Founded in 1991, the FCT group of companies is based in Oakville, Ontario, providing industry-leading title insurance, default solutions and other real estate-related products and services to approximately 450 lenders, over 44,000 legal professionals and 5,000 recovery professionals, as well as real estate agents, mortgage brokers and builders, nationwide.
Anu and Tanya talk about the basics of Title Insurance, how it helps the homeowner, and why it’s important to get right away.
Key Points (Click the timestamp link to jump to that part of the episode)
- [0:53] What does the ‘Title’ in Title Insurance mean?
- When registering your mortgage it is the deed to the property.
- A list of all the registrations.
- A history of what is going on with that property.
- [1:43] When a lender asks for Title Insurance who is the beneficiary of that coverage and what does it cover?
- The lender and indirectly the homeowner.
- One of the many types of coverage that stands out is Gap Coverage. Gap Coverage covers anything that might happen from the time you want to move in, when you want to register on title. In Alberta, it can sometimes take up to 2 weeks to get registered on title.
- [3:35] Why do I have to pay for Title Insurance if I’m protecting the lender?
- Title Insurance does cover more than just the lender. It covers many other aspects of the property.
- [4:45] How do you get Title Insurance?
- It’s best to get it at the start.
- $309 + tax for the lender policy and between $75 to $100 for the client policy.
- Once you pay, you are covered for the life of that mortgage.
- You will be protected from issues like forgery, title fraud, encroachments and more.
- If you already own your home but don’t have Title Insurance, call FTC (see the number below).
- [6:23] Who are the other 2 Title Insurance companies?
- Stewart Title
- [11:05] Annu shares some situations where having Title Insurance benefited a homeowner.
- [14:00] How can Title Insurance help when you are in the home?
- An encroachment situation is a good example of this. If your neighbour builds a garage or deck that moves into your property, we will cover the costs to fix the situation.
- Lack of permits before purchase.
- [15:25] What happens when you find out after the fact that your neighbour has encroached on the title?
- This is still covered.
- [18:35] What happens when you have paid off your mortgage?
- Fraud and forgery come up at this stage.
- [21:10] What resources does FCT provide for fraud prevention?
- FTC.ca has lots of resources.