Over the years, owning a home has become the primary goal for most inhabitants in Canada. But, it’s undeniable that the overall home buying process is quite a stressful experience, especially when you are a first-time buyer and unaware of the procedure and terms, such as title insurance. It plays a significant role in speeding up the entire purchasing process, especially the closing, while allowing you peace of mind by safeguarding your investment.
Wonder how? Give a few minutes to read this blog! It will definitely help you have basic info about title insurance and identify the essentiality of obtaining it during a home purchase to safeguard your property. Let’s get started!
Why Is Obtaining Title Insurance So Important During Home Purchase?
Title insurance can prove to be a worthy investment for property buyers to maintain the legal rights for added protection, leading to peace of mind. It allows you an opportunity to stay secure against the conflicts that arise during the closing process of home-buying for different reasons, including:
- Unpaid liens, such as tax liens, child support liens, or mortgage liens
- Disparities like bankruptcies filled by previous owners or abstract of judgment
Having such liens against the property you buy can owe you a debt to the party having the right to possess it, like a company, person or even a government body, until you pay the debt. But, you can avoid the hassle of paying for the liens and clearing the property defects with the title insurance at the time of closing, the final step of the home-buying process. The title monitoring company you work with for home purchases conducts a title search to ensure property defects or legal bindings, such as easements, leases and other restrictions, before issuing insurance so the new buyer doesn’t have to face any hassle!
Based on the findings, the title monitoring company creates a report after completing the title search. Still, even after an in-depth title search, there can be hidden issues on the title, like undisclosed heirs, forgotten land mineral rights or unknown wills of the past property owner, revealed in the future. In that case, title insurance protects you and your home from those defects against such unforeseen issues and fraudulent claims.
Yet, it may not be mandatory, but purchasing title insurance can be a sensible investment! It ensures your home title is recorded and reported, safeguarding it. And, the best part is that, unlike other insurances, you don’t have to pay monthly premiums for title insurance. You need to pay just once for it during the home purchase at the time of the closing process.
However, the charges for title insurance can be different for every deal, depending on the location and the property value, although it will be low compared to the amount you may lose in case of title disputes eventually.
Canada Title Monitoring- Best Place to Purchase Title Insurance
We hope you understand why obtaining title insurance is important for home purchases to safeguard your investment and have peace of mind. Now, if you are looking to purchase one before buying a new home, we suggest counting on Canada Title Monitoring. Here, we offer title insurance to property buyers for added ownership protection. Also, our experts can help you with property valuation, title monitoring and changes using Title Tracker based on SAAS software.