Title Insurance

Title insurance is a one-time premium insurance product that protects property owners and lenders against title defects, fraud, unknown encumbrances, and certain survey-related risks. Under BC's Land Title Act, RSBC 1996, c. 250, the province operates an indefeasible Torrens title system, but title insurance provides additional protection against risks not covered by the government title registry. Coverage terms, exclusions, and whether title insurance is appropriate in a given transaction should be reviewed with your conveyancing lawyer or notary before acting.

No, title insurance is not mandatory under BC law. The Land Title Act, RSBC 1996, c. 250, establishes BC's government-guaranteed title registration system, and many transactions proceed without title insurance. However, lenders may require title insurance as a condition of mortgage financing, and purchasers may choose to obtain it for additional protection. Verify whether title insurance is appropriate for your transaction with a BC lawyer or notary.

BC's Land Title Act, RSBC 1996, c. 250, establishes an indefeasible Torrens title system where the government-maintained Land Title and Survey Authority registry provides strong title assurance and a statutory assurance fund. Title insurance provides additional coverage for certain risks not covered by the statutory assurance fund, such as fraud, forgery, survey defects, and certain encumbrances that may not appear on title. The two systems are complementary; discuss with your BC conveyancing lawyer or notary whether title insurance adds meaningful protection in your specific transaction.

Title insurance policies typically cover risks including title fraud, forgery, unknown encumbrances, survey defects, zoning violations, and certain access issues, though specific coverage varies by policy and insurer. The Land Title Act, RSBC 1996, c. 250, provides some protections through the Torrens system and assurance fund, but title insurance may cover gaps or provide faster resolution. Review the specific policy wording, exclusions, and coverage limits with your BC lawyer or notary to understand what is and is not covered in your situation.

There is no legal requirement under BC law dictating who pays for title insurance; it is a matter of negotiation between buyer and seller or determined by market practice. Typically, if a purchaser or their lender chooses to obtain title insurance, the purchaser pays the one-time premium at closing, but the parties may agree otherwise in the Contract of Purchase and Sale. Verify the allocation of this cost with your BC lawyer, notary, or REALTOR® based on the terms of your specific transaction.

Title insurance cannot replace a survey, but some title insurance policies include coverage for certain survey-related risks, such as encroachments or boundary disputes. Local Government Act, RSBC 2015, c. 1, zoning compliance and the Land Title Act, RSBC 1996, c. 250, registration requirements may necessitate a current survey in specific transactions (e.g., subdivision, new construction, or lender requirements). Discuss with your BC lawyer or notary whether a survey is legally required or prudent in your transaction, and whether title insurance coverage for survey risks is adequate for your purposes.

Standard title insurance policies typically exclude coverage for property tax arrears or municipal liens that are publicly recorded or discoverable through proper searches at the time of closing. Under the Land Title Act, RSBC 1996, c. 250, municipal tax liens and certain statutory charges have priority and are discoverable through title and tax searches conducted by the conveyancing lawyer or notary. Review the specific exclusions and coverage with your BC lawyer or notary, and ensure all requisite searches (including municipal tax certificate) are completed before closing.

Title insurance for owners is generally effective for as long as the insured party (or their heirs) holds an interest in the property, with a one-time premium paid at closing. Lender's title insurance typically remains in effect until the mortgage is discharged or the loan is repaid. The specific duration, coverage continuation for heirs, and conditions are set out in the policy terms; verify these details with your BC lawyer or notary and review the actual policy document before relying on coverage.

Title insurance policies typically include coverage for title fraud, including fraud occurring through BC's electronic land title system, subject to policy terms and exclusions. The Land Title Act, RSBC 1996, c. 250, and the Land Title and Survey Authority implement security measures and maintain an assurance fund, but title insurance may provide additional coverage and faster claims resolution for fraud losses. Verify the specific fraud coverage, exclusions, and claims process in the policy with your BC lawyer or notary before acting.

Yes. Coverage terms, exclusions, exceptions, and whether title insurance is appropriate in a given transaction are typically reviewed with the conveyancing lawyer or notary handling the transaction. Under the Land Title Act, RSBC 1996, c. 250, and BC conveyancing practice, your lawyer or notary conducts title and other searches, advises on title issues, and can explain how title insurance interacts with the statutory protections and risks specific to your property. Always review the policy wording and obtain professional advice before relying on title insurance coverage.