Title Insurance a key component in your transaction
- Known title defects (that were revealed to you before you purchased your property);
- Environmental hazards (e.g. soil contamination), any concerns about soil or contamination or toxic pollutants on the property should be addressed by obtaining an environmental audit;
- Native land claims;
- Problems that would only be discovered by a new survey or inspection of your property (e.g. the property is smaller than originally thought);
- Matters that are not listed in public records (e.g. unrecorded liens and encroachments);
- Zoning bylaw violations from changes,renovations or additions to your property or land that you are responsible for creating.Damages due to flooding, fire or sewer backup;General wear and tear of your home (e.g.replacing old windows, a leaky roof, or an old furnace); Theft(e.g. a burglar breaks into your home and steals your television); and Other losses or damages due to non-title related issues;
- Residential Tenancies Act, 2006 (Ontario) – Landlord liability for illegal rent increases or other claims arising from residential tenancy legislation are not matters covered by title insurance;
- Fire Retrofit Issues – In the cases of tenanted and multi-unit properties, while title insurance does cover the usual work orders and zoning related matters, it does not cover fire retrofit issues such as the sufficiency of smoke alarms or fire barriers, unless they form work orders or are zoning deficiencies which would have been revealed by a regular building and zoning search conducted prior to closing;
- Water Potability and Quantity where the property is serviced by a well, a water potability certificate (preferably more than one) and a well driller’s certificate (if available) should be obtained;
- Title insurance covers land, not chattels. When significant chattels are included in a purchase or when a transaction involves the likes of a mobile home, consideration should be given to PPSA search and registration;
- Underground Fuel Oil Tanks, the Technical Safety and Standards Association should be contacted to conduct an inspection; and
- Perhaps most importantly: Use of the Property, and even more specifically Future Use, is not covered.
If you intend to change or alter the existing use of the property in any way, you must bring those intentions to your lawyer’s attention as soon as possible, to ensure that the correct searches are conducted. Your lawyer, and your Title Insurance Company, cannot provide you with protection against an issue that you have not explained to them.