Understanding Surveyor’s Certificates and Title Insurance
When buying or selling a property, you might encounter terms like "surveyor’s certificate" and "title insurance." These two components play an essential role in property transactions, yet they serve different purposes. Here’s a breakdown of what they mean, how they work, and why they matter.
Surveyor’s Certificate
A surveyor’s certificate is a legal and physical document created by a registered land surveyor. Typically produced when a home is built, this document provides an accurate representation of:
Legal Boundaries: Outlines the exact location of the property lines in relation to the land.
Physical Features: Includes structures like the house, garage, and any permanent fixtures.
Easements: Legal rights allowing someone to use or access a part of the property (e.g., a shared driveway).
Encroachments: Indicates if neighbouring structures, such as rooflines or fences, extend over property lines.
Surveyor’s certificates are essential for ensuring clarity around a property’s layout and legal boundaries. However, in older homes, these documents are often missing, as they haven’t always been passed from one homeowner to the next.
Title Insurance
Title insurance helps address the absence of a surveyor’s certificate and provides coverage against various title-related risks. It protects both property owners and their lenders from financial losses due to issues with the property’s title, such as:
Undisclosed Title Defects: Includes unregistered easements or encroachments.
Existing Liens: Covers outstanding debts tied to the property, like unpaid taxes (excluding unpaid utility bills like SaskPower or SaskEnergy).
Title Fraud: Protection against fraudulent activities, which unfortunately are becoming more common.
Errors in Public Records or Surveys: Addresses inaccuracies in documentation.
As of December 2024, title insurance is a one-time cost of approximately $220 and provides coverage for as long as you own the property.
Why Both Matter
While a surveyor’s certificate offers clarity about the physical layout of a property, title insurance ensures financial protection against legal and administrative risks. Together, they provide peace of mind for both buyers and sellers.
Consult a Professional
This overview is a starting point. For tailored advice and a deeper understanding, it’s always wise to consult a real estate lawyer. They can provide the expertise needed to navigate these components confidently and ensure your property transaction is as smooth as possible.
For additional guidance, reach out to our team at Prisma — we’re always here to help!
