Always Buy Title Insurance For Your Properties

I discovered a long time ago that title insurance protects against more than title issues. Check out how I saved over $9,000 with on an investment property because of a cheap $300 title insurance policy.

 

Have you ever been burned with water bills or city work orders the seller should have taken care of?

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Paul Blacquiere

Founder and Editor at Spirepoint Wealth
Paul is an entrepreneur, investor, speaker, educator and publisher.Β He is founder and editor at Spirepoint Wealth, a financial education company dedicated to helping people improve their finances, create more cash flow and build long-term wealth.
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  • MB says:

    Hi Paul,

    Thanks for the video, cool.
    Actually myself, being an investor in Quebec, at one point many years ago
    every single property purchased had to be re surveyed, ouch, at 800-1200 per,
    so I found a work around and started buying title insurance ever since,
    and everyone is ok with it (lenders,lawyers etc.).

    Thanks again!

    Mike

    • Paul Blacquiere says:

      No problem Mike. I think that was the main reason title insurance became so popular, but it’s got alot of other side benefits too.

      Many people also don’t realize you can buy a policy at any time, not just when you’re purchasing a property. So if you have properties already and you forgot to buy policies, you can add them on.

      Paul

  • Diego says:

    hi Paul,
    the title deed insurance, is it purchased with my insurance company?
    or is it acquired when signing at notary’s office? i ask because my
    insurance broker just said that they didn’t offer that…

    many thanks in advance

    • Paul Blacquiere says:

      Hi Diego,

      In Ontario and other provinces, title insurance is available through your lawyer. In Quebec, it should be available through your notary (although I don’t buy in Quebec, so you will have to check).

      The title insurance companies promote their products direct to the professionals who close on real estate transactions. Usually lawyer will ask you if you want to buy title insurance, and it’s so cheap, I always recommend it.

      Give your notary a call and I’m sure they can answer any questions about it, including pricing.

      Paul

  • Janet says:

    Hi Paul,
    I was saddled with a whopping $6 water bill due to a clerical error. Apparently in BC any water bill left from the previous owner is taken care of through the legal paperwork, but this $6 was missed. I just paid it because I figured it would cost the lawyer more to try to rectify it, and didn’t know title insurance would take care of it. Thanks for the tip that title insurance covers more than just property line details. The latest property we bought (our first home with an income suite) had a very old survey certificate so we got title insurance rather than pay for a new survey. Thanks for the great webinar with Rev N You the other night.
    Janet πŸ™‚

    • Paul Blacquiere says:

      Hi Janet,

      In Ontario, it’s also possible for water arrears to be handled at closing. However, often what happens is that lawyers recommend a title insurance policy instead of trying to obtain a water clearance certificate from the city, mainly because it’s faster and avoids the extra cost of a certificate.

      Title insurance is great to buy for every closing, but there are certain very specific situations where it will NOT cover water arrears (ask me how I know that πŸ™‚ It always best to read the policy if any problems come up, because it just *might* be covered.

      Anyways, good to hear your bill wasn’t so small, and I’m glad you enjoyed the webinar.

      Paul

  • Gil Hewer says:

    Another arrow in my quiver. Thanks Paul. Kind of reminds me of playng Monopoly where it’s best to spend a few dollars as a safeguard or insurance against paying out a whole lot later when the inevitable problems ariise, -and they will. We just don’t know when or where. Thanks for the sound advice.

    Gil Hewer

    • Paul Blacquiere says:

      You’re welcome Gil. I was fortunate I learned this lesson the easy way — I had already purchased title insurance, and was surprised to discover it paid for my claims. Not everyone is that lucky…

      Paul

  • David Ducharme says:

    Great video, Paul. I don’t think that many people understand exactly what Title Insurance covers. I sure didn’t.

    • Paul Blacquiere says:

      Hi David, I’m glad you enjoyed it.

      Title insurance protects the owner against defects in the title of the property, which could prevent free and clear ownership.

      For example, unregistered encroachments or easements, rights of way, unpaid liens, or zoning non-compliance.

      It can also cover non conventional things, such fraud or forgery, improper renovations for which there was no building permit, unregistered city work orders, etc.

      However, keep in mind that all title insurance policies are *not* created equal (as with any insurance policy). When purchasing a property, ask your lawyer if you can see a copy of the policy beforehand.

      If they don’t provide one, just make sure you buy it and then read the policy for exactly what is covered and what is not, and under what circumstances.

      I have used title insurance policies to save me many thousands of dollars, but I’ve also had situations where my claim was denied. So it’s always best to read the policy so you know what is covered.

      I hope this clarifies things

      Paul

  • Diane says:

    thanks, Paul, very usefull

  • David Funk says:

    Great news! had no idea on this and I understand it can be added to your other properties?
    in other words all your properties will be covered under one title insurance?

    • Paul Blacquiere says:

      Yes, you can add it to existing properties. Just contact your lawyer and ask to have it done. It will require one policy per property, not one policy for all properties.

      Paul


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