Title Insurance in Ontario: Complete Protection for Your Property
Title insurance protects property owners and mortgage lenders against financial losses resulting from title defects, survey issues, fraud, forgery, and certain encumbrances that existed before you purchased the property. Unlike a title search, which identifies known issues by searching Ontario’s Land Registry System, title insurance protects against hidden problems that a search simply cannot detect.
Title insurance is not required by law in Ontario, although some lenders require a lender’s policy as a condition of mortgage financing. We recommend it for every buyer, even if you are paying cash. A single policy protects you for as long as you own the property, covering both the full purchase price and your legal costs.
What Title Insurance Covers
- Title defects that existed before you purchased
- Fraud, forgery, and impersonation affecting title
- Survey and boundary issues including encroachments
- Outstanding work orders from the municipality
- Certain liens and encumbrances not excepted in the policy
- Legal costs to defend your title if challenged
What Title Insurance Does Not Cover
Title insurance does not cover issues that arise after you purchase the property, such as new liens you create by not paying contractors, zoning bylaw changes, environmental contamination, or defects that you knew about before closing and agreed to accept. We review the policy exclusions with you. Read our full guide to title insurance in Ontario.
Frequently Asked Questions
Do I need title insurance if I have a real estate lawyer?
Yes. Your lawyer conducts a thorough title search to identify known issues, but title insurance protects against hidden defects, fraud, and survey issues that a title search cannot detect. The two work together to provide complete protection.
How much does title insurance cost and how long does it last?
Title insurance is a one-time premium that depends on the property value and the insurer. Your lawyer confirms the exact premium before closing. This is a one-time premium for coverage that lasts as long as you own the property. When you sell, the new buyer purchases their own policy.
Can I buy title insurance after closing?
Some insurers allow post-closing policies, but coverage may be more limited and certain risks may be excluded. It is best to arrange title insurance before or at closing for the broadest coverage.
Does title insurance cover survey issues?
Yes. Title insurance covers losses from survey-related issues such as encroachments, incorrect boundary lines, and structures built over property lines, provided these issues existed before your policy effective date.
Our office is in Vaughan, and we serve clients across Toronto and the GTA, including North York, Scarborough, Etobicoke, Mississauga, Brampton, Markham, Richmond Hill and Newmarket. See all of our areas we serve.
Get a Free Legal Consultation
Contact Sarkaria Sethi LLP at (647) 696-8069 or reach out online. We serve clients in English, Hindi, and Punjabi.
Legal Information, Not Legal Advice. This page provides general information about real estate legal services in Ontario. Every real estate transaction is unique, and you should consult with a qualified real estate lawyer about your specific situation before taking any action.