Lorne Shuman is Director of Legal Services at First Canadian Title. One of Lorne's jobs is to speak about the importance of consumer protection when it comes to real estate issues related to your title. Lorne provides some insight about a property’s title, and the protection that title insurance can afford homeowners:

What does "title" mean?
When you buy a home, you are buying the title to the property. It is sometimes referred to as a deed. Holding title means that you own the property and your lawyer registers you as the owner in the land registry system. Having "good title" to your property is important because it protects your investment so that you will be able to sell your property in the future or obtain financing, such as a mortgage, against your home, if needed.

How can title insurance help?
Title insurance remains one of the best ways to protect yourself from serious issues like property encroachments, unpaid liens, defects in title and real estate title fraud to name but a few things.

If a house is purchased without prior knowledge of issues like encroachments or title issues, and the homeowner experiences a loss related to one of the 39 covered title risks, a title insurance policy will cover the cost of resolving the issue, as well as covering the cost of accommodations while the homeowner is displaced from their home, including moving and storage costs.

In addition to the coverage provided for encroachments, title insurance provides survey and title fraud coverage, as well as other areas where a homeowner can incur substantial losses.

If real estate title fraud occurs, the onus is on the homeowner to prove the crime and it can be very costly, financially and emotionally, to restore title. For a one-time premium, title insurance is one effective and inexpensive way to ensure your property is protected. It covers all legal expenses related to restoring a title and protects you for as long as you own your home.