07/04/2025
TITLE INSURANCE is required when purchasing a home in Ontario. What is it? Read on:
This Is What Title Insurance Actually Covers
By Zachary Soccio-Marandola - Lawyer• 4 Jul 2025
Reading Time: 4 minutes
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KEY TAKEAWAY
Understanding what Title Insurance really covers helps you explain closing costs clearly, answer client questions with confidence, and deliver value when it counts most.
Title insurance is one of those things most people have heard of… but few fully understand.
It's typically used when a buyer is purchasing or refinancing a property. In Ontario, lenders require it on virtually every mortgage deal.
Even without a mortgage, most lawyers still require it — because the cost of running all the searches for a full legal opinion would be higher than the one-time insurance premium.
But the real question is… what does it actually cover?
Every policy is different, and the list below isn’t exhaustive — but these are the most common protections your clients are actually getting:
PRE-EXISTING DEBTS TIED TO THE PROPERTY
If the previous owner left behind unpaid property taxes or utility bills, your client won’t be on the hook. Title insurance would cover it.
UNPERMITTED RENOVATIONS
If a past owner made changes without permits — and the city now wants them fixed or removed — title insurance can help cover the cost to comply.
ENCROACHMENTS
If fences, sheds, or structures cross property lines, title insurance helps cover the cost to move or resolve them.
Survey or title errors
If a title issue or survey mistake surfaces after closing — like a wrong boundary or registration problem — the insurer steps in to correct it.
LAWYER MISTAKES
If we make an error related to title that causes a problem later, the insurer could cover that too.
TITLE FRAUD
If someone steals your client’s identity and fraudulently transfers or mortgages their home, the insurer pays the legal costs to restore title.
GAP COVERAGE
There’s a small window between closing and registration. If something goes wrong in that gap, coverage still applies.
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TITLE INSURANCE is about covering the stuff no one sees coming.
One policy, one payment, and it stays in place for as long as your client owns the home.
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Additional Notes:
• It’s a one-time fee. No renewals, no recurring charges.
• Condo policies typically cost less — there’s no land component, therefore fewer risks to insure.
• If your client didn’t get title insurance when they bought, they may still be able to add it now with a Homeowner Policy.
Want to Check the Cost?
Our Legal Fee Calculator gives an instant breakdown of title insurance premiums — along with all legal fees, disbursements, and taxes.
Next time you’re helping a buyer estimate closing costs, run the numbers in real time.
It’s built to make your job easier.
Written by
Zachary Soccio-Marandola
Real Estate Lawyer
Direct: (647) 797-6881
Email: [email protected]
Website: socciomarandola.com
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This article is intended to convey general information about legal issues as of the indicated date. It does not constitute legal advice and must not be treated or relied on as such. Always obtain the advice of your own lawyer with respect to actions that could have legal consequences.
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