Title Insurance in Ontario

by nilayertemur February 17, 2014 Presentation 0 2156

Title insurance in Ontario is relatively new, growing quickly. With owner policies, title coverage includes property value along with equity.

Consumer Acceptance: High awareness about insurance in general
Straightforward claim procedures: Assuming the defect falls within policy coverage, recovery of losses is easy
Scope of Coverage: Not limited to title defect coverage’s, also insures over known, already examined defects and risks
Existing Surveys: Makes financial sense to have it, new surveys might reveal unforeseen conditions and through title insurance these issues are dealt with easier than surveys.
Value Added Service: Realtors like it and favor it for its ability to fasten closing process.
Lenders take comfort in the value of title insurance

Duty to indemnify: actual loss occurred
Duty to defend: legal expenses associated with a claim
Title coverage issues should be referred to legal experts
Separate policies exist for residential and commercial
Title insurers may have policies for lenders and owners
Any title insurance should be carefully reviewed for inclusions, exclusions, etc…

Not properly signed, sealed and delivered documents
Defective registry on title
Fraud or forgery affecting title
Inability to access property
Title is unmarketable for a number of reasons
By-law violations: deck, patio, etc issues
Contravention in development of property
Construction liens discovered on title
Other individuals’ claiming rights over a property as a result of previous contracts, etc
A lien that has a priority on title
Certain restrictive covenants that affect the use of land
Someone else owns an interest in title
Issues around title insurance lack interpretation in Canadian Courts

Survey: Elimination of survey can represent significant time and money savings
Title problems at listing: Deck example is a good one. The seller is in a position to assure any potential buyer…
Marketing incentive: Sellers’ commitment translates into cost savings at the point of negotiations…
Title problems at closing: A minor encroachment, a final inspection of a new addition is not complete but through title insurance the closing can be done on time

A lawyer has to advise the client that title insurance is not mandatory and not the only option
A lawyer can not receive any kick back from a title insurer
A lawyer has to insure the client that no compensation is being furnished
A lawyer shall disclose the relationship between the profession, the Society and Lawyers’ Professional Indemnity Company