When purchasing real estate in Canada, title insurance is a critical aspect of protecting your investment. Many buyers often wonder, “What is title insurance?” and why it’s important. In simple terms, it safeguards property owners and lenders against losses related to defects in the property’s title. These defects could include forgery, encroachments, fraud, or errors in public records.
Although it’s not legally required in most provinces, you might ask, “Is title insurance mandatory in Ontario?” In Ontario, while not mandatory, title insurance is highly recommended due to its role in ensuring peace of mind for property transactions.
If you’re wondering where to buy title insurance, this guide will walk you through the top providers in Canada and offer tips to help you choose the best option.
Understanding Title Insurance
Before diving into the providers, it’s essential to revisit what is title insurance and its key benefits:
- Protection Against Fraud: Title insurance shields you from fraudulent activities such as forged signatures on property documents.
- Coverage for Encroachments: It ensures you won’t incur financial losses due to property line disputes or encroachments.
- Error Correction: It protects you from mistakes in public records or legal documents related to the property.
These benefits make title insurance a worthwhile investment for homeowners and lenders alike.
Top Title Insurance Providers in Canada
If you’re deciding where to buy title insurance, Canada has several reputable companies offering comprehensive policies. Below are the top providers:
1. FCT (First Canadian Title)
FCT is a leading title insurance provider in Canada, offering both residential and commercial title insurance policies. Known for their comprehensive coverage and excellent customer service, they provide protection against:
- Title fraud
- Survey errors
- Building permit issues
2. Stewart Title
Stewart Title is another top choice for homeowners looking for reliable title insurance. They are known for:
- No deductible policies
- Flexible coverage options
- Exceptional fraud protection
3. Chicago Title Insurance Company
Chicago Title has a global reputation for offering robust protection. They focus on:
- Fraud and forgery
- Zoning issues
- Encroachments
4. TitlePLUS
Offered by the Lawyers’ Professional Indemnity Company (LawPRO), TitlePLUS provides additional legal services coverage, making it a favorite among legal professionals.
5. Aviva Title Insurance
A trusted name in insurance, Aviva also provides title insurance with extensive coverage, including protection against liens and unknown title defects.
Factors to Consider When Choosing Title Insurance
When deciding where to buy title insurance, consider the following tips:
1. Compare Coverage Options
Not all policies are created equal. Some may cover fraud and encroachments, while others provide additional protection against zoning violations or building permit issues.
2. Review Costs
The cost of title insurance varies based on the provider and the value of your property. Typically, it is a one-time fee paid at the time of purchase. Comparing quotes from multiple providers can help you save money.
3. Understand Policy Exclusions
Read the fine print carefully. Certain policies might exclude specific risks, such as environmental hazards or known property defects.
4. Seek Recommendations
Ask your lawyer, real estate agent, or lender for suggestions on where to buy title insurance. Their expertise can help you find a trusted provider.
5. Check Provider Reputation
Research customer reviews and ratings for each provider. A company’s reputation for handling claims efficiently is a good indicator of their reliability.
Is Title Insurance Mandatory in Ontario?
Although title insurance is not mandatory in Ontario, it is widely used in real estate transactions. Ontario’s real estate market is prone to risks like fraud, errors in public records, and unpermitted renovations. Title insurance provides a safety net against these potential issues. For peace of mind, many buyers and lenders in Ontario consider it an essential part of the purchasing process.
Tips for Buying Title Insurance
- Bundle With Mortgage Services: Some lenders bundle title insurance with their mortgage services. This can be a convenient and cost-effective option.
- Ask for Discounts: Providers may offer discounts for multiple properties or bundled insurance policies.
- Update Your Policy: If significant changes occur, such as renovations or property use changes, inform your insurer to ensure continued coverage.
- Consult a Lawyer: Legal advice can help clarify any doubts about policy terms and conditions.
Conclusion
Deciding where to buy title insurance in Canada doesn’t have to be overwhelming. By understanding what is title insurance, comparing top providers, and evaluating coverage options, you can make an informed decision. While title insurance is not mandatory in most cases, particularly in Ontario, its benefits make it a wise choice for protecting your property investment.
Whether you choose FCT, Stewart Title, Chicago Title, TitlePLUS, or Aviva, ensure the policy aligns with your specific needs. With the right title insurance policy, you can confidently move forward in your real estate journey, knowing your investment is protected.
