When buying a home, it’s important to have all your bases covered. One important aspect of the process is title insurance. This type of insurance policy protects property owners and lenders against losses related to ownership and title issues. Whether you’re purchasing a new home or you’ve already closed on the deal, residential title insurance can offer valuable protection. In this blog, we’ll explore the benefits of getting title insurance before and after closing and explain how it works.

When to Purchase Residential Title Insurance

Residential title insurance is usually purchased when you first buy your home. However, it’s possible to purchase this type of insurance anytime after you’ve bought your home. Remember that title insurance policy for existing homeowners may differ slightly from those obtained at the time of purchase. It’s always recommended to seek guidance from a real estate lawyer in Ottawa to ensure you understand the benefits and limitations of title insurance.

Benefits of Getting Title Insurance Before Closing

Obtaining title insurance before closing can provide several benefits, including:

  1. Protecting against unknown title defects: Title insurance can cover any unknown title defects that may prevent you from having clear ownership of your property.
  2. Covering existing liens against the property: Your title insurance policy can cover any unpaid debts secured against the property by previous owners.
  3. Protecting against encroachment issues: Title insurance can provide coverage for any encroachment issues, such as a structure on your property that needs to be removed because it’s on your neighbour’s land.
  4. Avoiding legal complications: By obtaining title insurance before closing, you can avoid legal complications related to restoring your property’s title in the future.

Benefits of Getting Title Insurance After Closing

If you missed the opportunity to purchase title insurance before closing, don’t worry. You can still purchase it after closing. Some benefits of doing so include the following:

  1. Protection against unknown title defects: Just like getting title insurance before closing, obtaining it afterwards can protect against any unknown title defects.
  2. Protecting against encroachment issues: Title insurance can also provide coverage for encroachment issues that arise after closing.
  3. Avoiding legal complications: Getting title insurance after closing can still avoid future legal complications related to title issues.

What Does Title Insurance Not Cover?

It’s important to carefully review your title insurance policy to understand what it covers and what it doesn’t. Generally, title insurance policies don’t cover known title defects or environmental hazards like soil contamination. Additionally, zoning bylaw violations resulting from changes, renovations, or additions to your property that you’re responsible for creating may also not be covered. Always ask your real estate lawyer in Ottawa to review your policy to ensure you’re aware of any exclusions.

Do I Really Need Title Insurance?

While title insurance is not a requirement in Ontario, it’s strongly recommended. Consulting with a real estate lawyer in Ottawa, a title insurance company, or an insurance agent/broker can help you fully understand the type of protection title insurance can provide and determine if it’s the right choice for you.

If you have questions about residential title insurance or need assistance with real estate legal matters, don’t hesitate to contact Nirman’s Law. Our experienced team of lawyers can provide guidance and support throughout the process.

Disclaimer: This article is intended to provide general information regarding Real Estate Law and various legal services related to Real Estate. It is not intended as a substitute for consultation or advice from professional Real Estate Lawyers and should not be relied upon as legal advice. Nirman’s Law, its staff, and affiliates make no representations or warranties of any kind, express or implied, as to the accuracy, completeness or timeliness of the information provided. If legal advice is needed, consult a Real Estate Lawyer near you.

If you need more information about title insurance or on Ottawa real estate law, then don’t hesitate to reach out to Nirman’s Law for assistance. Nirman’s Law is Ottawa’s premier law firm for real estate matters, offering both traditional in-person legal services and cutting-edge virtual real estate services

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