5 Sticky Situations Title Insurance Can Protect You From
Buying a home is one of the biggest investments you’ll ever make. But what if, after closing, you find out there’s a hidden issue—one that could cost you thousands or even put your homeownership at risk? That’s where title insurance comes in.
Title insurance protects you from legal and financial troubles related to your home’s ownership history. Here are five sticky situations where having title insurance can be a lifesaver!
1. Unexpected Liens on the Property
Imagine moving into your new home, only to receive a notice about unpaid debts from the previous owner—debts that are now legally attached to your property. This could include:
✔️ Unpaid property taxes
✔️ Contractor bills (for work done on the home)
✔️ Outstanding utility bills
💡 How Title Insurance Helps: Your policy can cover the costs or help you fight the claim so you’re not stuck paying someone else’s debt.
2. A Long-Lost Heir Appears
Sometimes, homes are sold after an owner passes away. But what if a long-lost heir (who was legally entitled to the property) suddenly shows up claiming ownership? In Canada we have probate to usually solve this issue, but in a rare case, title insurance can help.
💡 How Title Insurance Helps: Your policy covers legal costs and protects your right to keep your home.
3. Forged or Fraudulent Documents
Title fraud is a real threat. A scammer could forge signatures on property documents or even fraudulently transfer ownership before you buy the home. Later, you might find out that the seller wasn’t actually the rightful owner—meaning your purchase wasn’t legal.
💡 How Title Insurance Helps: If you unknowingly buy a home under false ownership, title insurance protects your investment and helps cover legal expenses.
4. Errors in Public Records
Clerical mistakes happen. A misspelled name, incorrect legal description, or missing document in the public records could create major headaches for you as the homeowner.
💡 How Title Insurance Helps: Your policy helps correct the errors and covers any legal costs required to fix ownership records.
5. Property Boundaries & Survey Issues
What if your neighbour claims part of your backyard actually belongs to them? Boundary disputes can arise when property lines weren’t properly recorded or if an old survey conflicts with the new one.
💡 How Title Insurance Helps: If a legal battle over land ownership arises, your policy helps cover the legal fees and protect your property rights.
Is Title Insurance Worth It?
Absolutely! It’s a one-time payment that gives you long-term protection from unexpected legal and financial issues. Whether it’s a lien, a boundary dispute, or a case of fraud, title insurance ensures that your home stays your home.