What Is Title Insurance?

General Tim Hill, MBA 11 Dec

When you own real estate property you hold the “title” to that property. The title states your ownership. When purchasing a property, your lawyer/notary registers your transfer of title in the public records of the area in which you live.

With a title insurance policy from FCT you will have peace of mind knowing you are protecting the ownership to one of your biggest investments, your home.


What is title insurance?

Title insurance protects you, the homeowner, against losses associated with title fraud and a variety of other property issues. Title insurance is unlike traditional insurance — it does not just cover things that may happen in the future (e.g. title fraud), but also, property defects that have already occurred in the past, prior to purchasing your home.


What is covered by an FCT Homeowner Policy?

Below are the main areas of coverage contained in the Homeowner Policy: Fraud — a person fraudulently transfers your property without your knowledge or consent.
Forgery — someone forges your signature on a registered document, which enables them to sell or mortgage your property.
Encroachments — a structure built by a previous owner sits outside the property’s boundaries or if a neighbour builds a structure that is partially on your property after you purchase your policy.
Lack of building permits — if a previous owner completed work to your property without the required building permits, such as an addition or improvement, you could be forced by your municipality to remove or remedy the structure.
Duty to defend — FCT will pay for the legal fees and costs associated with protecting and restoring your title as a result of a covered title risk.

Taken from this document from First Canadian Title