When making a major purchase such as buying a home, many people want to take steps to protect their investment. One of the most common ways to protect a purchase of residential real estate is by purchasing insurance. Title insurance is one type of insurance that is less understood but can be very advantageous for Alberta homeowners.
Title insurance typically costs between $300 and $400 dollars in most cities, but its benefits can be worth thousands should certain conflicts arise later down the line. Title insurance can protect residential real estate owners from a variety of scenarios. These include a home encroaching on a neighbour's property, property tax defaults from previous owners and title fraud.
Most Alberta homeowners have this kind of insurance, but those who decide not to get this coverage or forget they hold it could face serious consequences should title issues emerge. Currently, the real estate market is trending upward in terms of prices and interest rates. This makes it even more important for homeowners to protect their increasingly expensive investment.
Title insurance can prevent stresses caused by previous owners, neighbours or fraudsters. It remains in place even if a home is transferred to a spouse or child, though it is important to inform the new property owner of the policy in case something goes wrong. Cost, legal considerations and seller compensation can vary from province to province. Speaking to an experienced real estate lawyer in Alberta can help those buying residential real estate understand their options for title insurance and the legalities associated with their policy.
Source: The Globe and Mail, "This insurance can save home owners from budget-busting expenses", Rob Carrick, March 29, 2018