Humber/Ontario Real Estate Course 2 Exam Practice

What advantage does title insurance provide in real estate transactions?

1. It guarantees coverage for actual losses and legal expenses from claims.

2. It's beneficial exclusively for buyers and not sellers.

3. It can eliminate the need for a survey.

4. Any discovered title-related issue before closing is covered.

The correct answer is: It can eliminate the need for a survey.

Title insurance provides several advantages in real estate transactions, and one of them is that it can eliminate the need for a survey. By opting for title insurance, buyers can bypass the requirement for a survey because the insurance policy protects against issues such as encroachments, property line disputes, and other title defects that a survey would typically reveal. This can save both time and money for the parties involved in the transaction. Option A is incorrect because while title insurance does provide coverage for certain risks, it does not guarantee coverage for all actual losses and legal expenses from claims. Option B is incorrect because title insurance can be beneficial for both buyers and sellers in real estate transactions, as it provides protection for various issues related to the property's title. Option D is incorrect because title insurance typically covers only those title issues that were unknown at the time the policy was issued. Any discovered title-related issue before closing may not be covered unless it was specifically included in the policy.