Title Insurance

When you purchase a property, your ownership is legally referred to as title.  Property titles list any registered mortgages and liens on the property.  They describe easements, encroachments and other important details. 

Title insurance protects the lender and the homeowner against risks related to the property’s title or ownership, such as fraud or survey errors and anything that prevents you from having clear ownership of your property.  Title insurance is usually purchased when you first buy your home and you will only make one premium payment. 


Do I need Title Insurance?

If you are purchasing or refinancing a home, discuss title insurance with your lawyer or notary.  They can arrange the home owner’s policy for you. Having a policy in place will bring peace of mind knowing that if issues arise due to fraud, encroachments, or zoning non-compliance etc. the insurer will work to rectify the problem.

Also many homebuyers are turning to title insurance as a more affordable option to land surveys. And sometimes it can be difficult to get a land survey in time for closing. But be sure to know what you are purchasing.

Often banks and financial institutions will require borrowers to obtain title insurance for their own protection.  Lender’s title insurance is normally written in the amount of the mortgage and protects the lending institution from losses resulting from title defects.

Because lender’s insurance expires when the mortgage is repaid, you may benefit from the second form of title insurance known as an owner’s title policy. It usually is written for the amount of the purchase price of the home. This protection starts the day of the closing and lasts as long as you or your heirs retain an interest in the property.

By purchasing owner’s and lender’s protection simultaneously, substantial savings in title insurance premiums can be realized.

We know that buying a home can be stressful, contact your Royal LePage Kelowna REALTOR®, we will guide you through the process from start to finish.