What Is Title Insurance in Ontario — and Why Should I Get It?
By Jake Fenton
When you’re buying a home, you probably expect to pay for the big things — the house itself, legal fees, movers, maybe even a celebratory pizza on closing day. But somewhere in your lawyer’s paperwork, you’ll likely spot a line item for title insurance.
If your first reaction is, “Wait, what’s that?” — don’t worry, you’re not alone.
Let’s break it down.
First of All… What Is Title?
In simple terms, “title” is your legal ownership of a property. When you buy a home, you’re not just getting a building — you’re getting legal rights to the land it sits on. That’s what “title” refers to.
But here’s the thing: title can come with surprises.
We’re talking about:
Undiscovered liens on the property (like unpaid taxes or contractor bills)
Errors in the public records
Unknown easements or restrictions on how you can use your land
Fraudulent activity (yes, identity theft is alive and well in real estate)
And once the deal closes, if a problem with your title pops up… it becomes your problem.
Enter: Title Insurance
Title insurance is a one-time purchase (usually under $500) that protects you from all those title-related surprises that could pop up after you buy the property.
Think of it as a safety net for your ownership rights.
In Ontario, it’s not legally required — but it’s highly recommended. Most lenders will actually insist you have it before they fund your mortgage. And for good reason: it protects them and you from a lot of expensive, stressful problems.
What Does Title Insurance Cover?
Every policy is a little different, but generally, title insurance can cover things like:
· Unknown title defects (like someone else claiming an interest in your land)
· Existing liens against the title (say, from a previous owner’s unpaid bills)
· Encroachment issues (like if your neighbour’s garage creeps onto your lot)
· Errors in surveys or public record
· Title fraud or forgery
· Problems that would have shown up in a property search — but didn’t
Basically, if something pops up that messes with your ability to own or use your home the way you expected, title insurance can help fix it — or cover the cost.
What Title Insurance Doesn’t Cover
Title insurance isn’t a blank cheque. It won’t cover:
· Problems you were aware of before buying
· Environmental issues (hello, mystery oil tanks)
· General wear and tear or damage to the home
· Zoning violations caused by you after you move in
So, while it’s a powerful protection tool, it’s not a substitute for a home inspection or legal advice.
Do I Really Need It?
Let’s put it this way: you wouldn’t drive a car without insurance — even if you’re a great driver. Title insurance works the same way. Even if everything looks good on the surface, things can (and do) go wrong.
We’ve seen cases where title insurance saved buyers thousands — sometimes tens of thousands — in legal bills, court fees, or settlement costs.
And because it’s a one-time cost, it’s one of the best low-cost, high-value decisions you can make in the entire transaction.
The Bottom Line
Buying a home is a huge investment. Title insurance helps protect that investment from some of the weird, frustrating, and totally unexpected legal curveballs that real estate can throw at you.
At Passageway Law, we help you understand exactly what you’re buying — and how to protect it. We’ll walk you through your title insurance options, explain what’s covered, and make sure your property rights are secure.
Have questions about title insurance or your upcoming closing?
We’re here to help — with clear answers, practical advice, and zero pressure.
Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Title insurance policies vary, and your needs may be unique. Speak with a real estate lawyer to get advice tailored to your transaction.