Edmonton Real Estate Blog

Title Insurance will insure the title of Real Property from the time of purchase or refinance until the purchase/owner sells the property.  It does not transfer to a new owner.  This is the main difference between Title Insurance and a Real Property Report.

A Real Property Report is usually good for 20 years (depending on the Lender), and as long as there are no changes to the exterior of the property it is transferrable to the new owner.

 Most Lawyers acting on behalf of a buyer will insist on a Real Property Report with Municipal Compliance, as it is transferrable and immediately confirms the state of the Title.

 Title Insurance can be used when both parties to a contract (purchaser and seller) agree, or in a refinance situation where the individual refinances his/her home and cannot find the Real  Property Report or has made changes to the exterior of the property that are not reflected on the Real Property Report in  his/her possession.

 Title Insurance is not transferrable and most buyers’ lawyers will insist on the Real Property Report/Compliance, but Title Insurance does have some advantages.  Title Insurance protects against fraud, defects on Title, invalid title documents, and charges to a property arising after the purchase.  Title Insurance also allows you to close your transaction before registration at Land Titles (Gap Coverage).

 This is a common situation facing buyers and sellers that is important.  So please, ask questions regarding the difference between a Real Property Report and Title Insurance before you sign the Offer to Purchase.

Source: James Pittaway – Pittaway and Assc.          Phone: (780) 702-5056

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