Key takeaways
- “Title” generally means legal ownership of a property; a title search reviews what the registry shows about ownership and registered interests.
- Your lawyer typically checks the land registry for registered matters such as mortgages, liens, unpaid property taxes, easements, and encroachments — subject to the searches done, the agreement, and any title-insurance terms.
- Problems are generally raised with the seller’s lawyer by the requisition date and addressed before closing.
- A title search and title insurance can work together, but they are not the same thing, and title insurance is optional in Ontario.
What does “title” actually mean?
“Title” generally means legal ownership of a property. When someone has title to a home, the public record typically shows they are the registered owner and have the right to sell it, mortgage it, or pass it on.
In Ontario, ownership generally isn’t proven by a piece of paper you keep in a drawer. It’s recorded in a government land registry — the official public record of who owns what and what interests are registered against each property. Reviewing that record is a large part of what a title search does.
What is a title search?
A title search is your lawyer’s check of the public land registry to see two things: who the registry shows as the owner of the home, and what interests are registered against it.
Think of it as reading the property’s registered history before you buy. The registry shows the current registered owner and registered claims, rights, or interests tied to the land. Your lawyer reviews these records so there are fewer surprises after you’ve handed over your money and taken ownership. Importantly, a title search reveals registered interests and searched matters — it does not by itself prove the property is free of all debts and claims. What it shows is subject to the searches actually done (including any off-title searches), the terms of the agreement, and any title-insurance coverage and its exclusions.
This is legal work, and it’s one of the reasons buying a home in Ontario typically involves a licensed real estate lawyer. Your own lawyer carries out the search, interprets what it turns up, and deals with anything that needs addressing.
What problems does a title search look for?
The point of the search is generally to identify registered matters that could affect your ownership. Your lawyer typically looks for several specific things, each of which can affect the property in a different way.
Here are the main items, in plain words:
| What your lawyer looks for | What it means |
|---|---|
| Existing mortgages | Loans secured against the property that the seller generally arranges to pay off, so the home typically comes to you free of the old debt. |
| Liens | A claim registered against the property for an unpaid debt — for example, money owed to a contractor. A lien encumbers title; the practical concern is usually the risk of loss, enforcement, reduced marketability, or the cost of clearing it, rather than making you personally liable for the seller’s debt. |
| Unpaid property taxes | Municipal taxes the seller may still owe, which can stay attached to the property until paid. |
| Easements | Someone else’s right to use part of the land — commonly a utility company’s right to run or access lines and pipes across the property. |
| Encroachments | A structure that crosses a boundary — for example, a neighbour’s fence or shed sitting partly on the land you’re buying (or the reverse). |
A quick definition of each term, so nothing is left vague:
- Title — legal ownership of the property.
- Lien — a claim registered against a property because of an unpaid debt. It encumbers title, so it generally needs to be addressed before the property changes hands cleanly; it does not necessarily make the buyer personally liable for the seller’s debt.
- Easement — someone else’s legal right to use part of the land for a specific purpose, such as a utility running equipment across it.
- Encroachment — a structure, like a fence, wall, or shed, that crosses a property boundary onto neighbouring land.
Not every one of these is a deal-breaker. An old mortgage, for instance, is common and is often paid off from the sale proceeds on closing. An easement for a utility often has no practical effect on how you use the home. The value of the search is that your lawyer generally knows what’s registered and can advise on what may need to be addressed before you commit — subject to the searches done, the agreement, and any title-insurance terms.
When does the title search happen?
The title search is generally done before closing — the day ownership legally transfers to you. That timing matters, because it typically gives everyone room to address problems while you still have leverage.
If the search turns up something that shouldn’t be there, your lawyer generally raises it with the seller’s lawyer. This is usually done by the requisition date — the deadline set in your Agreement of Purchase and Sale for your lawyer to identify title problems and request that they be resolved. Anything raised this way is generally expected to be sorted out before closing.
In practice, the process often looks like this:
- Your lawyer searches the land registry after your agreement is firm.
- If a problem appears — say a lien or an unresolved encroachment — your lawyer sends a formal request (a “requisition”) to the seller’s lawyer by the requisition date.
- The seller’s side works to clear the issue: paying off the debt, discharging the lien, or otherwise resolving it.
- Once title is in acceptable condition, the deal generally proceeds to closing and ownership transfers to you.
If a serious problem can’t be resolved, having caught it early is exactly what can protect you. It’s generally far better to know before closing than to discover it as the new owner.
How does title insurance fit in?
A title search and title insurance can work together, but they are not the same thing. The search is a check done in advance; title insurance is a separate, optional policy that may provide ongoing protection.
A title search is thorough, but it can’t always reveal every possible issue — for example, something that was never properly registered, or a problem that only surfaces later. Title insurance is an optional policy in Ontario that may protect against certain title-related risks. Coverage is policy-specific and subject to exclusions. FSRA notes that policies may exclude matters such as known defects, some unrecorded liens or encroachments, survey-only issues, and some zoning matters. A title search does not guarantee clear title, and title insurance does not replace the search.
It’s also worth knowing that an owner’s (buyer’s) policy and a lender’s policy protect different interests — the owner’s policy protects the homeowner, while a lender’s policy protects the mortgage lender. They are not interchangeable, and one does not automatically protect the other.
Your lawyer can explain your options, including whether title insurance is arranged as part of closing and what a given policy covers and excludes. If you obtain a policy, keep it with your closing documents — an owner’s policy can stay relevant for as long as you own the home, subject to its terms.