Title Insurance: Who Buys?



Clause 10 in the standard Form OREA Agreement of Purchase and Sale states… “which seller is unable or unwilling to remove, remedy or satisfy or obtain insurance… (Title Insurance).”

Is the Seller responsible to pay/obtain Title insurance?


While ordinarily, the Buyer obtains and pays for title insurance, this is an exception. Here, the Seller pays, and it’s a satisfactory response to a requisition.

There is a slight difference in the negotiated deal over the years. It used to be “good title with exceptions”, and now that has been changed to an “insurable title”.

This means the Seller may respond to a valid title requisition with an offer to provide title insurance instead. Previously, this was unavailable, but  in 2012, this was changed. So, now, the Buyer is stuck.

Brian Madigan LL.B., Broker


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