Title Insurance pros and cons

Those who have ever bought a real estate property may have heard of the term “Title Insurance”. What is this? Is it necessary? Why? Some would say “because the mortgage instructions require it.” As we shall show, this is only partially true. So, without any further ado, let us dig into the answers.

What Title Insurance is?

This is an insurance policy that protects both the owners of residential or commercial property and lending institutions against losses related to the property’s title or ownership, such as:

  • Unknown title defects;
  • Title fraud;
  • work done without building permits;
  • Errors in surveys and public records
  • Existing encumbrances against the property’s title (such as unpaid previous debts from utilities, mortgages, property taxes, or condominium charges secured against the property);
  • Encroachment issues (part of your building needs to be removed because it is on your neighbor’s property);

Is it necessary?

As a matter of fact, it is not a mandatory requirement. It is an option.


If it is not mandatory, then why to do it? The alternative to Title Insurance is a lawyer’s legal opinion regarding the quality and marketability of the title. To do that the lawyer has to perform numerous off-title searches. While those searches, in and of themselves, do not guarantee impermeability of the title, they, nevertheless, highly likely will overload the expenses the client will have to bear.  Bear in mind that title insurance protects your title from the day you purchase your house/ condominium and till the day you sell it.

In fact, not only Title Insurance covers more contingencies and gaps, but it is also more cost-effective. For example, off-title searches for a residential property in Toronto, a Utility Certificate costs $53.87, a Tax Certificate costs $70.02 and a Property Information Report regarding zoning/building issues costs $198.59, which totals to just over $320. At the same time, a Purchaser could buy both a homeowner’s and institutional lender’s policy for a half-million-dollar resale home from Stewart Title for under $290.

To learn more about Title Insurance or to complete a Purchase/Sale of property, contact Buzaker Law Firm via email at info@vblegal.ca or call 905-370-0484.

The information posted is not designed to provide legal or other advice or create a lawyer-client relationship. You should not take, or refrain from taking action based on this content. Prior results and case studies do not guarantee a similar outcome in future representation. Buzaker Law Firm accepts no responsibility for any loss or damage that may result from accessing or reliance upon this content on the Website and disclaim, to the fullest extent permitted by applicable law, any and all liability with respect to acts or omissions by clients or readers on the basis of the content on this Website.

Buzaker Law corporation

Buzaker Law corporation

About Buzaker Law Firm

Buzaker Law Firm strives to provide high-quality legal services with integrity, professionalism, and respect for our clients and the community. Our law firm focuses on ethics while solving and negotiating any situation with significant knowledge and skills gained through years of practicing law in Toronto, Ontario.

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