Title Search Before Closing in Ontario: What Your Lawyer Looks For

Before you close on a home, your lawyer looks at what the public record says about the property: who owns it, what debts are registered against it, and what rights other people have over it. This is the title search, and it is one of the main protections you get from using a lawyer on a purchase.

This article explains what that search is meant to reveal, what kinds of problems come up, and what normally happens if something is found before closing.

What a title search is

A title search is a review of the land registry record for the property. Ontario's electronic registry can be searched on Teraview, and searches have been available outside registration hours, including weekends and holidays. The lawyer reviews the parcel register and the registered documents behind it.

There are small fees for copies from the registry. For example, a copy of a parcel register including the first page was listed at $36.50 in total, each additional page at $2.56, and viewing and copying an instrument at $3.39 per document, with fees effective November 3, 2025. These are typically passed along as disbursements, so ask your lawyer how they are billed.

What the search can reveal

Not everything is visible on the register. Some issues, such as physical encroachments, are usually found through a survey or inspection rather than a search alone. Your lawyer will explain what was reviewed and what was not.

Mortgages and debts against the property

The most common item on a search is the seller's own mortgage. The sale proceeds normally pay it out at closing, and the lender then discharges it. If the seller is paying off an entire mortgage early because they are selling, a prepayment penalty can apply, and porting the mortgage is only an option if the seller is buying another home. A penalty is usually the higher of three months' interest on what is still owed or the interest rate differential. That is mainly the seller's cost, but it explains why payout figures can change before closing.

Where land is subject to an encumbrance, land transfer tax applies to the amount owing at registration regardless of the relationship between the parties. This matters most in transfers between family members, where a buyer may assume a mortgage.

If a lender cannot be found, or a proper discharge cannot be obtained without undue delay, the Mortgages Act allows a court to permit payment into court and order the mortgage discharged. Registering that order has the same effect as registering a certificate of discharge signed by the mortgagee. This is a court process that takes time, so it is not a last-minute fix.

What happens if a defect is found

If the search turns up a problem, your lawyer usually raises it with the seller's lawyer in writing, before closing, and asks that it be fixed or explained. What can be done depends on what the agreement says about title and on the kind of problem.

• A registered mortgage may simply be handled through payout and discharge on closing.
• A claim or lien may need to be cleared or addressed by the seller.
• An easement may be acceptable to you, or may be a problem if it affects how you plan to use the land.
• A serious defect may lead to talks about delaying closing, changing terms, or whether the buyer must close at all.

Be careful about walking away on your own. If a buyer fails to close, the deposit can be forfeited without the seller proving loss, subject to a narrow relief test. Whether a particular defect lets you refuse to close depends on the wording of your agreement, so get advice first.

Title insurance and what to do next

Title insurance is a separate protection. FSRA notes that residential title insurance can be bought through a lawyer, a title insurance company or an agent or broker, and that policies cover title risks such as fraud and forgery and include legal expense coverage for defending title. A lender may require a policy, so ask your lawyer. A policy does not replace the search, and what it covers depends on its terms and exclusions.

• Ask your lawyer when the title search will be done and when you will hear the results.
• Ask for a plain explanation of anything registered against the property.
• Provide any survey you have, and mention any fences, sheds or boundary concerns you noticed.
• Ask whether title insurance is recommended or required by your lender.
• Do not remove conditions or refuse to close without advice.

Frequently asked questions