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Title InsuranceWhat is title insurance? Title insurance insures the owner against any conflicts in the
Real Property Report.
It does not resolve the conflict. For example: if you had a Real Property Report done on your property and you discovered that your fence was encroaching on his property the Insurance would cover the costs of rectifying the issue, it does not require the problem to be fixed prior to closing of the sale.
If you need a quick closing, title insurance is not a bad option, but it does not ensure compliance to bylaws and/or encroachments. You will have to resolve the conflicts after the purchase has gone through.
Another thing that you have to bear in mind when opting for Title Insurance as opposed to a Real Property Report, is that Title insurance does not provide unlimited coverage. Make sure you read your contract thoroughly. Find out exactly what is and what isn’t covered. You may need additional insurance.
In some cases your mortgage provider may request that you have both title insurance and a Real Property Report before advancing your mortgage funds.
Your lawyer will usually request Title Insurance before you go to sign the mortgage documents at his office. The cost of the Title Insurance will be added to your lawyer’s bill.
Read a little more about
the Real Property Report here.
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