|
|
|
TitlePLUS |
 |
 |
Introduced in Ontario in the
late fall of 1997, TitlePLUS is a new real estate service
available to Ontario home buyers through their real estate
lawyer. It's objective - to provide home buyers with
unparalleled protection, peace of mind, and savings in time,
worry and money.
TitlePLUS combines two elements:
Comprehensive insurance coverage for as long as the home buyer
and his/her heirs own the property for the risks associated with
home buying - title risk such as zoning issues, work orders,
government errors, lack of up-to-date surveys, and for legal
services provided by lawyers; and An electronic process that
streamlines and standardizes legal services provided by
TitlePLUS lawyers.
What does TitlePLUS cover?
TitlePLUS automatically insures both the home buyer and the
lender in a transaction for title-related risks and legal
service related risks.
Title related risks that are insured include:
Defects in title such as conflicting ownership or interests in
the land; liens, mortgages or other encumbrances that affect
title; and the unmarketability of title;
Compliance risks such as work orders, major encroachments or
non-compliance with restrictive covenants;
Access-related problems such as lack of legal access to the land
because of rights-of-way or easements, and other rights and
defects such as rights in the land because of tenancies.
Legal service related risks that are insured include: Errors or
omissions the lawyer could make such as failing to register a
document or remove an encumbrance, or improperly adjust for
items on closing.
Differing from traditional title insurance, TitlePLUS also
covers many of the risks normally beyond the scope of a lawyer's
opinion-issues such as fraud, forgery, survey errors, errors
made by municipalities and utilities in providing information to
the lawyer.
How does TitlePLUS work?
Home buyers ask their lawyer to use TitlePLUS for their real
estate transaction. By doing so, the lawyer uses TitlePLUS
software to monitor required searches, inquiries and other legal
work associated with issuing a TitlePLUS insurance policy, and
files required data on-line with LPIC, the title insurer.
Once the TitlePLUS insurance policy is approved, LPIC issues the
policy electronically to the lawyer's office where the policy is
printed and a copy is provided to the home buyer by the lawyer.
Who pays for TitlePLUS and how much does it cost?
The home buyer, as the individual insured under the policy,
typically pays for the TitlePLUS policy. The TitlePLUS premium
varies with the purchase price of the property with average
prices of $250.00 to $300.00 for properties between $125,000.00
and $250,000.00. Under certain circumstances, the cost of the
premium can be offset by savings in disbursements that result
from the lawyer having to conduct fewer searches and inquiries.
How does an insured make a claim?
TitlePLUS allows home buyers who have a problem with title or
legal services to make a claim directly with LPIC, which then
investigates the claim, and if appropriate either pays to
rectify the problem (such as relocating a fence or garage) or
compensates the home buyer for the actual financial loss
suffered up to the policy limit. LPIC will also pay the costs of
legally defending the title.
The Future
As the province of Ontario rapidly moves towards electronic
title searching and on-line document registration, rest assured
that TitlePLUS and similar insurance policies will become
increasingly popular as people seek ongoing reassurance and
peace of mind that their deal will be trouble free.
March 16, 1998 |
|
