Everyone who has purchased a home knows how quickly closing costs can add up. Land transfer taxes, home inspection fees, legal fees, moving companies… the last thing a buyer wants to hear is "and here’s some additional insurance you should buy". However, in the case of title insurance, it’s a suggestion you should certainly consider very seriously. Purchasing this insurance now could save you a lot of money and stress in the future.
- Encroachments – when any structure, such as a fence or shed, is fully or partially built on your neighbour’s property rather than your own;
- Liens against the property – these usually occur when the previous owner failed to pay utility bills or property taxes;
- Errors in the property’s survey or the public record;
- Defects with your title that can prevent you from having clear ownership of the property;
- Title fraud – when someone uses forged or stolen information to have your property title transferred to them, and may then take out a mortgage on your home and disappear.