Title insurance in Alberta, Canada, is a form of insurance that protects property owners and lenders against financial loss or issues related to the title of a property. The title refers to the legal ownership and rights associated with a property. Here are key aspects of title insurance in Alberta:
- Protection Against Title Defects:
- Title insurance helps protect against various issues related to the property’s title, such as errors or omissions in public records, fraud, encroachments, zoning violations, and other title-related defects.
- Coverage for Unforeseen Issues:
- It provides coverage for unforeseen issues that may arise after the purchase of the property, which might not be apparent during the initial title search.
- Legal Expenses:
- Title insurance can cover legal expenses associated with defending the insured’s title in the event of a covered claim.
- Lender and Owner Policies:
- There are typically two types of title insurance policies: one for the lender and another for the property owner. Lenders often require title insurance to protect their interests in the property.
- One-Time Premium:
- Title insurance is usually obtained with a one-time premium paid at the time of property purchase. The coverage continues for as long as the insured owns the property or has an interest in the mortgage.
- Optional but Recommended:
- While title insurance is not mandatory in Alberta, it is often recommended because it provides an additional layer of protection beyond the traditional title search process.
- Common Title Issues Covered:
- Title insurance policies typically cover a range of common issues, such as survey errors, undisclosed liens, and issues with public records.
It’s essential to carefully review the terms and coverage of the title insurance policy, as specific coverage may vary between policies and insurance providers. Property buyers and lenders should consult with legal and real estate professionals to ensure they understand the protections offered by title insurance in the context of their specific property transaction.
