What protection does TitlePLUS title insurance give for events after closing?

Under a title insurance policy, a property owner has a direct claim against an insurance company if a specified title risk causes a loss, regardless of the source of the loss. Where a purchaser receives a lawyer's opinion on title, the purchaser only has a claim if he or she can prove that the cause of the loss fell within the scope of the lawyer's retainer and the lawyer acted negligently in respect of that issue.

It is important to remember that a solicitor's opinion on title can only speak to the state of the property as of the date of closing. A lawyer cannot provide an opinion on any future event(s). There may not be any recourse against the lawyer for events that occur after closing.

For special post-closing coverages, you must look to title insurance. Title insurance policies are increasingly offering protection for certain post-policy date events. These events include fraud against the homeowner or lender, encroachments by a neighbour, and selected construction liens.

TitlePLUS title insurance can provide better coverage than a solicitor's opinion on title by providing, for example, coverage for a homeowner if someone fraudulently steals title to the insured property or for the fraudulent discharge of a mortgage that harms the interest of the lender. Homeowners are also protected if a neighbour starts encroaching on the property after closing. Post-policy date coverage for lenders is also significant where a line of credit or collateral mortgage is being insured.

These advantages make it virtually impossible for a lawyer's opinion to compete with the coverage available in a title insurance policy.¹

¹ Please refer to the policy for full details, including actual terms and conditions.

• Introduction
• Who stands behind the TitlePLUS Program?
• How is TitlePLUS coverage different?
• What is "legal services coverage"?
• What title-related risks does TitlePLUS title insurance cover?
• What does TitlePLUS title insurance not cover?
• What protection does TitlePLUS title insurance give for events after closing?
• Using the TitlePLUS Program
• Sample TitlePLUS Policy, including Supplementary Coverage Endorsement for Residential Properties¹
• How much does TitlePLUS title insurance cost and who pays for it?
• How can I become a TitlePLUS Subscriber?
• TitlePLUS Consultants and Territories
• House Call
• How do I make a claim?
• Confirmed Lenders
• Referrals
• Working With a Lawyer When You Buy a Home Brochure
• Sample Forms, Letters, and Reports
• TitlePLUS Team
• Articles