Mortgage Blog

Property Insurance Options – RPR, Title and Western Protocol

By June 19, 2014May 25th, 2022No Comments

A lot of recent buyers of home and residential property are thinking of various optional ways for home and  security. When it comes to closing on a property, there are 3 general methods for securing the transaction with respect to the property specifications. It also provides some peace of mind for some or all parties involved. There’s the RPR (Real Property Report), title insurance, and Western Protocol. Depending on the transaction, there are pros & cons of each of them. Let us discuss about these 3 methods in details and find out the best one among them.

Complications of RPR

When the RPR report is being completed by the builders and developers, it is necessary that it is handed along with a permit letter from the Municipal authorities of the region. This letter states that all the modifications and structures on the land have been made while being complied with the local laws and regulations. However, if the seller of the property makes certain changes and modifications on his own, the entire thing of the permit and the RPR becomes futile. It is then up to the buyer to arrange for a new RPR which can actually get him security for his new house.

The problem is that the buyer will find it rather expensive as well as time-consuming and tedious to make arrangements for the RPR in the future as well. In case the buyer does not arrange for an update or a new version of the RPR, the seller will be compelled to make compliance with the local laws and rules and this will be expensive for them as well in turn. It is tough to get the Alberta Land Surveyor to do a yet another survey and complete the report and make one more report. Therefore, when compared with these difficulties, the Title insurance option sounds a better one.

The Features Of Title Insurance

Alberta Land laws are offering title insurance guarantees that help to skip the complications and bureaucratic hurdles of the Real Property Report. In the case of the Title Insurance scheme, the improvements that will be made by developers and sellers will be fully made as to comply with the terms of the zoning laws of the region. This means that the improvements of the sellers will be declared perfectly legitimate. Also, the protected zones will now be safely and successfully guarded against all kinds of encroachments from property developers for any reasons whatsoever. This is the real and most important advantage that Title Insurance will offer.

The Pros Of Title Insurance

Firstly, a Title Insurance helps to save time and money, both of which can be uselessly wasted in getting a RPR ready for unexpected problems like no permits for new garages and yards. The second benefit is that it will act as a perfect defense hedge against problems like mortgage, title frauds, developer or builder liens or some hidden developments and structures. The Title Insurance will guard you in such situations perfectly. Finally, there is the advantage that the title insurance will make all encroachers pay for whatever damage they do to the property.

Title Insurance Vs Western Protocol

Title Insurance also stands out as a greater and better alternative for Western Protocol insurance as well. First of all, it is extremely applicable to everyone- from single family residential property, multi-unit residential land, and commercial and agricultural land as well. Western Protocol schemes are not that applicable and versatile enough as well. The Title Insurance also can insure property owners over known defects, something which Western Protocol insurance cannot do. Also, Western Protocol does not include mortgage funds as well as other damage protection means as well.

About Western Protocol

The main aim of the typical Western Protocol insurance policy is to allow the property and real estate lawyer to release the proceeds of the mortgage case without the need to submit an updated and renewed Real Property Report as well. Other than this core advantage, it does not really offer the same wide applicability which seems to be a special feature of the Title Insurance schemes and policies offered by the people as well. So, Title Insurance is the option that makes the most sense.

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