Good Title Clause

Assuming that you wish to bargain for “good title with the regular noted exceptions”, and move away from the obligation to accept “title insurance”, then here’s a clause for your consideration.

Deletion of Title Insurance Provision

The parties agree that the following words from Paragraph 10: Title shall be deleted: “or obtain insurance save and except against risk of fire (Title Insurance) in favour of the Buyer and any mortgagee,”.

Effect of the Deletion

Under the Standard Form OREA Agreement, the Seller no longer has the opportunity to secure Title Insurance as a solution to a possible problem. This restores the “good title subject to certain exceptions” provision as the bargain between the parties, rather than an “insurable title” which is the present arrangement.

The buyer need not be stuck with an insurable title which might fail to provide an adequate solution for the buyer to a problem

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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