Title insurance has now become such an essential part of a real estate transaction in Ontario. It is crucial to know what a standard policy in a purchase transaction covers; and more importantly, what it does NOT cover.

What is title insurance?

Title insurance protects your ownership interest (i.e. title) of your property from losses incurred as a result of unknown title defects or other covered matters that exist at the time of your purchase, but are unknown to you at that time.

~Stewart Title Guarantee Company

What does title insurance cover?

• Someone else claiming an interest in your title
• Fraud, forgery and false impersonation affecting the validity of your title
• Existing liens against the title including realty tax arrears and municipal utility charges
• Violations of municipal zoning by-laws
• Many forms of encroachment onto the property or adjoining land
• Existing work orders
• Lack of legal access to the property
• Unmarketability of land due to adverse matters that an up-to-date survey/real property report (RPR)/Building Location Certificate would have revealed

What is not covered?

• Title or other defects created, allowed, or agreed to by you
• Title or other defects known to you but not Stewart Title prior to the policy date
• Environmental matters
• Native land claims
• Matters that result in no loss to you
• Matters disclosed in home inspection or building inspection reports obtained by you