If you’ve purchased a home in Ontario, there’s a good chance you paid for title insurance at closing. Many lawyers include it as part of the closing process, and it’s typically required if you’re taking out a mortgage. Your lawyer mentioned it, you signed the form, and it was folded into your closing costs without much attention. But ask most homeowners what it actually covers—and you’ll likely get a blank stare.
“Title” is your legal right to own and use a property. When you buy a home, your lawyer searches title to confirm the seller has the right to sell and that no outstanding claims exist. Title insurance protects you from problems a search might miss, or that surface after closing.
A standard owner’s policy typically covers: liens not caught during the title search (such as unpaid contractor bills secured against the home), encroachments where a fence or structure crosses a property line, zoning violations or unpermitted work by a previous owner, errors in public records and title fraud.
Title fraud deserves special attention. This is where someone forges your identity to mortgage or sell your home without your knowledge. It is not a hypothetical—it has happened to homeowners across Ontario, and title insurance is one of the few tools that can assist you if it does.
Title insurance is not a home warranty. It won’t cover structural defects, environmental problems, or issues known to you before closing, and it does not replace a home inspection. Many buyers assume title insurance protects them from all property surprises. It does not.
Title insurance is purchased once at closing for a one-time premium, typically for a few hundred dollars, which varies with the purchase price of your home, and covers you for as long as you own the property. No renewals, no ongoing costs.
Title insurance is a smart, affordable layer of protection for what is likely the largest purchase of your life. But like any policy, it only works if you understand it. Before your next real estate transaction, ask your lawyer to walk you through your coverage. You may be glad you did.
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