Title insurance is an insurance policy which provides coverage for risks to title in real estate transactions. Typically, title insurance policies include unpredictable issues including

Practically speaking, if there is an issue on title that only becomes known after the transaction closes, the title insurer will step in to either remedy the defect on title or compensate the policyholder (assuming that the defect is covered by the policy).

Types of Title Insurance Policies

Generally, there are two different types of title insurance policies

When advising our real estate purchaser clients, we strongly recommend purchasing title insurance at the time of closing. It offers significant protection for a modest policy fee of typically between $400 – $1,700. The cost of a specific policy depends on several factors, including the geographic location of the property and the amount of any mortgage balance on the property.

What Does Title Insurance Protect Against?

Title insurance protects against the following risks:

A title insurance policy will not protect against the following:

Providers of Title Insurance

In Ontario, there are several insurance companies licensed to provide title insurance:

In my real estate practice advising on purchasing, sale, refinance & lending, I advise my clients on navigating title insurance policies, including lender policies. Contact me if you wish to discuss anything in this article or real estate law in general.

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