Title insurance

Definition

A one-time policy, paid once at closing, that protects against problems tied to the property title: an error in a deed, an undisclosed servitude, an encroachment, non-compliant work discovered after the purchase, mortgage fraud. There are two kinds: the lender’s policy, often required by the lender and protecting it, and the owner’s policy, optional, which protects you, generally for as long as you own the property. The cost most often falls between $250 and $500 for an ordinary home. Example: after the purchase, the city reports that the shed encroaches on a municipal strip and requires it to be moved; an owner’s policy covers the cost, and sometimes the defence. Title insurance does not replace a current certificate of location or the notary’s title examination; some lenders do, however, accept it in place of a new certificate.