Title Insurance for Ontario real estate
Because buying a home is such an important investment, you want assurance that title is yours “100%” (except for your new mortgage) . You don’t want to find out, after closing, that an old lien was never discharged, that the previous owners didn’t pay their property taxes, or that someone has a claim against your land.
Traditionally, Ontario purchasers have relied solely on their lawyer’s “legal opinion” that they have “good and marketable title.” The lawyer reviews the documents in the registry/land titles office, and writes the municipalites to confirm that there are no claims against the property. Unfortunately, no lawyer can assure you that there is absolutely no chance of an error in the government records, that there are no undisclosed claims, or that what appears to be the signature of the prior owner or consenting spouse is a true signature. Thankfully, problems are rare.
With the encouragement of the Ontario law society, purchasers can now choose “title insurance” in addition to their lawyer’s assistance (title insurance does not replace the role of the lawyer, it simply adds assurance to the client). The cost can be minimal because your lawyer will save various out-of-pocket expenses. The benefit to you with title insurance is that, except for such matters such as native land claims, environmental compliance and the like, you will insured for 100% good title.