Title Search and Title Insurance in Canada

A title search is a review of the provincial land registry that confirms who legally owns a property and what else is registered against it — mortgages, liens, easements, covenants, and claims. In Canada, a lawyer or notary runs one before closing, and your lender usually needs a clear search or a title insurance policy before it advances funds. Nothing about your approval — the federal stress test, your GDS and TDS ratios, your down payment source — matters if the seller cannot convey clean title.

Title is the backbone of the deal. Land transfer tax, legal fees, and title insurance all sit on top of it, and a defect discovered late can delay closing or kill it outright.

What a Title Search Actually Checks

Canada runs two registration systems. Most provinces and territories use a land titles system, where the government guarantees the registered owner's title. Parts of the country still operate under an older registry system, where a lawyer must trace ownership back through a chain of deeds. Which system applies decides how deep the search has to go.

A search typically pulls together:

• The registered owner, the legal description, and the parcel identifier
• Every registered charge — mortgages, home equity lines of credit, construction liens, and judgments
• Easements and rights-of-way that let others cross or use the land
• Restrictive covenants that limit what you can build or how you can use the property
• Municipal work orders, tax arrears, and zoning issues surfaced through off-title searches

Your lawyer also looks for claims that may not appear on title, such as executions against the seller, family law claims, and construction liens registered late. This is where a purchase can slow down.

How a Title Search Fits Into Your Purchase Timeline

The search happens after your offer is accepted, usually while your mortgage is still in underwriting.

1. You instruct a real estate lawyer or notary.
2. The lawyer orders the title search and off-title searches.
3. The results are reviewed and the lawyer raises requisitions — formal demands that the seller clear problems before closing.
4. The seller's lawyer responds before the requisition date written into your agreement.
5. On closing, the seller's existing mortgages are discharged and your lender's charge is registered.

That requisition date is the deadline that matters most. Miss it and you can lose the right to demand a fix, which is why the closing day process really begins weeks before keys change hands. If the seller refuses to clear title, you need to understand what happens if you can't close.

What Title Insurance Covers — and What It Doesn't

Title insurance is a one-time premium paid at closing. There are two versions: a lender's policy, which protects the lender's security, and an owner's policy, which protects you. Many lenders in Ontario, British Columbia, and Alberta accept a lender's policy instead of a full opinion on title, which can mean the only search performed is the one your lender requires. Ask which policy you are actually getting.

Exclusions matter. Anything you knew about when you bought, environmental issues, and arrears you leave unpaid are typically outside the policy. Read the exceptions page, not just the summary.

Title Search vs Title Insurance: Which Do You Need?

They answer different questions. A title search tells you what is registered right now. Title insurance transfers the risk that something was missed. A search alone leaves you exposed if a forged discharge or an old lien surfaces later. Insurance alone means nobody actually read the register, so fixable problems stay in your name.

The strongest position is usually both: a lawyer reviews title before closing, and you carry an owner's policy afterward. Some buyers end up with only a lender's policy because that is what the lender accepted — confirm what you are covered for before you sign.

Common Title Problems That Show Up on a Search

• An existing mortgage the seller never discharged
• A construction lien from an unpaid contractor or supplier
• A fence, deck, or addition crossing the property line — see surveys and encroachments
• Signs of mortgage fraud, such as a discharge that does not look genuine
• Unpaid property taxes or utility arrears that follow the land after closing
• An old right-of-way or covenant that restricts what you planned to build

Costs, Providers, and the Mortgage Connection

Search and registration costs sit inside your closing costs alongside land transfer tax, legal fees, and adjustments. Search fees are usually modest; title insurance premiums vary by purchase price and province. The appraisal, inspection, and title insurance costs guide covers what to budget. Confirm current figures with your lawyer, notary, or title insurer — there is no single national price.

Where your mortgage fits: a lender's charge is only as strong as the title behind it. High-ratio buyers with less than a 20% down payment pay CMHC mortgage default insurance, and federally regulated lenders underwrite to OSFI Guideline B-20, but neither an insurer nor a lender will fund against defective title. Whether your rate is fixed or tied to prime, the money only moves once title is clear.