Transfer Title Insurance?

Leveraging, renting vs owning, making an investment or buying a home?
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FarmerJoe
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Transfer Title Insurance?

Post by FarmerJoe »

Hello,
I have a simple question: I am paying cash for a property and my attorney/closing agent is getting title insurance, but the title company is dragging their feet and we are going to now miss our closing date possibly because of them, because they are taking so long.

The seller has a mortgage they will be paying, and of course have title insurance - is it possible to have their title insurance transferred or deeded to us? Would this be a quick simple thing, since their title insurance company did everything back when they bought/financed the house 8 years ago?

I can't find a thing searching the internet on "Transfer Title Insurace to a buyer".
Thanks!
Spudd
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Re: Transfer Title Insurace?

Post by Spudd »

I have no idea, I doubt it's possible though. If it were, your lawyer should be aware of it.

However, in googling your question, I did find this company that offers title insurance on a home you already own. You could go ahead with the closing and then buy your title insurance from these guys after closing is complete. You may wish to check on their premiums vs the company your lawyer is currently trying to use.
http://www.stewart.ca/PropertyOwners.html
twa2w
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Re: Transfer Title Insurance?

Post by twa2w »

Title insurance protects the buyer of the title insurance, not necessarily the owner of the property.
Is your lawyer buying the title insurance on your behalf or for himself?

So lets say the bank gives you a HELOC and uses title insurance rather than a lawyer to register title.
The title insurance in this case protects the bank,not you if there is a defect in title. if you close the HELOC, the bank no longer needs protection and the title insurance lapses. If there is a title problem prior to closing the HELOC in most cases you will pay to correct title. If you don't pay your mortgage and the bank forecloses and finds a title defect, the title insurance company is on the hook.

So title insurance is not transferable.

However, if another title insurance company provided insurance previously, then you may want to ask that company to provide insurance.

Not sure why title insurance is taking so long unless there is a problem. Normally it only takes a day or so. The seller is supposed to provide good title on closing so he may be prepared to provide you with title insurance.

Is your lawyer getting the insurance to protect himself or on your behalf?
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