We all know about this thing called 'Title Insurance,' or at least we know about it in the sense that if the seller doesn't have an RPR and compliance, they often want to give the buyer Title Insurance instead.
From previous emails, you know my view that Title Insurance is not a substitute for the RPR and compliance. They do completely different things and are supplementary to each other, not replacements for each other.
Here is an example of why Title Insurance is valuable.
A Realtor called me about a purchase from five years ago. He received a call from his buyer telling him that the City of Edmonton had sent a letter saying that the development and building permits taken out before they bought the home were not closed/inspected and fully approved.
The City wanted to do their final inspection.
On completing their final inspection, the City inspectors found some relatively serious issues. There were negotiations about what really needed to be fixed/redone.
Luckily, these buyers obtained Title Insurance when they bought.
Suppose the buyer and the City did not resolve their differences. In that case, the bottom line for the City is that they could tell the buyer that if they don't fix the inspection issues per the City inspection/direction, then the City will take them to Court!
This is why Title Insurance is valuable. If push comes to shove and the City forces a buyer to fix deficiencies, Title Insurance will likely pay for the cost of the fix-ups.
We recommend that our clients get an RPR, compliance and Title Insurance. You might consider making that same recommendation.
Protect yourself.
Cheers,
Barry
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