Ontario Tax Sale Property
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Title Insurance
Chapter: GENERAL QUESTIONS
Cris
Does anyone know whether title insurance would cover a purchase of a property under tax sale upon which it is later found to have a crown lien? That is, would they pay off the crown lien as part of the coverage if such a defect were found post-purchase?
Cris
f the crown lien is not registered prior to the sale date, then title insurance does cover this as it would then be considered a defect. Title Insurance companies search title prior to finalizing their coverage, so if they don't find anything when they do their search, then you're covered should one be registered erroneously later.