Title insurance protects against hidden risks in a property’s ownership history that aren’t discoverable through standard searches:
• Title fraud — someone forges documents and transfers/mortgages “your” property
• Outstanding liens — a contractor the previous owner didn’t pay comes after your property
• Unpermitted renovations — prior work done without permits creates municipal orders
• Boundary encroachments — a fence or structure is on the neighbor’s land
• Survey errors or unknown easements from historical records

There are two types: Owner’s Policy protects you (the homeowner) for as long as you own the property — one-time premium of $300–$500. Lender’s Policy protects only your mortgage lender — required by most banks, separate cost. The Lender’s Policy does not protect you at all. Make sure you purchase both. The Owner’s Policy is what most lawyers strongly recommend, and it’s genuinely excellent value at this price point.

Canadian title fraud cases are well-documented. Criminals impersonate homeowners using forged IDs and fraudulent notarizations to sell or mortgage properties they don’t own. Owners have returned from trips abroad to find their home has been sold. With an Owner’s Policy, the title insurer covers legal costs and compensation — you don’t face this nightmare alone and out-of-pocket.

For a $300–$500 one-time premium on a property worth $700,000+, title insurance is one of the best-value purchases in a real estate transaction. I recommend it to 100% of my clients. The major Ontario providers are FCT (First Canadian Title), Stewart Title, and Chicago Title — your lawyer will facilitate the purchase during closing. Don’t skip the Owner’s Policy to save a few hundred dollars.

Title Insurance vs. Land Survey

AZ