Title insurance in New Brunswick, Canada is a crucial component of the property purchasing process, offering protection to buyers and lenders against potential issues with the property’s title. Here’s how it works:
What is Title Insurance?
Title insurance is a policy that protects against losses related to defects in the title of a property. These defects could include issues like outstanding liens, encroachments, or fraud that were not discovered during the title search before the purchase.
How It Works:
- One-Time Premium: When you buy a title insurance policy in New Brunswick, you pay a one-time premium at the time of closing. This premium provides coverage for as long as you own the property.
- Protection for Buyers: For homebuyers, title insurance ensures that if a defect in the title is discovered after the purchase, the insurance company will cover the legal fees to defend your ownership or compensate for any loss in property value.
- Protection for Lenders: If you’re getting a mortgage, the lender may require you to purchase a lender’s title insurance policy. This protects the lender’s interest in the property up to the amount of the loan, but it doesn’t protect the homeowner.
- Common Issues Covered: Title insurance typically covers issues like unpaid property taxes, undisclosed heirs who might claim ownership, and errors in public records.
Coverage Includes:
- Ownership Issues: Problems with the legal ownership of the property.
- Existing Debts or Liens: Unpaid taxes or fees associated with the property.
- Fraud: Issues related to fraudulent claims on the property.
- Errors in Property Assessment: Mistakes in boundaries or surveys.
What It Doesn’t Cover:
- Known problems with the title.
- Environmental issues.
- Claims by Indigenous people.
- Additions to the property made by the current owner.
What is the Cost of a Title Insurance:
Title insurance is a one-time fee, typically ranging from $250 to $500, depending on the property’s value. This policy remains valid for as long as you own the property and can be transferred to your heirs.
Why It’s Important:
In New Brunswick, title insurance is particularly valuable because it provides peace of mind, knowing that your investment is protected against unforeseen title issues that could otherwise result in significant financial loss.
*The information provided here is for educational purposes only. Consult professionals before making any financial or real estate decisions.
*This is not intended to solicit Sellers or Buyers under contract.
Are you looking to buy or sell soon? DO you need information about real estate in New Brunswick?
DO not hesitate to contact these REALTOR® with extensive experience within the Greater Moncton market and surrounding areas.
🎯Levine, REALTOR® at Royal Lepage Atlantic
🎯Gold REALTOR® at Royal Lepage Atlantic
