Title Insurance - Buyers coverage for when things go wrong

Despite everyones best efforts in a Real Estate transaction, issues can arise that may not have been evident during the Purchasing process.  We highly recommend that every Buyer consider purchasing Title Insurance coverage through their Lawyer while completing their transaction.

 “Title” refers to your legal ownership of a property, as registered in the government’s land registration system. Title Insurance covers losses related to the property’s title or ownership, including:

  • Title issues that prevent you from having clear ownership of the property.
  • Existing liens against the title, for example if the previous owner had unpaid property taxes.
  • Issues related to encroachment on someone else’s property, for example, if a structure had to be removed because it is partially on your neighbour’s property.
  • Errors in surveys and public records.
  • Title fraud.
  • Any other title-related issues that could affect your ability to sell, mortgage or lease your home in the future.

Title Insurance can also come in handy if title transfer to ­­your name can’t occur on the date your deal is supposed to close.  The “gap” coverage in Title Insurance will allow your lawyer to close the sale of the property even if registration is delayed.

Some title insurance also includes coverage in case your lawyer makes an error while handling the real estate transaction.  Although title insurance is a one-time fee, the coverage lasts as long as you own the property.

But remember Title Insurance typically won’t cover:

  • Title defects you were aware of before you purchased the property.
  • Environmental hazards.
  • Problems that would only be discovered by a new survey or inspection of your property.
  • Matters not listed in public records, like unrecorded liens or encroachments against the property.
  • Zoning bylaw violations from changes, renovations or additions that you created yourself.

It is important to know that all lawyers practicing real estate law in Ontario are required to carry professional liability insurance. Your lawyer’s professional liability insurance may provide coverage for title­ related issues that relate to the services your lawyer provides in the real estate transaction. 

A lawyer will provide you legal advice in order to help you make an informed decision about title insurance and other aspects of the transaction. Since title insurance policies contain a lot of legal terminology, make sure you ask your lawyer or title insurance company questions about anything that you do not understand.

TitleInsuranceCanadaBrochure.png

Title insurance companies and insurance agents/brokers should meet best practice standards that include:

  • Providing information to clients on all available options.
  • Supply full details for all matters related to the title insurance transaction.
  • Ensure that the recommended product meets the client’s needs.

Keep in mind that you are the customer and can choose any one of the title insurance companies that you think would best meet your needs.

Learn more about Title Insurance at the Financial Services Council of Ontario or the Insurance Bureau of Canada websites.

 

Need more information, or want to discuss your Real Estate needs?  Contact us anytime - we are here to help!

The Devil is in the Details

Toronto Star Headlines - Thursday August 17th.

Home-Details.jpg

You’ll need six figures to buy almost any GTA home, $200,000 a year for the average detached Toronto house, report says. As the cost of Toronto-area housing rises, so do the financing challenges for young adults. Read More

This article is based upon data in "The Report" that assumes that all housing is purchased with 20% down.  Most of the homes we sell are well over 1 million dollars.  Most, if not all, of our purchasers carry with them equity from their last house so their down payment typically is nowhere near 20%.  On average it is considerably more. So don't be frightened by statistics that are somewhat deceiving! The sky is not falling in.

Remember that if you have one foot in a bucket of boiling water and the other foot in a bucket of ice cubes then someone can write a Report indicating that statistically you are a perfectly normal temperature.  We are also looking forward to a brisk "normal" Fall Real Estate market, statistically speaking!

Downsizer's Paradise in Markham

A common request we hear from Clients is to find them a suitable place to 'downsize' from their family home, to something a little more manageable.  Often, a condo is at the top of the list - but many people find the size limitations just too dramatic, and they feel they aren't fully ready for an apartment-sized condo unit just yet.  Swan Lake has been a go-to area for many empty nesters, but if you still want a bit more space for kids, or you aren't quite at the retirement-age, you may want something a little different.    If this sounds like you, you need to take a look at 22 Hepworth Way, in Markham village.   This is a 1500 sq.ft. townhome, backing onto a ravine, that is part of a small 16-unit condominium corporation.  This is a 3 bedroom home, with gorgeous views, that you don't have to worry about outside maintenance like lawn care or snow removal!  Perfect for those who may want to lock-and-leave over the winter, or simply want a little more space than what a typical condo may offer.

Call us to book a private tour of this lovely property and complex, and see what a great option this can be, right in town!

You can see more by visiting www.22HepworthWay.com

Did you sell your residence in 2016? The CRA wants to know.

If you sold your principal residence in 2016, you need to be aware of new reporting requirements on this years Tax Returns.  On October 3rd, 2016, the CRA changed the reporting requirements when selling your home.  The intention of this new requirement, is to better track home-sales for capital gains purposes, especially when dealing with non-resident sales, home 'flippers' and renovators, tracking unreported GST/HST on new home sales, and unreported worldwide income.

From the CRA:

"When you sell your principal residence or when you are considered to have sold it, usually you do not have to report the sale on your income tax and benefit return and you do not have to pay tax on any gain from the sale. This is the case if you are eligible for the full income tax exemption (principal residence exemption) because the property was your principal residence for every year you owned it.

Starting with the 2016 tax year, generally due by late April 2017, you will be required to report basic information (date of acquisition, proceeds of disposition and description of the property) on your income tax and benefit return when you sell your principal residence to claim the full principal residence exemption."

Make sure you are informed when filing this years taxes - more details can be found on the Canada Revenue Agency website.