A one-time insurance policy purchased at closing that protects the buyer against unknown title defects, liens, encroachments, fraud, and survey issues that existed before you took ownership. Unlike other insurance that protects against future events, title insurance covers problems that already exist but have not yet been discovered. It remains in effect for as long as you own the property.
Why It Matters
Title insurance is a standard part of closing in Ontario and typically costs $300 to $500 for a one-time premium. It protects you if someone forges documents to steal your title, if a previous owner did unpermitted work, or if a neighbour's fence is actually on your property. Most real estate lawyers strongly recommend it, and many lenders require it.
Real-World Example
You purchase a semi-detached in The Beaches for $1,050,000. Six months after closing, a survey reveals your neighbour's fence extends two feet onto your property. Without title insurance, you would face legal costs of $5,000 to $15,000 to resolve the boundary dispute. With your $350 title insurance policy, you file a claim and the insurer covers the legal fees and any settlement costs related to the encroachment.
Ontario & GTA Context
Title fraud has become a growing concern in the GTA, where criminals forge ownership documents and mortgage properties without the real owner's knowledge. Ontario's Land Titles system provides some protection, but title insurance adds a critical layer of coverage. Most Ontario real estate lawyers now recommend title insurance as standard practice, and it has largely replaced the need for an up-to-date survey, which can cost $1,500 to $3,000 in the GTA.
How It Works in Practice
Your real estate lawyer will typically arrange title insurance as part of the closing process. Review the policy exclusions carefully -- most policies exclude known defects, environmental contamination, and issues you were aware of before purchasing. Keep your policy documents in a safe place, as coverage lasts for as long as you own the property.
Common Questions
Is title insurance mandatory when buying a home in Ontario?▾
Does title insurance replace the need for a survey?▾
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