Dec 16 | Posted by Barry

Much like Moving Insurance, which I discussed back in October, Title Insurance is another type of auxiliary safety net to ensure that all your bases are covered. In a nutshell, title insurance guarantees that the person selling the house to you actually owns the house, although many other variables are also contained, most critically any outstanding mortgages, property taxes, third-party claims or liens held against the property. Largely optional, mortgage and institutional lenders often mandate title insurance prior to the transfer of property.

Typically, it is purchased through your lawyer as an adjunct to their expertise and legal opinion which confirms or denies the good standing of a property’s title. The attorney’s role is nevertheless irreplaceable as they still have to research and certify the status of the title before any policy can be approved. Even though title insurance is primarily designated for purchasers, it is also offered to existing homeowners for the same amount of protection.

Title insurance policies are designed to fill in the gaps of your lawyer’s research into the integrity of your property. Here’s a more detailed list of what’s covered:

  • title defects
  • lawsuits attacking the title
  • mortgage invalidity
  • liens
  • easements
  • encroachments
  • unpaid property taxes from prior owner
  • fraud, forgery or omissions, both for the prior owner and solicitor
  • breach of municipal zoning by-laws or development agreements
  • survey errors or illegibility


As a house is a substantial of money changing hands, this additional coverage makes perfect sense. It can be included in a purchaser’s total legal costs with no significant deductibles incurred. And for buyers who do not include it – do so at your own peril. Title insurance is a relatively inexpensive form of coverage that may save you a very big headache down the road – something that I would definitely recommend. Feel free to discuss this with me or your lawyer to ensure that you are fully covered.