Does title insurance work differently for a condominium in Ontario?

Title insurance for a condominium purchase in Ontario covers your ownership interest in your specific unit and your proportionate interest in the common elements, just as it does for a freehold property. Many of the standard risks — fraud, forged documents, pre-existing liens, zoning non-compliance, and encroachments — apply equally to condo purchases.

There are some nuances unique to condominiums. Your "title" in a condominium includes both your unit and your undivided interest in the common elements (lobby, hallways, elevators, amenities, parking if included). Common element disputes or registered claims against the condominium corporation can indirectly affect your interest, and your title insurance typically covers your unit interest rather than disputes at the corporation level.

Status certificate review is especially important for condos — it tells you about the corporation's financial health, reserve fund, any outstanding special assessments, and known litigation. That is not a title insurance function; it is a due diligence step your lawyer undertakes before closing. Title insurance protects your ownership rights in the unit; the status certificate tells you about the corporation's current condition. Both are important. Your lender will require title insurance, and your lawyer should always review the status certificate as well.