Title Insurance Coordination

Title insurance is one of the most important protections available to property buyers and mortgage lenders in Ontario. It guards against a range of risks that can threaten the value of your investment and the enforceability of your mortgage — including title fraud, forgery, undisclosed encumbrances, survey irregularities, and off-title defects that are not discoverable through a standard title search. At Goldstone Law Professional Corporation, we arrange comprehensive title insurance coverage through leading Canadian title insurers on every real estate file we handle. While title insurance is not legally mandatory in Ontario, it is now standard practice in virtually all residential and commercial real estate transactions and is required by most institutional lenders as a condition of providing mortgage financing. Understanding what title insurance covers — and equally, what it does not cover — is an important part of the home buying process.

What Title Insurance Covers

Title Fraud and Forgery

Title fraud — in which a fraudster registers a forged transfer or mortgage against your property — is a real and growing concern in Ontario’s real estate market. Title insurance protects registered property owners and lenders against financial loss resulting from title fraud and forgery, including the fraudulent transfer of title and the registration of unauthorized mortgages against the property.

Undisclosed Encumbrances

Despite a thorough title search, some encumbrances may not appear on the land registry — for example, easements created before the current title system was established, certain municipal charges, or interests that were not properly registered. Title insurance provides coverage against financial loss arising from encumbrances that were not disclosed and could not have been discovered through a standard search.

Survey Irregularities and Encroachments

Without a current survey, it can be difficult to confirm that the structures on a property are within the property’s boundaries, that fences are correctly located, and that there are no encroachments from or onto neighbouring properties. Title insurance covers losses arising from certain survey irregularities and encroachments that would have been revealed by a current survey of the property.

Off-Title Defects

Off-title defects — such as outstanding work orders, building permits that were not closed, zoning violations, or local improvement charges — may affect the property without appearing on the land registry title. Title insurance provides protection against financial losses arising from certain off-title matters that were not discovered during the transaction.

Post-Closing Matters

Title insurance continues to protect the insured after closing. If a title issue that existed at the time of the transaction is discovered after closing — for example, an unreleased mortgage that was overlooked in the title search, or a planning act violation that comes to light during a future sale — the title insurer will work to resolve the issue and compensate the insured for any resulting financial loss, subject to the policy terms and exclusions.

Types of Title Insurance Policies

Owner’s Policy

An owner’s title insurance policy protects the property buyer against title risks affecting the property and is typically issued for a one-time premium at closing. The policy amount is equal to the purchase price and the coverage is permanent — it continues to protect the owner for as long as they own the property and, in some circumstances, even after they sell.

Lender’s Policy

A lender’s (mortgagee’s) title insurance policy protects the mortgage lender against title risks affecting the enforceability and priority of the mortgage. Most institutional lenders require a lender’s title insurance policy as a condition of providing mortgage financing. A lender’s policy does not protect the borrower — it protects only the lender — which is why buyers are encouraged to obtain a separate owner’s policy.

Existing Homeowner Policy

Homeowners who did not obtain title insurance when they purchased their property may be eligible for retroactive title insurance coverage. This type of policy — sometimes called an existing homeowner policy — provides protection against title risks even though the property was purchased without the benefit of title insurance at the time.

Title Insurance Providers We Work With

Goldstone Law works with all of the leading title insurance providers operating in Canada, including FCT (First Canadian Title), Stewart Title Guaranty Company, Chicago Title Insurance Company, and Travelers Canada. We review each insurer’s coverage terms and pricing and select the most appropriate coverage for each client’s specific transaction and circumstances.

Frequently Asked Questions — Title Insurance Coordination

Is title insurance mandatory in Ontario?

Title insurance is not legally required in Ontario, but it is required by most institutional mortgage lenders as a condition of mortgage financing, and it is strongly recommended for all buyers. Given the modest cost of an owner’s title insurance policy relative to the value of a real estate purchase and the protection it provides, obtaining title insurance is considered standard practice in Ontario.

What does title insurance NOT cover?

Title insurance has exclusions and limitations that vary by policy. Generally, title insurance does not cover defects that were known to the buyer at the time of purchase, environmental contamination, Indigenous land claims, and certain other matters specifically excluded under the policy. We review the policy terms with our clients so they have a clear understanding of what is and is not covered by their specific policy.

How much does title insurance cost in Ontario?

Title insurance premiums in Ontario are a one-time cost paid at closing. The premium amount depends on the purchase price of the property and the type of policy. For a typical residential property, the owner’s title insurance premium generally ranges from a few hundred to approximately one thousand dollars — a modest amount relative to the value of the protection provided.

Contact Goldstone Law today. We arrange comprehensive title insurance coverage through leading Canadian providers on every real estate transaction, giving buyers and lenders the protection they deserve.