Gotta love the English language: one word can mean so many things! Take “title.” It could be a distinction, refer to the name of a book, or a championship prize. It’s also is the term we use to convey property ownership. (Nice segue, eh?)

As a buyer you want title that is appropriate for your purposes and can be easily conveyed to someone else when you decide to sell.

One of the key things your lawyer will do before closing is search the public records to review the ownership history of the property you want to buy and any previous transactions related to it. They will be looking for any existing mortgages, liens, outstanding taxes owed, utility charges, etc. At closing the property should be free of such charges.

Great, so why is your lawyer recommending you purchase Title Insurance then? Well, title insurance protects purchasers and/or lenders against loss or damage that could result if a claim is made that is covered under the terms of the policy.

Types of risk that are usually covered include:

·      Survey irregularities

·      Forced removal of existing structures

·      Claims due to fraud, forgery or duress

·      Unregistered easements and rights of way

·      Work orders

·      Zoning issues

·      Set-back non-compliance or deficiencies, etc.

The cost for your lawyer to check deeply into all of these things would cost more than the title insurance does, so to protect you, the insurance is a good route to take. Yes, seriously, your lawyer is trying to save you money. Whatever you think about lawyers, this is one thing on the “pro” side of the list.

For a risk to be covered it has to have existed as of the date of the policy which is why you buy it in conjunction with closing the deal. The insured purchaser is protected against actual loss or damage sustained up to the amount of the policy which is based on the purchase price. Title insurance remains in effect as long as the insured purchaser has title to the land. And the best part: the premium for title insurance is paid only once.

As with any type of insurance policy, certain types of risks might not be covered. Be sure to talk to your lawyer about what is, and what is not covered by your policy. Title insurance can help ensure that a closing is not delayed due to defects in title, and if an issue arises, the insurance covers the legal fees and expenses associated with defending the title and pays in the event of loss.

All good things there, right? Wish I had a fancy-pants title to sign off with! Champion of the… hmmm.