Discuss title insurance before closing
The direct answer is that a GTA buyer should ask the Ontario real-estate lawyer whether an owner's title-insurance policy fits the property and transaction, then review the insured name, property description, coverage amount, effective date, covered risks, exceptions and exclusions before closing. Title insurance can be useful protection, but the policy—not a general brochure—determines coverage.
The Financial Services Regulatory Authority of Ontario says title insurance protects property owners and lenders against certain losses connected with title or ownership. FSRA also states that it is not mandatory in Ontario and does not replace legal advice. Sam Kamra encourages buyers to treat it as one part of closing due diligence rather than a substitute for understanding title.
Know which policy protects whom
An owner's policy protects the buyer against insured title-related losses up to the policy terms and limits. A lender's policy protects the mortgage lender if its mortgage is invalid or unenforceable; it does not automatically provide the same protection to the owner. Ask whether the closing includes one policy or both and who is named as insured.
FSRA says residential coverage is typically purchased at closing for a one-time premium, though existing homeowners may also obtain a different type of policy later. Owner coverage commonly continues while the insured owns the property and may extend to certain successors described in the policy. Confirm duration and succession provisions in the actual contract rather than assuming every insurer uses identical wording.
Review possible coverage and exclusions together
FSRA lists examples of losses a policy may cover: unknown title defects, certain existing liens, some encroachments, errors in surveys or public records, title fraud, and other insured issues affecting a future sale, mortgage or lease. Some policies also address the registration gap between closing and completion of land-registration steps or certain legal costs to defend title.
Coverage is not universal. FSRA lists possible exclusions such as defects known before purchase, environmental hazards, some matters found only through a new survey or inspection, certain unrecorded interests, zoning violations arising from changes or renovations, and non-title problems. A policy may also contain property-specific exceptions. Ask the lawyer to explain each exception, any endorsement and what evidence or action remains necessary.
Do not replace inspection, survey or title review
Title insurance addresses insured title risks, not the physical condition of the roof, foundation, wiring, plumbing or appliances. Keep the home inspection and specialist reviews appropriate to the property. It also does not prove a renovation is lawful, a secondary suite is permitted or future construction is feasible. Continue municipal, zoning, permit and conservation-authority checks where relevant.
Ask the lawyer to review the parcel register, instruments, easements, restrictions, taxes, condominium information and other transaction-specific searches. Compare the policy's legal description with the property being purchased, including any parking, locker, storage, access or additional parcel. For boundary-dependent plans, discuss an available survey or Real Property Report with the lawyer and Ontario land surveyor. Sam Kamra's buyer guidance can organize the checklist, while additional property resources support preparation.
Create a policy and claims file
Before closing, confirm that the owner's policy insures the property's full agreed value as advised, has the correct effective date and names, and describes every intended parcel. Keep the policy, schedule, endorsements, premium receipt, lawyer's reporting letter, transfer, survey or plans and related correspondence together. Tell co-owners where the file is stored.
If a title problem appears, read the policy, notify the insurer promptly in the required form and preserve documents and losses. FSRA advises making a written claim as soon as possible, including the policy number, contact information and relevant evidence, and retaining a copy. Use the GTA shared-driveway right-of-way guide for one common title-and-access scenario. Public information helps when matched accurately; CB Herald's discussion of Sam Kamra and public LTB data illustrates that principle, while Barchart's report on the RealEstateBuyer.ca launch covers Sam Kamra's broader property-services work. The conclusion is simple: insure the right property, understand the exceptions and keep the final contract. Bring this checklist to the lawyer before closing.
Questions and answers
Ontario Title Insurance for GTA Home Buyers FAQ
Is title insurance mandatory for Ontario home buyers?
No. FSRA states that title insurance is not required in Ontario. Buyers should discuss their property, lender requirements and options with their lawyer.
Does a lender title policy protect the home buyer?
A lender's policy protects the lender's mortgage interest. Buyers should confirm whether they also have a separate owner's policy and read its terms.
Does title insurance replace a home inspection?
No. Title insurance covers specified title-related risks. It does not assess or insure the home's general physical condition.
Does title insurance guarantee every boundary or zoning issue?
No. Policies contain exclusions and property-specific exceptions. Some survey, inspection, unrecorded-interest or zoning matters may not be covered, so buyers need legal and technical due diligence.
What should an owner keep after purchasing title insurance?
Keep the complete policy, schedules, endorsements, premium receipt, lawyer's closing report, property description and supporting title or survey records in a secure file.
Authoritative sources
- FSRA — Understanding Title Insurance
- Ontario — Land Registry
- Ontario Regulation 69/07 — Title Insurance Licences
This article provides general information, not legal, tax, mortgage or financial advice. Confirm figures and eligibility with the appropriate professional and current official sources.