For a one-time title insurance premium, title insurance company will insure future losses due to defects of title or other events affecting the property that happened before the policy was issued. Title insurance can insure against loss to either the owner of the property, the mortgage lender, or both.
Title insurance is acceptable by most major banks and financial institutions in Canada. Title insurance is not mandatory in all residential real estate transactions. However, some banks or financial institutions may require title insurance as one of the conditions for funding. In some cases, title insurance can be used in lieu of Real Property Report or Estoppel Certificate. Some major banks also require title insurance in cases where a Power of Attorney is used for the purchase of residential properties or if the value of the purchase price is over a certain amount as specified by the banks and financial institutions.
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Note: All postings in this blog are for information only, please consult a lawyer for proper legal advice.