Under Ontario's Land Titles system, how does title insurance affect property valuation and market confidence?
Correct Answer
B) It provides protection against title defects, enhancing marketability
Title insurance under Ontario's Land Titles system protects against various title defects and survey issues, which enhances a property's marketability and buyer confidence. While it doesn't directly increase value, it reduces risk and can make properties more attractive to potential buyers.
Why This Is the Correct Answer
This answer is correct because title insurance protects the insured owner or lender against covered title defects, such as survey problems, fraud and some work orders, and pays the cost of defending covered claims. That reduces risk for buyers and lenders and makes transactions smoother, which enhances marketability. It supports confidence rather than directly raising the property's value.
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