Definition : Insurance - Title insurance

Damage insurance covering more particularly the condition of the title deeds of a property on a given date. Its purpose is to protect the purchaser or the owner against certain risks, such as identity theft and/or title defects that the notary may not necessarily discover, for example, an encroachment caused by co-owners upon the common portions or the legal hypothec of construction published after the sale. 

 

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You move into your new condo. A few weeks later, a bailiff knocks on your door and serves upon you a notice of preservation of a legal hypothec of construction. He also served all your neighbors. Reading this document, you learn that a dispute remains unresolved between the contractor and a supplier (or subcontractor), concerning work performed or materials furnished that have not been paid by the contractor.  
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Section 1719 of the Civil code of Québec states that the seller must provide the buyer with a copy of the deed of purchase, as well as with a copy of the owner history and of the certificate of location he has on hand. Prepared by a land surveyor, the certificate of location is part of the property titles the seller must supply.  In the interest of the buyer, the certificate of location should clearly describe the current condition of all private portions (for instance, an apartment, a parking or storage space, or even land). Should the seller not have a certificate of location on hand (and unless the promise to purchase states otherwise), they will need to have one prepared, at their own expense. 
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