Title Insurance vs. a Survey in Ontario: Which Do You Need?

When you buy a home in Ontario, your lawyer will ask whether there is an existing survey available — and if not, whether you want to order one or go with title insurance instead. For most residential buyers, the answer is straightforward: title insurance has become the standard approach, and most lenders accept it as a substitute for a survey. But these are not interchangeable products. They protect against different things, cost differently, and have different limitations. Understanding title insurance vs. a survey in Ontario helps you make an informed choice with your lawyer.

What a Survey Is (and What It Shows)

A survey (formally, a "surveyor's real property report" or "reference plan") is a document prepared by a licensed Ontario land surveyor. The surveyor visits the property, measures the lot, locates existing structures, and maps everything out. A survey shows:

• The exact boundaries of the lot
• The location of the house, garage, fences, pools, and other improvements relative to those boundaries
• Any encroachments — where a structure crosses a property line (your fence into the neighbour's yard, or their addition over your line)
• Easements registered on title that affect the physical property
• Whether a structure violates setback requirements

A survey is a physical truth about the land — what is actually there on the ground, as measured by a professional.

Limitation: surveys are a snapshot in time. A survey completed five years ago does not reflect a deck you (or the seller) built last summer, or a fence the neighbour moved. For the survey to be useful, it must be reasonably current and reflect the current state of improvements.

What Title Insurance Is (and What It Covers)

Title insurance is an insurance policy — typically a one-time premium — that protects you against financial loss arising from certain title problems. Unlike a survey, it does not go out and measure the land. Instead, it provides coverage if a problem arises.

A standard residential title insurance policy (from providers like FCT, Stewart, Chicago Title, or others) typically covers:

• Encroachments discovered after purchase (your fence is on the neighbour's land; you have to move it — insurance covers the cost)
• Title defects not discoverable from the public record at time of purchase
• Fraud and forgery — if someone fraudulently transferred the property using a forged signature
• Survey/zoning issues — violations of municipal zoning by-laws, building permits, or setback issues existing at closing
• Outstanding liens — work orders, hydro arrears, or liens that were not revealed by the standard searches
• Unmarketability of title — a defect that would prevent you from selling later

Most policies include both an owner's policy (protecting you) and a lender's policy (protecting your mortgage lender). Both are typically obtained at the same time for a single premium.

What title insurance does NOT cover:

• Environmental contamination
• Matters you specifically knew about at closing
• Issues arising after closing that you caused
• The physical condition of the property (that is what a home inspection is for)
• Native title or land claims (some are excluded; check the specific policy)

Cost Comparison

Title Insurance

As of writing, a residential title insurance policy for a typical Ontario purchase is a one-time premium, often in the range of a few hundred dollars depending on purchase price — see your lawyer for a current quote specific to your transaction. It is significantly less expensive than ordering a new survey. Verify the current premium with your lawyer, as it varies by insurer and property value.

New Survey

Commissioning a new survey from a licensed Ontario land surveyor is more expensive than title insurance and takes time — often several weeks. The cost varies by property size, location, and complexity. Rural and large urban lots tend to cost more. As of writing, a new residential survey can range from several hundred to over a thousand dollars — verify current pricing with local surveyors.

If the seller has an existing, recent survey that accurately reflects current improvements, your lawyer may be able to use it (with the benefit passing through title insurance for any gap period). This reduces costs significantly.

What Lenders Require

Virtually all major institutional lenders in Ontario accept title insurance as a substitute for a survey. In fact, most lenders no longer ask for surveys at all — they require title insurance. This is one reason the practice has shifted so decisively toward title insurance over the past two decades.

If you are buying without a mortgage (a cash purchase), you can choose either option — or both.

Can You Get Both?

Yes. Title insurance and a survey are not mutually exclusive. Some buyers order both — especially in cases where there are known boundary disputes, unusual lot shapes, or older properties with complex improvement histories. A survey gives you actual knowledge of the property boundaries; title insurance then covers you for anything the searches and survey missed.

For most standard residential closings in Ontario, title insurance alone is sufficient and cost-effective.

Your Lawyer's Role

Your real estate lawyer will:

• Advise you whether the seller's existing survey (if any) is usable
• Recommend whether title insurance is appropriate for your purchase
• Order the title insurance policy on your behalf and pass the cost through as a disbursement
• Review the policy commitment and flag any exceptions or exclusions
• Advise you if ordering a new survey would be prudent given the specific circumstances of your property

Do not make this decision in isolation — your lawyer's recommendation based on the specific property and title search results is the most valuable input.

Frequently asked questions