What is title insurance and do I need it?
What is title insurance — do you really need it before selling your Georgetown home?
Quick straight talk
If you plan to sell a home in Georgetown, Ontario, you need to know one thing: title problems kill closings and cost money after the sale. Title insurance is the fast, proven way to protect your sale, cut legal risk, and keep buyers confident. Below I explain exactly what title insurance is, how it works in Ontario, and when a seller in Georgetown should act.
What is title insurance? Plain and simple
Title insurance is a one-time policy that protects property owners and lenders from losses related to defects in a property’s title. Those defects can be mistakes, omissions, fraud, liens, or legal challenges that weren’t discovered during the normal closing process.
There are two main types:
- Owner’s title insurance: protects the homeowner’s interest in the property.
- Lender’s title insurance: protects the mortgage lender’s interest.
A title insurance policy pays for legal defence and losses up to the policy limit if an insured title problem appears after closing.
How title insurance works in Ontario (and why it’s relevant in Georgetown)
Ontario uses two systems: Land Titles (Torrens) and Registry. Land Titles gives stronger legal assurance because the province guarantees title, but it doesn’t eliminate every risk. Registry titles and human errors can still create problems. Title insurance fills the gaps even in Land Titles: fraud, forgeries, unregistered interests, municipal issues and errors in earlier transfers.
In Georgetown and Halton Hills you have additional local layers: heritage properties, conservation authority rules, municipal compliance, and sometimes complex easements near the Credit River. Title insurance covers many of these local pain points that a title search alone might miss.
What title insurance covers (and what it usually doesn’t)
Covers (typical):
- Fraud and forged documents.
- Undisclosed or missing heirs, erroneous signatures.
- Outstanding mortgages or liens not caught in the search (builder’s liens, tax arrears).
- Easements, encroachments, or boundary disputes that affect ownership.
- Fraudulent transfers and identity theft.
- Certain municipal compliance issues and zoning problems (varies by policy).
Doesn’t typically cover:
- Issues the insured knew about before purchasing.
- Defects created after the policy date.
- Some municipal or building-code violations tied to visible changes made without permits (unless covered by policy wording).
Always read the policy exclusions and ask your lawyer what this particular insurer includes.
Why sellers in Georgetown should care
Most sellers assume title issues are a buyer problem. That’s risky.
Here’s why sellers need to pay attention:
- Hidden liens or prior mortgages can hold up closing or lead to claims after the sale.
- Heritage designations and conservation rules are common in Georgetown’s downtown. If those weren’t disclosed or a renovation lacked permits, the buyer can raise claims and ask for compensation.
- Fraud can hit anyone. Stolen identity, forged signatures, or a prior unregistered claim can derail a transaction.
- Municipal orders, unpaid property taxes, or by-law violations attached to the property can create post-closing exposure.
If a title defect from before closing turns up after the sale, buyers often demand the seller fix it or pay damages. That’s a real, expensive hassle.
Typical title issues in Georgetown, ON
- Heritage or conservation restrictions tied to older downtown homes.
- Unpermitted renovations on older properties.
- Easements and rights-of-way near the Credit River and conservation lands.
- Builder’s liens or contractor holds when sellers did recent renovations.
- Errors in legal descriptions or boundary lines on older lots.
- Municipal orders for property standards in older sections.
These issues appear routinely in Halton Hills transactions. Title insurance is designed to deal with many of them fast.
Cost and who pays for title insurance in Ontario
Title insurance is a one-time premium, usually paid at closing. Typical owner’s policy premiums in Ontario are a fixed-fee or percentage-based on the purchase price; for most residential sales the owner’s policy is a modest one-time cost — often a few hundred dollars (varies by insurer and property value). Lender policies are often cheaper and sometimes required by the bank.
Who pays? In most Ontario transactions the buyer or their lender purchases title insurance. However, sellers can take two practical options:
1) Resolve title issues before listing, using a pre-listing title search and, if helpful, a seller-funded solution.
2) Offer an owner’s title insurance policy as a selling point (paid by seller) to remove buyer objections and speed the sale.
Either approach reduces the risk of post-closing demands and gives buyers confidence. That confidence often converts to stronger offers and smoother closings.
Step-by-step plan for Georgetown sellers — what to do this week
- Order a pre-listing title search through a local real estate lawyer. Find out if there are liens, mortgages, or caveats.
- Check municipal compliance: outstanding building permits, property standards orders, or tax arrears with the Town of Halton Hills.
- If your property is in the downtown or near conservation areas, confirm any heritage, conservation authority, or easement records (Conservation Halton oversight applies in many spots).
- Fix visible problems now: clear small liens, secure permits retroactively where possible, and gather documentation of renovations.
- Consider offering an owner’s title insurance policy to buyers at closing to reduce negotiation friction.
- Add Title Insurance to your listing notes or agent disclosures as a selling feature: “Seller offers owner’s title insurance at closing” can reduce buyer hurdles.
Follow these steps and you cut risk, speed up the sale, and protect your money.
Real examples (short, real-world style)
- A Georgetown seller had an unregistered contractor lien from a garage reno. Closing stalled for weeks until the lien was cleared. A pre-listing title check would have flagged that.
- A downtown homeowner discovered a heritage designation after listing. The buyer wanted financial protection. Offering an owner’s title policy eased the buyer’s concerns and kept the sale on track.
These aren’t rare. They’re avoidable.
Legal landscape and practical notes for Ontario sellers
- Land Titles vs. Registry: Land Titles gives stronger guarantees, but title insurance still matters because risks like fraud and missing signatures aren’t always solved by registration alone.
- REBBA and disclosure: Real estate professionals must disclose known risks. Title insurance is not a substitute for disclosure but is a practical backstop.
- Conservation Halton and heritage rules: If your property touches the Credit River valley or sits in the historic downtown, expect extra scrutiny. Check with local planning first.
Should you buy title insurance as a seller? My recommendation
If you want a fast sale with fewer last-minute fights, yes. Not necessarily because you must, but because it removes friction and protects you from after-the-sale claims. The cheapest dollar you spend before closing can save thousands in litigation and stress later.
If you prefer to avoid the cost, at minimum get a pre-listing title search and clear any issues revealed. If anything complicated shows up — liens, unpermitted work, boundary disputes — buy into a title policy or resolve the problem before listing.
How I help sellers in Georgetown
I specialize in selling homes across Halton Hills and Georgetown. I coordinate pre-listing title checks, connect you with experienced Ontario real estate lawyers, and help structure offers that reduce buyer hesitation. If you want the listing to attract stronger offers and close with confidence, include title insurance as a strategic move.
Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Title insurance for Georgetown home sellers
Q: Who typically pays for title insurance?
A: The buyer or the buyer’s lender typically purchases title insurance, but a seller can offer an owner’s policy to sweeten the deal. Some sellers pay the cost to speed closing.
Q: Do I need title insurance if my property is on Land Titles?
A: Land Titles reduces some risks, but it doesn’t cover everything (fraud, prior unregistered claims, municipal issues). Title insurance adds protection where registration stops.
Q: How much does title insurance cost in Georgetown?
A: Costs vary by insurer and property value. For most residential sales expect a one-time premium in the low hundreds of dollars for an owner’s policy. Ask your lawyer or insurer for a quote based on the sale price.
Q: Will title insurance cover a heritage designation or conservation order?
A: Many policies cover specific municipal or zoning defects, but coverage varies. You must read policy details. If your property is heritage-listed or near conserved land, check with the insurer and your lawyer.
Q: Can a buyer force a seller to buy title insurance?
A: No. Buyers can request it or condition their offer on an owner’s policy, but it’s negotiable. Offering it proactively can give you leverage.
Q: What happens if a title issue appears after closing?
A: If you bought an owner’s policy, it will cover legal costs and losses up to the policy limit for covered issues. If no policy exists, disputes can become litigation matters where the seller could be on the hook for resolution if the issue predates the sale.
Q: How do I get started today?
A: Order a pre-listing title search with a trusted Halton Hills real estate lawyer. Gather renovation permits and tax records. If you want help, contact me and I’ll connect you with the right professionals.
Title problems don’t announce themselves. The choice is simple: plan ahead or pay later. Protect your sale, your time, and your money. If you’re selling in Georgetown and want a fast, clean close, reach out: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
