Buying a home is a major milestone, but it also comes with a long list of legal and financial decisions that can feel overwhelming. Between mortgage approvals, home inspections, closing costs, and endless documents to sign, even experienced buyers can feel stressed. One area that often gets overlooked is title insurance, despite the fact that it protects you from some of the most expensive and unexpected problems that can arise long after you move in.
Many homeowners think a lawyer’s title search is enough, but the truth is that searches—no matter how thorough—cannot uncover every issue in a property’s history. Title insurance fills in these gaps and offers protection that can save you tens of thousands of dollars and months of legal trouble.
Why Lawyers Emphasize Title Insurance During Real Estate Closings
Real estate lawyers encounter title problems far more often than most buyers realize. That’s why they consistently recommend title insurance, not as an upsell, but as a smart layer of protection. As Anya from Zubic Law says, “Title insurance protects homeowners from the problems they didn’t know existed—issues buried in old records, overlooked in past transactions, or created by mistakes a buyer couldn’t possibly catch.” When a lawyer with experience handling Ontario real estate speaks this strongly about title insurance, it’s because they’ve seen firsthand what can go wrong without it.
This is especially relevant in the Niagara, St. Catharines, Hamilton, Grimsby, and Welland areas, where older homes, past renovations, border-proximity complications, and mixed residential-commercial zoning mean properties often have long, complex histories. Even newly built properties can have issues with boundaries, registration errors, or unpermitted work completed by subcontractors.
What Title Insurance Actually Covers (And Why It Matters)
Title insurance protects homeowners from a wide range of issues that may not appear during a traditional title search. These risks include problems that happened years—sometimes decades—before you ever owned the property. Some examples include:
- Title fraud or identity-based transfers
- Unpaid taxes, utilities, or liens that now apply to the new owner
- Errors in public records or property descriptions
- Survey mistakes or boundary encroachments
- Unregistered easements affecting access or use of the land
- Renovations or additions completed without proper permits
- Zoning or bylaw violations that were not disclosed
- Challenges to ownership by a third party
Without title insurance, resolving any of these issues would require hiring a lawyer, initiating legal proceedings, and paying out of pocket for repairs, demolitions, or settlements. With title insurance, the insurer steps in—covering legal costs, remediation, and in some cases even compensating the homeowner.
Why Title Insurance Is Especially Important for Ontario Buyers
Ontario uses a sophisticated land registry system, but even with modern records, mistakes remain. Many homes still rely on older documentation, handwritten entries, scanned records, or data transferred from past systems. Homes with long histories—common in Niagara and Hamilton—are particularly prone to missing permits, undocumented improvements, or boundary issues from decades ago.
Municipalities also vary widely in their record-keeping. Some keep meticulous archives; others have backlogs that make verifying old permits or past renovations almost impossible. Title insurance ensures that, even if the municipality later discovers an issue, the financial burden doesn’t fall on you.
Lenders often require title insurance to protect their interest, but buyers should always obtain their own owner’s policy as well. The lender’s policy covers the bank. The owner’s policy is the one that protects your rights, your finances, and your peace of mind.
Common Title Issues Seen in Niagara and Hamilton
Certain problems surface more frequently in Southern Ontario because of the area’s age and diversity of housing. Some recurring issues include:
- Unpermitted basement apartments or secondary suites
- Decks, garages, or additions completed without proper building permits
- Missing surveys or outdated survey information
- Encroachments from retaining walls, fences, or sheds
- Incorrect lot boundaries in rural or semi-rural areas
- Historic liens or mortgages not properly discharged
- Easements or rights-of-way that were never registered
These issues may not cause immediate problems, but when they do surface—often during future renovations, property sales, or municipal audits—they can become costly very quickly.
How the Process of Getting Title Insurance Works
The good news is that getting title insurance is simple. Homebuyers do not need to shop for or negotiate policies. Instead, the process typically looks like this:
- You speak with your real estate lawyer before closing and discuss the benefits of title insurance.
- Your lawyer conducts a title search and reviews the property’s history.
- The lawyer recommends a policy tailored to the property’s risks.
- A one-time premium is paid at closing.
- Coverage lasts as long as you own the property, with no additional monthly or annual fees.
The cost is low relative to the protection it provides—usually a few hundred dollars, depending on the value of the home.
Key Questions Buyers Should Ask Their Lawyer About Title Insurance
To get the most value from your policy, ask your lawyer:
- What risks does this specific property have?
- Does this policy cover building permit violations?
- What issues are excluded from coverage?
- Should I purchase both an owner’s and lender’s policy?
- How does the insurer handle claims if something goes wrong?
A knowledgeable lawyer will clearly explain the benefits and provide guidance specific to your location and property type.
A Smarter, Safer Way to Close on Your Home
Title insurance may not be the most exciting part of the home-buying process, but it is one of the most important. It protects you against hidden risks, unexpected legal problems, and costly surprises that could appear years after closing. For Ontario homeowners—especially those purchasing in regions with older homes, complex land histories, or inconsistent municipal records—it adds a layer of protection that no title search alone can guarantee.
A home is more than a financial investment—it’s the place you expect to feel secure. Title insurance helps make that security real by ensuring your ownership is protected from the moment you take possession of your new property.
