Humber/Ontario Real Estate Course 2 Exam Practice

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What do title insurance policies typically NOT cover?

  1. Survey errors

  2. Unknown liens

  3. Fraud

  4. Building code violations

  5. Title defects

  6. Encroachments

The correct answer is: Building code violations

Title insurance policies typically do not cover building code violations. Title insurance is primarily focused on protecting the policyholder from financial losses due to issues related to the title of the property, such as unknown liens, fraud, title defects, survey errors, or encroachments. Building code violations are related to the physical condition or use of the property, which is typically not covered under a standard title insurance policy. It is important for property buyers to be aware of the differences in coverage and consider additional insurance or inspections to protect against building code violations.

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