“Title” is a legal term that means you legally own a property. You obtain title when the owner signs the deed (which is a transfer document) over to you. It is then registered in the government’s land registration system.
What is residential title insurance?
Residential title insurance is an insurance policy designed to protect both you as a residential property owner and your lender against financial losses related to the property’s title or ownership.
Do I need title insurance?
In Ontario, you are not required to purchase title insurance. Discuss it with your
lawyer, title insurance company, or insurance agent/broker to understand the types of protection title insurance and if other options exist.
What does residential title insurance cover?
A title insurance policy may provide protection from the following losses:
■ Unknown title defects that prevent clear ownership of the property
■ Existing liens against the property’s title
■ Encroachment issues (e.g. a structure actually on your neighbour’s property)
■ Title fraud
■ Errors in surveys and public records
■ Gap coverage between the time your property purchase is finalized and when your title is registered in Ontario’s land registration system
■ Survey coverage may eliminate the need for a new up-to-date survey of your property and is acceptable to most lenders as an alternative to a new survey or a Real Property Report (RPR)
What types of properties can be insured?
■ houses
■ condominiums
■ cottages
■ rental units
■ vacant land
■ cooperatives
■ leased properties
■ rural properties
How much does it cost?
It varies based on the value of your home and the insurance company you choose. You will also need to pay a one-time fee called a premium.
How long does the coverage last?
As long as you own the property. Most policies extend coverage to your heirs through a will or to a spouse in the event of a divorce.
Where can it be purchased?
Your lawyer or title insurance company can help you purchase title insurance, or you can contact an insurance agent/broker. To see a list of licensed title insurance companies in Ontario, visit the Financial Services Commission of Ontario’s (FSCO) website at www.fsco.gov.on.ca, click on Licensing & Registration, and select Licensed Insurance Companies in Ontario.
Title insurance purchasing tips
