What is Title Insurance?
Title insurance is a one-time premium policy that protects homeowners and lenders against financial losses, legal fees, or property ownership challenges arising from undisclosed defects, liens, fraud, or errors existing before the purchase.
Why is it so important to have when you purchase your new home?
Title fraud has become one of the fastest‑growing forms of real estate crime, and homeowners often don’t realize they’re at risk until it’s too late. As digital tools — including AI — make it easier for criminals to impersonate property owners and forge documents, understanding how title fraud works is more important than ever.
What is covered?
For a one-time fee, called a premium, a title insurance policy may provide protection from such losses as:
- Unknown title defects that impact your ownership of the property
- Existing liens against the property’s title, such as unpaid debts secured against the property by a previous owner, including:
- Utility bills
- Mortgages
- Property taxes
- Condominium charges
- Encroachment issues (e.g. a structure on your property that encroaches on your neighbour’s property)
- Errors in surveys and public records
- Other title-related issues that may affect your ability to sell, mortgage, or lease your property in the future
- Title fraud
Understanding Title insurance | Financial Services Regulatory Authority of Ontario
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