When buying real estate, whether it’s a home or a commercial space, there’s a lot more to consider than just location and price. One of the most critical (yet often overlooked) aspects of property ownership is protecting your legal claim to the land. That’s where title insurance comes in. It’s a one-time purchase that can safeguard your investment from hidden risks tied to the property’s history.
What Exactly Is Title Insurance?
Title insurance is a policy that protects you and your lender against financial losses tied to problems with a property’s ownership record. For a single payment at the time of closing, you get ongoing protection for as long as you own the property. This includes coverage for:
- Title fraud
- Undiscovered title defects
- Outstanding property taxes or utility bills
- Disputes over boundaries or encroachments
- Errors in public records or surveys
Think of it as a safety net for the unseen issues that could threaten your right to sell, lease, or borrow against your property in the future.
Understanding “Title”: The Foundation of Ownership
Every piece of land in Ontario is recorded in a public registry. This record known as the title tracks who owns the property and what legal rights others might have in relation to it. For example:
- When you buy a home, a document called a Transfer is registered to show that ownership has changed hands.
- If you take out a mortgage, a Charge is added to title to show your lender’s financial interest.
- Old documents are removed from active view but remain searchable in the archives.
What Does a Title Search Do?
Before you close on a property, your lawyer will conduct a title search to ensure that you’re buying a property with no legal baggage. This search can reveal things like:
- Unpaid mortgages
- Construction liens
- Unreleased agreements or outdated restrictions
If issues are found that can’t be resolved before closing, title insurance may still allow the transaction to go ahead—often for an extra premium.
Pro tip: If your lawyer misses something critical in the search, your policy may not cover it. This is why choosing an experienced law firm like Amik Law makes all the difference.
Off-Title Issues? Title Insurance Has Your Back
Not every property issue shows up in a title search. Some problems—like unpaid water bills, illegal construction, or a neighbour’s fence encroaching onto your land—are known as off-title issues. Many title insurance policies offer protection against these surprises, even though they aren’t part of the title record.
The Risk of Title Fraud
Title fraud is when someone uses fake identification or forged documents to take control of your property—either by transferring ownership to themselves or securing a fraudulent mortgage. Because accessing title information costs money, most homeowners rarely check their title, giving fraudsters a window of opportunity.
If you’re ever a victim, title insurance can cover legal fees, restoration of title, and financial losses. There’s also the Land Titles Assurance Fund for additional support—but title insurance helps you avoid the uphill battle altogether.
Is Title Insurance Mandatory?
No, you aren’t legally required to buy title insurance—but if you’re getting a mortgage, your lender probably will. They may accept either:
- A title insurance policy, or
- A lawyer’s opinion on title
That second option requires your lawyer to do a deep dive—water arrears searches, zoning checks, building permit reviews, and more. These searches can be costly, and they don’t offer protection against future title fraud. That’s why most lawyers (including ours) recommend a title insurance policy—it’s faster, more affordable, and offers broader protection.
What Isn’t Covered?
Title insurance is powerful, but not all-encompassing. Common exclusions include:
- Known defects disclosed before purchase
- Environmental contamination
- Indigenous land claims
- Property measurement discrepancies discovered by a new survey
- Zoning violations not listed on public records
Always read the fine print, and ask questions if something’s unclear.
Why Choose Amik Law for Title Insurance?
At Amik Law, we understand how vital title insurance is to your peace of mind. That’s why we partner with top-tier insurers and tailor your policy to your specific property and needs. Our legal team ensures every step of your closing is smooth, secure, and compliant—so you can move forward with confidence.
Have questions about title insurance or your real estate transaction? Reach out to Amik Law today and let us protect what matters most – your investment.
