All About Title Insurance – Here is some of the Information from Yesterday’s Informative Seminar at

What is a title insurance policy?

A title insurance policy is a policy of indemnity that insures against loss or damage arising from a title defect as well as many forms of title fraud. In Canada,

Stewart Title’s Gold Policies (Owner & Lender) go further they also cover matters relating to surveys and the legal use of the property.

What is covered by a title insurance policy?

Title Protection

First and foremost, a solicitor’s opinion and a title insurance policy both assure that, as of the closing date, the purchaser has acquired good and marketable title and that the mortgagee(s) have a good and valid charge thereon in the priority stated in the policy (e.g. 1st, 2nd, 3rd mortgage etc.). This coverage addresses defects or restrictions in the chain of title, as well as other potential title complications such as Sheriff’s executions, construction liens or tax liens.

Off-Title Protection

Just like a lawyer’s opinion, a typical title insurance policy covers losses that relate to the legal use of the property. In the context of off-title matters, most insurers will provide such coverage while waiving the requirement for a search with a relevant authority. Matters that are covered by the policy, often without an inquiry, include the following: · Executions against former owners

· Zoning non-compliance

· Work orders

· Open Building Permits

· Lack of Required Building Permits (if the Municipality is requiring the owner to remedy a structure that did not have a permit and a permit was required when the structure was erected)

· Tax arrears

· Water arrears to the extent that they form a lien on the property

· Subdivision/development agreement compliance

· Lack of corporate existence for corporate owners

· Condominium common expense arrears

· Unregistered hydro easements

Continuation of Coverage

Like a solicitor’s opinion, protection for covered risks under a title insurance policy continues for as long as the insured retains their interest in the property. However, a title insurance policy also expressly extends to situations where the title is transferred for nominal consideration to spouses or children, heirs under a will, beneficiaries under a trust or successor trustees.

Further Protection

In addition to mirroring the protections provided by a solicitor’s opinion, a title insurance policy can go beyond the limitations of an opinion and provide additional coverage:

· Survey Coverage

· Fraud, forgery, false impersonation

· Errors in public records

· No fault recovery/human errors

· Permanence & security (death, disbarment, retirement)

· Duty to defend

· Known defects

· Other unknown defects

The Title Insurance Process

Once the Purchaser makes the election to use title insurance the transaction proceeds as normal, save and except that the lawyer may not perform some of the off-title searches not required by the insurer. The lawyer arranges the policy prior to closing and will review the policy – or at the very least the relevant exceptions set out in the schedules – with the client. After closing the lawyer remits the necessary premium and his/her report to the insurer, who in turn forwards the original policy, usually back to the lawyer.