Why get Title Insurance
Buying a new home and wondering about Title Insurance? It can be used for several purposes that we will review in this article.
It may be used to protect against:
1.For mortgage fraud – mortgage fraud refers to an intentional misstatement, misrepresentation, or omission of information relied upon by an underwriter or lender to fund, purchase, or insure a loan secured by real property.
2.For coverage for defects with title – refers to any potential threat to a current owner’s full right or claim to sell a property.
Gap Coverage is a way that allows lawyers to close a deal quickly before they have registration at land titles
When it comes to title defects having insurance means there can be coverage to help pay to fix a problem with the property that an RPR would have shown.
Common issues that it can be used for are fences being built over the property line, encroachment issues, lack of development permits, setback issues, etc.
Title issues is an alternative to a real property report in terms of closing a purchase and sale. But clients should remember that it is insurance just like any other form of insurance and it does have exclusions too
Some lenders require a buyer to have title insurance regardless of whether they get an RPR
FCT is a provider. Read more about it here
Contact us to get more information!