Real Estate Law: Understanding Title Insurance for Ontario Homebuyers

Reviewed for Ontario legal-marketing accuracy — August 2026

Title Insurance for Ontario Homebuyers: What It Covers and What It Does Not

When you buy or refinance a home in Oshawa or elsewhere in Durham Region, your lawyer may discuss title insurance with you. Title insurance is common in Ontario, but it is not required by Ontario law. Whether it is appropriate depends on the property, the transaction, the lender’s requirements and the terms of the available policy.

What title insurance may cover

A residential owner’s policy generally protects against specified losses arising from covered title or ownership problems. Depending on the policy, coverage may include:

• certain unknown title defects, liens or encumbrances that existed at closing;
• some survey, boundary, access or zoning-related issues;
• fraud, forgery or impersonation affecting title;
• errors in public records or prior registrations; and
• legal expenses incurred to defend an insured title, where the policy applies.

Coverage is contract-specific. Exclusions, exceptions, deductibles and policy limits matter. A policy may not cover problems known before closing, matters the purchaser agreed to, environmental risks, certain Indigenous land claims, or issues created after closing. The wording of the actual policy controls.

Title insurance does not replace legal due diligence

Title insurance complements—not replaces—a lawyer’s review of title, registered instruments, searches, closing documents and transaction-specific risks. Some issues may require a survey, municipal information, additional searches, a policy endorsement, a contractual remedy or another form of protection.

Owner and lender policies are different

A lender’s policy protects the lender’s insured mortgage interest. It does not necessarily protect the homeowner. An owner’s policy protects the purchaser only to the extent set out in that policy. Buyers should ask which policy is being obtained, who is insured, what risks are excluded and how long the coverage continues.

Questions to ask before closing

1. What title searches and off-title inquiries are appropriate for this property?
2. Is the proposed policy an owner’s policy, a lender’s policy, or both?
3. Are there property-specific exceptions or endorsements?
4. Would a current survey or other investigation be useful?
5. What must be disclosed to the insurer before closing?

A real estate lawyer can explain the available protection in the context of your agreement of purchase and sale, financing and property.

This article provides general information about Ontario law and is not legal advice. Coverage depends on the wording of the applicable insurance policy and the facts of the transaction. Reading this article does not create a solicitor-client relationship. Laws and policies may change.