Title Searches & Due Diligence

A title search is the foundation of every real estate transaction. Before you purchase a property, refinance your mortgage, or register a private mortgage, it is essential to confirm that the title to the property is clean, clear, and free of undisclosed encumbrances. At Goldstone Law Professional Corporation, we conduct thorough title searches and comprehensive due diligence on every real estate file we handle, giving clients the confidence they need to proceed with their transactions. Title issues are more common than many buyers realize. Unreleased mortgages, judgment liens, construction liens, unpaid property taxes, easements, rights of way, restrictive covenants, and planning act violations can all appear on a title search and may affect your ability to obtain clear title or financing. Identifying and resolving these issues before closing — rather than discovering them afterward — is one of the most valuable services a real estate lawyer provides.

What Is a Title Search in Ontario?

In Ontario, all interests in land are registered on the province’s land registry through a platform called Teraview. A title search involves searching the registered interests against a property’s PIN (Property Identification Number) to identify every instrument currently registered on title, including transfers, mortgages, charges, discharges, liens, easements, notices, and other encumbrances. Ontario operates under the Land Titles system for most properties, which provides a state guarantee of title for registered interests. However, the Land Titles system does not guarantee against all risks — easements, rights of way, and interests created by operation of law (such as certain municipal charges or environmental orders) may affect a property without appearing on title. This is one reason why title insurance, in conjunction with a title search, is an important protection for buyers and lenders.

What We Search and Review

Registered Title Instruments

We search all registered instruments on title, including the chain of title going back to the root of title, all currently registered mortgages and charges, any discharges (to confirm they are properly registered), Construction Act liens, Execution (judgment) liens registered against current or prior owners, easements, rights of way, and restrictive covenants, and any planning act compliance documents, such as references to subdivision or consent.

Off-Title Searches

A thorough due diligence review goes beyond the title search itself. Off-title searches are searches conducted against sources outside the Land Registry that may reveal issues affecting the property. These include: property tax status searches to confirm there are no outstanding tax arrears; searches for outstanding work orders or building permits that have not been closed; local improvement charges or special levies; conservation authority restrictions or flood plain designations; utility easements and right-of-way agreements; and municipal zoning compliance confirmation.

PPSA Searches

For commercial real estate transactions, we also conduct searches against the Personal Property Security Act (PPSA) registry and related corporate databases to identify any personal property security interests or unpaid obligations of the vendor that could affect the transaction.

Title Defects and How We Resolve Them

When a title search reveals a defect or encumbrance, our role is to assess its impact on your transaction and work toward a resolution before closing. Common title issues and how they are typically addressed include:

Unreleased Mortgages

An old mortgage that was paid off but never formally discharged from title is one of the most common title issues encountered in Ontario. We contact the lender (or their successor) to obtain a discharge and register it before closing. In some cases, where the original lender no longer exists, a title insurance policy may be used to insure over the defect.

Construction Liens

A construction lien registered against a property by a contractor or subcontractor who has not been paid can affect the transfer of clean title. We work with the vendor’s lawyer to ensure that any liens are discharged, vacated by court order, or properly secured before closing.

Execution Liens

A judgment registered against a current or former owner may attach to the property. We search the execution registry and, if judgments are found, determine whether they affect the current owner and work toward having them discharged or addressed before closing.

Easements and Rights of Way

Easements and rights of way grant third parties the right to use a portion of the property — for example, a utility easement for underground cables, a right of way for a neighbouring property owner, or a drainage easement. We identify all registered easements and advise clients on their practical implications for the use and enjoyment of the property.

Title Insurance: Complementing the Title Search

Title insurance provides an important layer of protection against title risks that may not be discovered through even the most thorough title search — including fraud, forgery, unknown easements, off-title defects, and certain survey irregularities. We coordinate title insurance through leading Canadian providers, including FCT (First Canadian Title) and Stewart Title, for both buyers and lenders. Title insurance is not a substitute for a proper title search; it is a complement to it.

Frequently Asked Questions — Title Searches & Due Diligence

How long does a title search take in Ontario?

A standard title search in Ontario can typically be completed within 1 to 3 business days. More complex searches — such as those involving older properties with lengthy title histories, multiple registered instruments, or off-title complications — may take longer. We begin title searches as early as possible in the transaction timeline to leave adequate time to address any issues that are discovered.

What is the difference between a title search and title insurance?

A title search is an active review of the registered title to the property, identifying all current encumbrances and instruments registered against it. Title insurance is an insurance policy that protects against certain risks that may not be discovered through a title search — including fraud, forgery, unknown liens, and off-title matters. Both are important components of a comprehensive real estate due diligence process, and both are standard in Ontario real estate transactions.

Can title issues prevent a closing from happening?

Yes, in some cases. If a title defect is discovered that cannot be resolved before the scheduled closing date — such as a disputed lien, a complex easement issue, or a planning act violation — the closing may need to be extended to allow time for resolution. In rare cases where a title defect is fundamental and cannot be resolved, a buyer may have grounds to terminate the transaction. We work proactively to identify and address title issues well before the closing date to minimize the risk of delays.

Contact Goldstone Law for comprehensive title search and due diligence services. We protect buyers, sellers, and lenders throughout Ontario with thorough, professional title review on every transaction.