cover your property is usually based on the value of your home and the amount of your mortgage. If you’re not familiar with the steps to take out title insurance, speak with your broker – they’ll typically have an association with a title insurance company or alternatively be able to point you in the right direction to find one.
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