WHAT IS TITLE INSURANCE & DO YOU NEED IT? Author : Natalya HannaPublished on : August 1, 2020
It is well known that the purchase of a property is a significant investment. Real estate transactions rely on the accuracy of the Land Title Office. However, sometimes the actual title can be different from what is registered at the Land Title Office. For example, there could be an interest in the property that was unknown at the time of the transaction. In this kind of situation, there can be significant costs and potentially large losses. This is where Title Insurance comes in.
Title Insurance offers coverage to Lenders or Buyers in the event of a loss in purchasing a property or gaining interest in a property, resulting from different matters. It also could cover potential unknown defects that may impact your interest in the property. Examples of the latter might be defective or inadequate surveys, a construction done without proper permits, building bylaw or zoning infractions, or real property tax arrears of the seller – all of which could impact the value of the property significantly.
Do you need Title Insurance when you buy property in British Columbia?
While it is popular in other places, such as in the United States, Property Title Insurance in British Columbia has been less popular. The BC Land Title registration system has generally been considered one of the best in North America. In most cases, the BC Land Title Registration Office guarantees the title to a property.
In the case of mortgage insurance, the bank undertakes the risk in most cases. Your lender might require you to purchase a policy as a condition for funding, but such insurance would only protect your lender.
At Uptown Notaries, we offer complimentary owner’s policies when lenders policy is a requirement, and when your purchase price is under 1 million dollars.
Like any insurance that you are not required to purchase, the decision should be made by the purchaser, and in the case of title insurance, it would be highly recommended to make that decision after giving it good thought. How much risk are you willing to take? Is the history of the property very clear and straightforward? Could there be issues unknown or information unavailable to you?
How to purchase title insurance?
At Uptown Notaries we can take care of title insurance for you. It is a one-time fee, there is no renewal or annual premium. It allows you to sleep at night knowing that you’re covered against these hidden issues.