COOTE, HILEY, JEMMETT LIMITED

Considerations:

Cost

A Title Insurance policy is usually purchased to cover the term of a mortgage, and must be renewed, for an additional premium, each time the mortgage is re-negotiated or renewed.

Disclosure

A Surveyor’s Real Property Report discloses all pertinent information about the boundaries of the property, the extent of occupation, and the location of easements or rights of way. The possibility of adverse claims through long standing adverse occupation or encroachments would be identified.

A Title Insurance policy does not disclose any information about the property, but insures against demonstrated loss, if such occurs.

Caveat Emptor

A purchaser can be forewarned, by a lawyer’s opinion of title and a Surveyor’s Real Property Report, if there are problems with the quality and extent of title before completing a purchase and can requisition remedies to the problems, if any, before closing the transaction.

A Title Insurance policy, which is issued by an insurer on the basis of a lawyer’s report without reference to an up-to-date survey, does not provide any information about a property to an owner or lender. Any problems that might have been revealed by an up-to-date survey are often excluded from coverage and are passed on to the uninformed purchaser or lender, to be resolved by them at a later date.

Future Use

Where a home buyer intends to make improvements on a newly purchased property, such as erecting or renewing fences, extending the building or adding outbuildings or decks, a survey would be required for either locating the property limits or for acquiring a building permit. Having the vendor provide the survey before closing the transaction aids in the transaction and provides the information needed for future projects on the property.

Peace of Mind

Your decision on the course of action you propose, from full disclosure about the new property to simply insuring your mortgagor against loss in the event of problems, is a personal choice. We believe that prudent purchasers should get as much information as possible about a prospective purchase before committing their funds, for their protection and peace of mind.