Title Insurance- Is it mandatory?

Title Insurance is defined as a policy which covers the condition of ownership or title of property for purchasers. In Ontario it has become popular in recent years. The Law Society of Ontario requires all lawyers to inform purchasers about the advantages of title insurance.

In a typical transaction the lawyer will search the title and then obtain the policy before the closing of the deal. However, there may be situations where the lawyer cannot guarantee the authenticity of the title due to errors in public records, forgery or prior unpaid claims. What does the purchaser do to prevent this scenario?


Buying title insurance is the best bet for the purchaser as it provides an extra level of ownership protection. It supplements the lawyer’s research and recommendations and covers the purchaser for instances not only before but after the closing. Some of the biggest advantages of getting a title insurance policy include:

  • One time premium that can be included with the legal expenses
  • ‘No Fault’ title certification with no deductible
  • Extra coverage against title problems
  • Increased coverage to match inflation
What else can be covered?

Buying a home can be a stressful task. You may rely completely on your lawyer but sometimes there are issues like inaccurate records, frauds or other undisclosed claims that may come to light after the deal has been closed. In such cases having a title insurance policy is the safest decision. It covers the following matters:

  • Fraud in the title
  • Unpaid claims/ taxes
  • Easements
  • Liens
  • Construction liens in priority
  • Encroachments
  • Inaccurate government records
  • Violation of municipal zoning by-laws
  • Invalid mortgage on title
  • If condition of title is defective
  • Errors in surveys
  • Errors or omissions
  • Coverage of legal expenses relating to title issues.
What is not covered?

Structural defects in the building or residence.

Nanda & Associate Lawyers- Guiding you at every step

At Nanda & Associate Lawyers we provide the most affordable and practical solutions for all your property issues. Our lawyers have vast real estate experience and provide the client with a detailed analysis and advice on choosing the title insurance policy that best fits their requirements.

Added Advantage for Purchasers!

Buying a title insurance policy is not expensive. The cost of the actual policy is determined based on the price of the property, the mortgage to be paid and the different municipal taxes. For a property costing $500, 000 the title insurance may range anywhere from $145-$450. With the purchase of title insurance, certain legal disbursements are not required, which makes the actual cost of title insurance attractive to many purchasers.

Buying a title insurance policy gives the purchaser peace of mind and a sense of complete ownership of the property purchased.

Existing Homeowners can Buy Title Insurance

Existing homeowners can now rest all their worries. They can buy title insurance to cover them for all title related issues. The policy coverage is equal to the cost of the property at the time it is purchased and then increases with the increasing cost.