101 Series: Reasons to Buy Title Insurance for Your Vancouver Home
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Reasons to Buy Title Insurance for Your Vancouver Home
There are a lot of little details that you have to take into account when buying a home or condominium in the bustling metropolis of Vancouver.
One of these oft overlooked details is known as “Title Insurance.”
So, what is title insurance and why do you need it?
Title Insurance Explained
Title insurance protects you from encountering and being encumbered by a number of legal issues that can easily complicate your life and cause you to end up in a costly litigation situation.
Although you would like to believe that everything is being handled by professionals on your behalf, you shouldn’t have to concern yourself with any worry about what happens behind the scenes.
Although most home or condo purchases go through without a hitch, sadly to say this is not always the case. So, what kind of potential legal issues could you encounter if you don’t have title insurance to give you that extra protection?
Some of the potential issues you could encounter when you are buying a Vancouver property could include the following:
- Issues involving property taxes which are still outstanding
- Zoning issues
- Mistakes made by the property surveyor which is challenged by a bordering neighbour or business owner
- Other financial liens which might be attached against the property such as by a collection agency or other forms of judgements
- A fraudulent title
- Encroachment issues
So, as you can see from the above list which is not all inclusive, there are a variety of legal issues which can throw a wrench into buying your dream home.
Simply put, title insurance can provide you with a valuable form of insurance protection which can help you if you get caught in one of these types of legal entanglements.
Is Title Insurance Expensive?
That’s the beauty of title insurance. It is not all that expensive and it covers you for as long as you own your home. I suggest you do some comparison shopping as generally speaking the prices for the insurance range anywhere from around $150.00 to $350.00, but it really is well worth your while to have it.
You should also know that many lenders will require you have this insurance coverage before you can get approved on your mortgage anyway. Even if they don’t require that have you coverage, if have taken the time to purchase the insurance it will help smooth your way through the application and approval process
You can get title insurance directly through your lender as many of them offer a policy for their clients. Your other option is to get it either directly from your insurance company or through your insurance broker. Some policies are sold as a separate rider which you can buy along with your homeowner’s insurance policy.
However you buy it, I highly recommend you consider buying title insurance for that extra piece of mind and to protect yourself from a potentially costly legal lawsuit.
