Title insurance is a one-time fee insurance policy that protects you from certain losses related to title or legal ownership of property.
Title insurance may include coverage for:
- Identity theft
- Title fraud
- Incorrect property survey
- Non-permitted renovations
- Liens and judgements
- Unpaid property taxes or utilities from previous owners
Exact coverage and how long coverage last for will depend on specific policy that you purchase.
How to get coverage.
When you take the mortgage documents that we prepare for you, your down payment and closing cost payments to your notary or lawyer, they will present you with options based on your mortgage terms and amount.
Title insurance is required on all new mortgages or refinancing with Vancity. This includes porting (moving) and assuming a mortgage.
Real life examples.
Fraud and identity theft
Title insurance can help you defend your ownership against false claims. For example, if someone steals your identity and claims ownership in order to take out a mortgage or sell your home, title insurance can help you with legal fees that may arise.
Unknown issues at purchase
Title insurance can also protect you from certain actions taken by the previous owner that were undisclosed or unknown at the time of purchase. For example, if the previous owner made a renovation that’s not up to code, and you didn’t know, if the city then orders you to correct it, title insurance would protect you from those costs.
Strata and special levies
For those purchasing condos or apartments, title insurance can also cover things like special levies, also known as special assessments, if they were undisclosed or not disclosed properly at the time of purchase. An example of a special levy would be the fee for roof repairs to the building.
