Does Title Insurance Really Protect You? We all have heard horror stories about home insurance, car insurance or traffic insurance not covering an accident or claim after the fact.
You purchase insurance with the assurance that you will be covered or are told that you will be covered if such & such occurs etc.
Fortunately, like life insurance, we have not had to make a claim. It is when you make a claim that all of a sudden you find out that you are not covered.
This month a client who's home was to close found out that there were easements on her property and the purchaser wanted a substantial discount in price to close. Her lawyer, through which she purchased title insurance when she bought the home, 5 years ago , and title insurance say that's too bad, we did our job and your client is not covered in any way.
So, the home did not sell and we have re-listed the home showing this easement and explaining why the home did not close.
Everyone we talk to say that insurance should cover it but to no avail. (yet). This turn of events has really ruffled my feathers and I am pursuing justice and remuneration for my client with a determination that shoddy legal work, the practice of the wolves protecting the sheep (this title insurance company was formed and operated by lawyers) and that the fallacy and discrepancy in insurance coverage will be made known to the public and these practices be remedied by the so called safe guards in place.
I am gathering as much information as possible and if you or your clients have experienced issues with Title Insurance in Ontario or Canada, please let me know.
Obviously no names are published here to protect me, as I realize I am like David going after Goliath but the stories I am hearing proves that this is not an isolated case.
In reviewing my files, I have had hundreds of purchasers use title insurance and fortunately have never had to make a claim. But what if they had to? Would they be covered?
When representing a purchaser in the future, advise them that lawyers use title insurance 99% of the time and perhaps they should find out what is not covered!
Keep tuned, there will be more to the story!
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