Commercial and Residential Real Estate Brokers
Sutton Secur vs Title Insurance
We are often asked what the difference is between title insurance and the Sutton Secur program. This is an excellent question, as the two products are different, operate differently, and provide coverage for different types of issues.
What is Title Insurance?
Title insurance is an insurance policy required by the lender or notary. It protects the property owner or lender (depending on the policy terms) against challenges to the property's title or ownership rights. The policy covers losses resulting from title defects, even if they existed before the transaction was completed.
It also covers losses arising from title defects or issues related to the property's title that prevent the owner from holding clear and marketable title. Common title defects include rights of way, encroachments from neighboring properties, and unpaid liens.
Does Sutton Secur Replace Title Insurance?
Sutton Secur does not replace title insurance. Although both products provide protection related to real estate transactions, they differ in two key ways.
1. Type of Coverage
Title insurance compensates the policyholder financially in the event of a title defect. If you hold such insurance and need to file a claim, your insurance company will likely issue a cheque (or send one to your lender if they are the policyholder) once the claim has been approved.
By contrast, Sutton Secur is a legal protection program that provides coverage for legal fees up to $3,000. In the event of a dispute, a Sutton Secur certificate holder has immediate access to a real estate lawyer who will intervene to help resolve the issue. There is no deductible and no lawyer's fees to pay up to the $3,000 coverage limit (however, disbursements such as court filing fees or bailiff fees are not included).
2. Covered Issues
While title insurance only provides coverage for title defects, the Sutton Secur program applies to a wide range of issues that may arise before, during, or after the completion of a real estate transaction.
Do I Need Sutton Secur if I Have Title Insurance?
Yes. Sutton Secur provides coverage for a broad range of potential issues, including many that are not related to the title of your property.
Your Sutton Secur certificate offers up to $3,000 in coverage that may be used to help resolve the following issues.
Hidden Defects
Hidden defects are among the most common problems that can arise following the purchase or sale of a home. Your Sutton Secur certificate may help you compel the seller to correct the situation or obtain compensation for the cost of repairs, renovations, or damages.
The most common hidden defects include:
-
Infestations;
-
Mold;
-
Cracked foundations;
-
Leaks;
-
Plumbing problems;
-
Heating or cooling system issues;
-
Electrical or wiring problems;
-
Environmental issues (such as soil contamination).
The Sutton Secur certificate is also valid for legal fee coverage in the case of other issues that, surprisingly, are often considered hidden defects under the law. If a violent death or suicide occurred in the home and the seller failed to disclose it, or if the property has ties to organized crime or has been used for criminal activities, you may have legal recourse against the seller.
Disputes
In the event of a dispute or conflict, your Sutton Secur coverage may help resolve issues such as:
-
A dispute with neighbors;
-
A landlord-tenant dispute or conflict;
-
Issues related to access to or boundaries of your property;
-
Transfer of title;
-
Failure to fulfill contractual obligations;
-
Refusal by a contracting party to perform;
-
Death of a contracting party;
-
Property financing issues.
It is not uncommon to hear people say that we are overinsured in Quebec. However, when it comes to title insurance and Sutton Secur, the two products are complementary rather than overlapping: each provides a different type of protection. While Sutton Secur is not required by your lender (because it protects you, your buyer, or your seller), the coverage it offers can be invaluable in any real estate transaction if something goes wrong.
No page
