• Tajinder Kaur Sivia
• 20-Feb-2025

Buying a home is a big investment. You want to protect it. An important way to do that is through title insurance. It helps homeowners and lenders from property ownership problems. So, if you are buying a home in Ontario, here is what you need to know about title insurance and where to get it.

 

What is Title Insurance?

Title insurance provides your protection from losses of the kind associated with a property's title. Fraud, unpaid debts, or legal claims on the property are some of these problems. It gives you a sense of security when you buy a home.

 

Errors in public records, unknown liens, and encroachments are covered. It also is a protection against fraud and forgery. Title insurance will assist if anyone tries to claim ownership of your property.

 

When you get a mortgage, title insurance is often required of lenders. Yet homeowners should take out a policy as an extra safeguard. It is a single payment that continues as long as you own the home.

 

Property ownership stays safe with the help of title insurance. It is a smart investment for every homebuyer.

 

Why Do You Need Title Insurance?

Title insurance protects you against hidden risks that could take your homeownership. Second, it gives them financial security and legal protection against title-related issues. Here’s why you need it:

 

Protection Against Fraud – Title fraud is a growing problem, so buyers should take protection against it into account. The documents that scammers forge can be used to transfer ownership and take loans on your property. If you’re left unprotected, you could lose your home or stand to be racking up serious legal bills. With title insurance, you have protection of your rights.

 

Coverage for Title Issues –In some cases, prior owners claim not to have secured debts associated with the property. If you don’t pay your taxes, file a lien, or are exposed to a legal claim you become liable for it. These issues are covered by title insurance to prevent unwanted money drains.

 

Legal Cost Coverage – Legal fees can be costly if someone challenges your home’s ownership. Title insurance helps pay for attorneys, court costs, and other legal expenses. It ensures you don’t lose money defending your rights.

 

Mandatory for Lenders – Most lenders require title insurance before approving a mortgage. It protects them from financial loss if ownership disputes arise. Without it, securing a home loan may be difficult.

 

Title insurance provides peace of mind. It ensures your investment is safe from past mistakes, fraud, and legal troubles. With this protection, you can confidently own your home.

 

Where To Buy Title Insurance in Ontario

You can buy title insurance from trusted companies, real estate lawyers, or mortgage lenders in Ontario. Each option has its benefits. Choosing the right provider ensures that your property remains secure.

 

Title Insurance Companies

There are several trusted title insurance providers in Ontario. These companies specialize in protecting homeowners and lenders from title-related issues.

 

• First Canadian Title (FCT)

  FCT is one of the most well-known title insurance companies in Canada. They offer protection against fraud, title defects, and unpaid liens. Their policies are available for both residential and commercial properties.

   

• Stewart Title

  Stewart Title provides comprehensive coverage for homeowners, lenders, and real estate professionals. Their policies include fraud protection, legal coverage, and title dispute resolution.

   

• Chicago Title

  Chicago Title is another leading provider that offers protection against title defects, boundary disputes, and municipal issues. Their policies help homeowners avoid unexpected legal costs.

   

• Lawyers’ Professional Indemnity Company (LawPRO)

  LawPRO offers title insurance through its TitlePLUS program. The Law Society of Ontario backs this insurance. It covers legal services and title-related risks for homeowners.

   

Choosing a reputable title insurance provider ensures that you are fully protected against ownership risks. Each of these companies has different coverage options, so it’s important to compare policies before making a decision.

 

Real Estate Lawyers

Most homebuyers purchase title insurance through their real estate lawyer. Lawyers play a key role in the closing process, ensuring that all legal documents are in order. When you hire a lawyer for your home purchase, they will explain your title insurance options and help you choose the best policy.

 

Lawyers often work with leading title insurance providers like FCT, Stewart Title, and TitlePLUS. Since they handle the legal aspects of your home purchase, they can identify potential risks and recommend the right coverage. Buying title insurance through a lawyer can be more convenient because they handle the paperwork for you.

 

They can also serve as lawyers, which can help them in giving legal advice on title-related issues. Your lawyer can tell you how to use your title insurance policy should any problems arise during or after your purchase. This makes real estate lawyers a reliable source to buy title insurance.

 

If you are buying a home in Ontario, ask your lawyer about title insurance early in the process. They will ensure that you get the right coverage to protect your property.

 

Mortage Lenders

Title insurance is sometimes provided by mortgage lenders when arranging a mortgage. It is done usually to protect the lender’s financial interest in the property. If you are getting a mortgage, your lender might insist on a lender’s title insurance policy.

 

A lender title insurance policy will protect the bank or financial institution in the event of a title issue. Nevertheless, it doesn’t protect the homeowner fully. If you want personal coverage, you will probably have to get an additional owner’s title insurance policy.

 

Lender-arranged title insurance is convenient, but it is important to know its limitations. Your homeownership rights will not be saved from the policy. If the policy does not include coverage for homeowners, always ask your lender this question. Otherwise, you could get another title insurance from a trusted provider or through a lawyer.

 

How Much Does Title Insurance Cost?

The price of title insurance in Ontario depends on the location of the home, its value, and the provider. For a standard residential property, the price typically ranges from $250 to $500. Normally, costs are higher for higher-value homes or commercial properties. Payments for this title insurance are one-time, and there are no recurring fees.

 

This payment extends for as long as you own the property. Certain providers offer added coverage for certain risks, making the price rise. You can find the best deal by comparing different providers, policies, and so on. The cost of title insurance does exist, but it provides valuable protection against financial risk.

 

What Does Title Insurance Cover?

You should get title insurance before closing on your home purchase. Your lawyer will help set it up as part of the closing process. If you already own a home and don’t have title insurance, you can still purchase it anytime. Title insurance provides broad protection, including:

 

• Errors in public records – Mistakes in property records that could affect ownership.
• Unknown liens – Unpaid debts from previous owners that may impact your property.
• Encroachments – If a neighbor's structure extends onto your property.
• Fraud and forgery – Protection against fraudsters trying to steal your home title.

 

How to Choose the Right Insurance Provider?

Choosing the right title insurance provider is important. Here are key factors to consider:

 

• Reputation – Choose a provider with a strong history and positive reviews. A trusted company ensures reliable coverage.
• Coverage Options – Read the policy carefully. Make sure it covers fraud, title defects, unpaid liens, and other risks.
• Price  – Compare prices from different providers. Costs may vary based on the property and coverage level.
• Legal Advice – Talk to your real estate lawyer. They can help you understand the best options for your needs.
• Customer Service – A good provider should offer clear information and support if you need to make a claim.
• Policy Flexibility – Some companies offer extra coverage. Check if you can customize your policy.

 

Take your time to compare options. A good title insurance policy will protect your home and investment.

 

Get Expert Help from House Closing

Buying a property can be overwhelming. You need expert guidance to ensure a smooth process. Title insurance is an essential safeguard for protecting your investment. Whether you choose to buy from a title insurance company, through your real estate lawyer, or via your mortgage lender, make sure you understand your policy. A trusted provider will give you the right coverage for your needs.

 

Buying a property can be overwhelming. You need expert guidance to ensure a smooth process. House Closing is here to help!

 

At House Closing, we provide expert legal services for real estate transactions. We work closely with top title insurance providers to get you the best protection. Whether you are buying, selling, or refinancing, our team will handle all the legal details for you.