What is title insurance, and how is it used in Alberta residential transactions?
Correct Answer
B) Insurance protecting the buyer and/or lender against title defects, survey issues, fraud and other risks a title search misses
Title insurance in Alberta protects the buyer and/or lender against financial losses arising from title defects, survey discrepancies, encroachment issues, fraud, and other risks that may not be discovered through a standard title search. While not mandatory, it is increasingly common in Alberta and some lenders may accept title insurance in lieu of an updated RPR.
Why This Is the Correct Answer
Title insurance in Alberta covers losses from title defects, fraud, survey discrepancies, encroachments, liens, and other risks not discoverable through standard title searches. It is governed by insurance regulations and issued as a one-time premium policy. Alberta's Land Titles Act provides a Torrens system assurance fund, but title insurance offers broader coverage.
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