Title Insurance
Quick Definition
Insurance protecting against defects in a property's title or ownership history.
Full Explanation
Title insurance is a one-time premium insurance policy that protects homebuyers (and lenders) against losses related to defects in a property's title. This includes issues like outstanding liens, survey errors, unpaid property taxes, fraud, encroachments, and title gaps. In Canada, most mortgage lenders require a lender's title insurance policy. A separate owner's title insurance policy is recommended for buyers. Premiums typically range from $150–$400 for residential properties (one-time cost, covers the life of ownership). Title insurance is arranged through a real estate lawyer and has largely replaced the need for a new survey.
Related Terms
Closing Costs
Fees and expenses paid at the completion of a real estate transaction, typically 1.5–4% of purchase price.
Mortgage
A secured loan used to purchase real estate, with the property as collateral.
Real Estate Lawyer
A legal professional who manages title transfer, mortgage registration, and closing procedures.
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