Ken  Johnson

Ken Johnson

REALTORĀ®

3DX Real Estate

Mobile:
810-599-8375
Office:
810-599-8375
Email Me

Ken Johnson

REALTORĀ®

3DX Real Estate

Mobile:
810-599-8375
Office:
810-599-8375
Email Me

BUYERS: Title Insurance Details

 

What is Title Insurance?

Title insurance is protection against loss arising from problems connected to the title of your property. Before you purchased your home, it may have gone through several ownership changes, and the land on which it stands went through many more. There may be a weak link at any point in that chain that could emerge to cause trouble. For example, someone along the way may have forged a signature in transferring title. Or there may be unpaid real estate taxes or other liens. Title insurance covers the insured party for any claims and legal fees that arise out of such problems.

Prior to closing, public records are "searched" to determine the previous ownership of the property, as well as prior dealings related to it. At closing the buyer expects property that is free and clear of such claims, so typically they must be cleared up before closing.

Occasionally problems regarding title are not discovered before closing, or are not remedied before closing. Such defects can make the property less marketable when the buyer subsequently sells and, depending on the nature of the problem, can also cost money to remedy. For example, the survey might have failed to show that an addition to the property was built without permission. The buyer of the property could be out-of-pocket if he is later required to remove the addition.

Am I required to purchase Title Insurance?

Title Insurance is required if you need a mortgage, because all mortgage lenders require such protection for an amount equal to the loan. It lasts until the loan is repaid. As with mortgage insurance, it protects the lender but you pay the premium, which is a single-payment made upfront.

Who is protected with Title Insurance?

Title insurance policies can be issued in favour of a purchaser (on new/resale homes, condos and vacation properties), a lender, or both the purchaser and lender. Some of the risks that are frequently covered under a title insurance policy include: survey irregularities; forced removal of existing structures; claims due to fraud, forgery or duress; unregistered easements and rights of-way; lack of pedestrian or vehicular access to the property; work orders; zoning and set back non-compliance or deficiencies; etc.
For a risk to be covered, usually it has to have existed as of the date of the policy. As with any type of insurance policy, certain types of risks might not be covered, for example, native land claims and environmental hazards are normally excluded. Be sure to discuss with your lawyer what risks are covered and what are excluded.

When does the insurance coverage end?

When the title insurance is covering the purchaser, it remains in effect as long as the insured purchaser has title to the land. Some policies also protect those who received title as a result of the purchaser's death, or certain family members (e.g., a spouse or children) to whom the property may have been transferred for a nominal consideration.

When the title insurance is covering the lender, the policy remains in effect as long as the mortgage remains on title. A lender covered under a title insurance policy is insured in the event the lender realizes on its security and suffers actual loss or damage with respect to a risk covered under the policy. Lenders are usually covered up to the principal amount of the mortgage.

The premium for title insurance is paid once (at the time of purchase). Generally speaking, in Canada the purchaser of the property pays for the title insurance, though there can be situations where the seller pays for it. Some policies automatically cover both the purchaser and lender; others will cover both for a small additional fee

Protection and Peace of Mind

Title insurance can help ensure that a closing is not delayed due to defects in title. And, if an issue relating to title arises with respect to a risk covered under the policy, the title insurance covers the legal fees and expenses associated with defending the insured's title and pays in the event of loss.

 

Have Questions?

 

As a lifelong Livingston County native, growing up, living and working in Livingston County gives me a unique perspective and great insight into all things Livingston County and the surrounding areas.

I earn the respect of my clients by working tirelessly on their behalf and by always offering them candid advice. I provide excellent service to buyers and sellers in order to earn their trust, referrals, and repeat business. I have sold homes in all price ranges from starter homes and high-dollar estate properties to condominiums, ranch properties, and investment properties.

 

 

The Top 3 Things I do with and for my clients:

  1. Consult with you…I will make sure you are making informed decisions at every step in the process.
  2. Negotiate for you…This means I will treat your money likes it’s my money.
  3. Handle all the Details for you…This means I will ensure the hundreds of steps in the real estate process are handled properly for you.

I studied business at Eastern Michigan University. In terms of real estate, my education is never complete. I continually invest time, money and thought into the latest sales, marketing and negotiations techniques and tools to make sure my clients are always getting the best.

Outside of real estate, I take pride in giving back to the community and those around me.  I support numerous local organizations and charities—including Fund a Life, Livingston County Schools, The Amber Reineck House, Brighton Walk to End Alzheimer's and The Naz.

When I’m not working, I enjoy spending time with my wife and 3 kids, traveling, playing guitar, hunting, football and cooking. 

From our initial meeting to finding your dream home, negotiations and the closing table, it is an honor and privilege to guide you through one of life's largest financial decisions. Because buying or selling a home is more than a transaction, it's a life-changing experience.



Area Covered: Livingston County and the surrounding area

Languages Spoken: English