is title insurance necessary for Ontario property purchases

[nivar]

the Ontario government currently grantee the property title, just wondering if the title insurance is necessary for purchase of the property in Ontario. I have paid $389 for Title Insurance, when i purchased my property last week. The lawyer advices me it was necessary, as it protects the Title and other interests. Because the property was under Land Title system (new system for registering properties); I assumed it would not be necessary for purchasing the Title Insurance.

If you are a lawyer or have good knowledge about this please advice me and other fellow investors regarding this.

thank you for your time.

tltr: is the title insurance advisable for property purchase in Ontario?

 

[housingrental]

Not a lawyer
Yes it is advisable

 

[nivar]

QUOTE (housingrental @ Jun 30 2010, 09:18 AM) Not a lawyer
Yes it is advisable

why?

is it because the insurance covers anything specific other then the title?
- title is insured by Ontario government; it would be redundant to take insurance on title again.


any lawyer here can shed some light on this matter?

thanks for your time.

 

[JoeRagona]

QUOTE (nivar @ Jul 5 2010, 11:08 AM) why?

is it because the insurance covers anything specific other then the title?
- title is insured by Ontario government; it would be redundant to take insurance on title again.


any lawyer here can shed some light on this matter?

thanks for your time.

also not a lawyer but it protects you from land encroachments which a survey used to be relevant for. It covers more than just this and from what I understand is necessary to close. Correct me if I am incorrect, but I don`t think you have a choice. Plus, why would you want to waive that coverage for future possibilities that may come up that were not detected during the home inspection?

For a few hundred dollars, inspection, insurance etc are necessary in this business.

 

[wealthyboomer]

Title insurance is just that — insurance. It`s a backup position which can underwrite any resulting losses, but it is not a substitute for the information a survey reveals. Nor is it a substitute for the warnings a survey can provide that something is wrong with the title, such as an encroaching structure or fence, or the fact that a neighbour owns part of the land that was supposedly part of the transaction.
Every agreement of purchase and sale should have attached to it a legible copy of an existing survey. If it`s not available, the listing agent hasn`t done his or her job.

Source: Bob Aaron a Toronto real estate lawyer

 

[nivar]

title insurance is not necessary for closing a property; in Ontario the Title, is insured for the property under the "Land Title Act" for something with similar name. I have closed property in 2005 with no title insurance. I know for fact you do not need title insurance to close property.

What does the "Tile insurance" form the private insurer cover that is not covers under the Ontario Title insurance?

thanks for the time.

 

[JoeRagona]

QUOTE (nivar @ Jul 12 2010, 12:50 PM) title insurance is not necessary for closing a property; in Ontario the Title, is insured for the property under the "Land Title Act" for something with similar name. I have closed property in 2005 with no title insurance. I know for fact you do not need title insurance to close property.

What does the "Tile insurance" form the private insurer cover that is not covers under the Ontario Title insurance?

thanks for the time.

Alright, I suppose on my lawyer`s `advice` it was necessary

. A $325 protection plan for a $200k asset works for me.

 

[nivar]

QUOTE (JoeRagona @ Jul 12 2010, 02:42 PM) Alright, I suppose on my lawyer`s `advice` it was necessary

. A $325 protection plan for a $200k asset works for me.

your property might have been under the old system. The "land registry" which does require the title insurance. The new system is called "Land Title" which is insured by the Ontario Government for land title.

Under the new Title system the lawyers do not require to do title search for past 40year in order to close the property; they just have to look at the Title at the closing date at the "Land Title".

Next time you might want to inquire why is necessary, they might have decent answer then, "$325 protection for 200k".

thanks for the time.

 

[kboughen]

QUOTE (nivar @ Jul 12 2010, 12:50 PM) title insurance is not necessary for closing a property;
Although Title Insurance may not be required by law, it may be a condition of financing from your Lender.