Have you ever wondered what title insurance is and whether you need really need it? Here is a quick summary on what title insurance is in the context of real estate.


Before we dig into the logistics of title insurance, what exactly does the word ‘title’ refer to?


Title is a legal term, which refers to who has legal ownership of a property. When purchasing a property, your title will reflect your name as the owner of the property as well as other details such as the details of the home.


What is it?


Your decision to purchase/refinance a home is one of the most significant decisions in your life.


You and the lender will want to know that the title of the property is yours and there aren’t any claims, liens, or encumbrances on your property that you’re not aware of. Title insurance protects parties in a transaction and provides certain protection from defects on the property and various other risks, protecting either you and the lender or one of you. Some examples of title defects are, errors in public records and undiscovered encumbrances.


Title insurance is a one-time fee and paid at closing. Fees are generally reasonable, a few hundred dollars and depend on the transaction you are entering into.

If you still have questions about title insurance, we recommend that you discuss this decision with your lawyer as they will be able to provide advice that is specific to you and your needs.


Call us at 905 787 2296 or email us at info@legaldirect.ca if you have further questions.