TRENDING: Osmington Gerofsky Advances Vandyk’s Mimico Project In Receivership

Title Insurance

Understand how title insurance protects Canadian property buyers from legal defects, liens, and fraud after a real estate purchase.

Title Insurance
Escrow – Definition, Meaning, and Examples in Canadian Real Estate

May 22, 2025


What is Title Insurance?

Title insurance is a policy that protects property buyers and lenders against financial loss related to defects or issues with the legal ownership of a property.

Why Title Insurance Matters in Real Estate

In Canadian real estate, title insurance provides peace of mind by covering risks not always detectable through a title search. It protects against issues such as:

  • Undisclosed liens or encumbrances
  • Errors in public records or surveys
  • Title fraud or identity theft
  • Zoning or permit violations discovered after purchase
There are two main types:
  • Owner’s policy: protects the buyer’s interest in the property
  • Lender’s policy: protects the mortgage lender’s interest

Title insurance is often a one-time premium paid at closing. It complements, but does not replace, a thorough legal review and title search conducted by a real estate lawyer.

Understanding title insurance ensures that buyers are protected from unforeseen legal claims or defects that may threaten their ownership rights.

Example of Title Insurance

After closing, a buyer discovers a previously registered construction lien. Their title insurance covers the legal costs and settlement to clear the issue.

Key Takeaways

  • Protects against ownership-related risks.
  • Covers fraud, liens, and clerical errors.
  • Available for buyers and lenders.
  • One-time cost added at closing.
  • Complements lawyer due diligence.

Related Terms

  • Title Search
  • Lien
  • Encumbrance
  • Legal Liability
  • Real Estate Lawyer

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

More For You

Fengate Forges Ahead With “Landmark” Purpose-Built Rental Site Zoned For 44 Storeys

Fengate Forges Ahead With “Landmark” Purpose-Built Rental Site Zoned For 44 Storeys
Rendering 4-10 Beamish Drive/WZMH Architects

Just over a month after announcing they had closed on the sale of the site, investment manager Fengate Asset Management and development and construction company High Rise Group have advanced plans to bring a 44-storey purpose-built rental to 4, 6, 8, and 10 Beamish Drive. The site in Etobicoke has already been rezoned for the proposed tower, and now the developer is seeking Site Plan Approval, which gives the City a chance to review the technical design and functional details of the project.

Fengate announced the acquisition of the site on July 21, describing it in a press release as a “landmark” and “transit-oriented parcel” steps from the Kipling Transit Hub. “Located at the intersections of Dundas Street West, Bloor Street West, and Kipling Avenue, the site is well positioned with direct access to TTC subway lines, GO Transit, and MiWay bus services, providing seamless connectivity across the Greater Toronto and Hamilton Area (GTHA),” the release said.

Keep ReadingShow less

Darren Tangen Named President As Westbank Looks To Broaden Horizons

Westbank named Darren Tangen as its new President on September 3.

Westbank named Darren Tangen as its new President on September 3.

Last week, prominent Vancouver-based real estate developer Westbank welcomed Darren Tangen as its new President, the company tells STOREYS.

Tangen comes from American global asset management firm Oaktree Capital Management, where he served as Managing Director, Head of Real Estate Business Development from April 2023 to March 2025. (Canadian firm Brookfield Asset Management acquired 61.2% of Oaktree in 2019.)

Keep ReadingShow less

DiamondCorp, BV Realty Propose 48 Storeys Neighbouring Future LRT Stop

DiamondCorp, BV Realty Propose 48 Storeys Neighbouring Future LRT Stop
5-15 Park Hill/Arcadis

DiamondCorp and BV Realty Partners are behind plans for a 48-storey condo tower that would replace a string of single-family homes just north of the future Cedarvale station of the Eglinton Crosstown LRT. The development would deliver over 500 new residential units and be designed by Arcadis.

Plans were filed in late-August and support an Official Plan and Zoning Bylaw Amendment application to increase the height and density on permitted on the site, which includes five owner-occupied detached dwellings. The site spans from 5-15 Park Hill Road in Toronto's Forest Hill Neighbourhood and is located just northwest of the Eglinton Avenue West and William R. Allen Road intersection.

Keep ReadingShow less

Meet The Agent: Ian Matthews, RE/MAX Prime Properties-Unique Group Inc.

Ian Matthews, broker at RE/MAX Prime Properties-Unique Group Inc.

Welcome to Meet the Agent, an ongoing series profiling real estate agents from across Canada. With more than 150,000 agents, brokers, and salespeople working in 75 different boards and associations across the country, we thought it was about time they had a place to properly introduce themselves.

If you or someone you know deserves the same chance, email agents@storeys.com to apply.

Keep ReadingShow less

Op-Ed: What Our Neglected Structures Say About What We Value

Op-Ed: What Our Neglected Structures Say About What We Value
Ontario Place Redevelopment, March 30, 2025 / Shutterstock

This article was written and submitted by Richard Witt, an architect and principal at BDP Quadrangle where he tries to fill every half empty glass.

“Architecture is like clothing for our streets,” said Robert Wiljer, a professor I was fortunate enough to study under at the University of Waterloo. “Some people walk by and never notice what others are wearing. But for some of us, it matters deeply.” That line seems to be resonating with me more recently as I traverse the west end of Toronto, and I suspect would have the same resonance if I was able to get to other parts of the city (expediently).

Keep ReadingShow less

Brookfield Looks To Sell Retail Component Of Shangri-La Vancouver

Brookfield acquired Shangri-La Vancouver earlier this year and is rebranding the hotel as a Hyatt.

Brookfield acquired Shangri-La Vancouver earlier this year and is rebranding the hotel as a Hyatt. / Peterson, DIALOG Design

Less than three months after acquiring the Shangri-La Vancouver, which is set to be rebranded by Hyatt, Canadian multinational investment firm Brookfield is looking to flip the retail component they acquired alongside the hotel, STOREYS has learned.

The Shangri-La Vancouver is located at 1128 W Georgia Street — between W Georgia Street and Alberni Street, along Thurlow Street — and consists of a 62-storey tower with 119 hotel suites on the first 15 floors and 307 residences above. Adjacent to the tower is a three-storey building at 1121 Alberni Street that houses retail space.

Keep ReadingShow less

My Neighbour, The Shelter

My Neighbour, The Shelter

Welcome art at 629 Adelaide St. W shelter

A new homeless shelter recently opened in my neighbourhood, operated by St. Felix Centre. By definition, I am the one who is “supposed” to object — the neighbour who falls into the familiar NIMBY category. Instead, I want to explain why I support this project, and why it has the ingredients not only to succeed but to become a model for other shelters.

When Adaptive Reuse Meets Urgent Need

The shelter was created by renovating an existing building, rather than constructing a new one. This distinction is critical. New builds are often more difficult for communities to accept because they visibly alter the physical status quo of the neighbourhood. By repurposing an existing building, the change is primarily in use, not in built form. This reduces disruption while still addressing urgent need.

Keep ReadingShow less

KingSett Capital Buys Pender Place Office Towers In Vancouver From CF & IMCO

The Pender Place office towers at 700-750 W Pender Street in Vancouver.

The Pender Place office towers at 700-750 W Pender Street in Vancouver. / Cadillac Fairview

Toronto-based private equity real estate firm KingSett Capital has acquired the twin office towers in downtown Vancouver known as Pender Place, after the high-profile complex was put on the market earlier this year.

Pender Place is located at 700 W Pender Street and 750 W Pender Street in the heart of downtown Vancouver, which are together a single 0.716-acre legal parcel with an address of 700 W Pender Street.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
2025 © STOREYS Publishing Inc. | All Rights Reserved