Title InsuranceTitle insurance is a type of insurance policy that protects homeowners and lenders against certain types of financial loss related to the title of a property. In Alberta, title insurance is commonly used in real estate transactions as a way to protect buyers and lenders from potential risks associated with the title of a property.

When a property is sold, a title search is conducted to ensure that the seller has the legal right to sell the property and that there are no outstanding liens or encumbrances on the property. However, even with a title search, there can still be issues with the title that are not discovered until after the sale has been completed. For example, there could be a claim on the property that was not discovered during the title search, or there could be a mistake or error in the public records related to the property.

Title insurance provides protection against these types of issues. If a problem with the title is discovered after the sale has been completed, the title insurance policy will cover certain types of financial losses related to the issue. This can include the cost of legal fees, damages, or other costs associated with resolving the issue.

In Alberta, title insurance is not mandatory, but it is often recommended by real estate professionals and lawyers as a way to protect buyers and lenders from potential risks. The cost of title insurance varies depending on the value of the property and the policy coverage, but it is typically a one-time premium paid at the time of the property purchase.

It is important to note that title insurance does not cover all types of issues related to the property title. It is still important to conduct a thorough title search and obtain legal advice before purchasing a property.