Protect yourself with a Purchaser’s Waiver of Title Insurance
In Ontario, Rule 2.02(10) of the LSUC Rules of Professional Conduct requires lawyers to discuss title insurance with their clients and advise the clients that title insurance is not mandatory. Clients can either choose to purchase a title insurance policy or to rely on the lawyer’s opinion on title.
All too often, LawPRO sees claims arising when clients allege that their lawyer failed to inform them of the post-closing protections provided by a title insurance policy. You can protect yourself from such a claim by having your clients sign a waiver when they choose to rely on your opinion on title. The waiver serves to document your advice regarding title insurance and the clients’ awareness that they will not be receiving insurance coverage for things like fraud or post-closing encroachments onto the property.
On the TitlePLUS website you can find a precedent Purchaser’s Waiver of Title Insurance that you can use in your office.