Title Insurance Vs RPR: Which Is Best? – 2022
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You’re selling your home, and you’ve come across two acronyms you need to familiarize yourself with Title Insurance Vs RPR. What are they? How are they different? Do you need them?
Phone: 289-816-CYPR (2977)
Fax: 289-312-CYPR (2977)
Office: 755 Queensway East, Suite 202, Mississauga, ON
Learn more about our Real Estate Practice Area in detail here.
Introduction to Title Insurance Vs RPR
Here, we will explore what Title Insurance Vs RPR are, what they do, and how they differ. After reading this post, you will better understand these services and whether or not you need them for the sale of your home.
What is Title Insurance?
Title insurance is a type of insurance that protects the lender and homeowner from financial loss due to title defects. A title defect is any legal problem with property owners that makes the title invalid. Title insurance protects against such things as forgery, fraud, undisclosed liens, and errors in public records.
There are two types of title insurance: lender’s title insurance and owner’s title insurance. Most lenders require lender’s title insurance to get a loan. Owner’s title insurance is optional, but it is recommended if you buy a home.
RPR (Reconveyance Protection Report) is a type of insurance that protects the lender from loss due to reconveyance risk. Reconveyance risk is when the borrower pays off the loan, but the deed is not transferred back to them because there was a problem with the title. RPR protects against such things as forgery, fraud, undisclosed liens, and errors in public records.
Owner’s RPR is optional but recommended if you are buying a home. It protects you from reconveyance risk and lets you know that your home’s title is clean and valid.
What is RPR?
RPR, or Reciprocal Property Rights, is a type of insurance that protects the rights of both the buyer and the seller in a real estate transaction. RPR coverage can vary depending on the state where the property is located, but it typically includes things like the right to use the property, the right to sell the property, and the right to live in it. Lenders usually require this type of insurance to protect their investment in the property.
What are the Pros and Cons of each?
Several key differences exist between a Title Insurance Vs RPR (Real Property Report).
Here are some of the pros and cons of Title Insurance Vs RPR each:
Title Insurance:
Pros:
- Covers any unforeseen problems with your property titles, such as undisclosed liens or encumbrances.
- It provides peace of mind that you are protected from potential legal issues.
- It is typically required by lenders to get a mortgage.
Cons:
- It can be expensive, especially if you are purchasing a high-value home.
- Does not cover certain risks, such as environmental contamination or zoning changes.
Real Property Report (RPR):
Pros:
- Much less expensive than title insurance.
- Required by most provinces/territories to complete a real estate transaction.
- Gives you an up-to-date snapshot of your property, including any easements, right-of-ways, or encroachments.
Cons:
- It does not protect against potential title problems that may arise in the future.
Which is right for you?
Title insurance is one of the most important investments when purchasing a home. It protects you from financial losses if the title to your property is ever challenged or if there are any hidden liens or encumbrances against it. A title search and insurance policy can cost hundreds or even thousands of dollars, but it is worth it for its peace of mind and protection.
An RPR is a report that shows all recorded information about a property, including its history, current owner, square footage, zoning classification, and more. It is an essential tool for buyers and sellers to have, as it can help identify potential problems with a property before entering into a purchase contract.
Choosing between a Title Insurance Vs RPR can be a complex decision to make, at Cypher Law we strive to make complex situations and decision making simpler!
So, which is right for you? Title Insurance Vs RPR?
If you are buying a home, it is highly recommended that you invest in title insurance and an RPR. This will give you the highest level of protection and peace of mind when making such a large purchase.
You can always consult with a legal professional to help you find the best suitable solution for you when it comes to Title Insurance Vs RPR.
Conclusion
In short, title insurance protects the lender in case of any problems with the property’s title, while an RPR is simply a report that gives you an overview of the property.
While both Title Insurance Vs RPR are important, it is always best to do your research or consult a legal professional to help you guide you through the process.
Phone: 289-816-CYPR (2977)
Fax: 289-312-CYPR (2977)
Office: 755 Queensway East, Suite 202, Mississauga, ON
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