When is a title search done when buying a house? In Ontario, the buyer’s real estate lawyer normally begins the title review after receiving the accepted Agreement of Purchase and Sale and early enough to raise title requisitions before closing. What is a real estate title search? It is the lawyer’s review of the registered land record and related documents to assess who can transfer title and what registered interests affect the property. How long does a title search take? That depends on the property’s records, the documents that need review and whether an issue must be resolved before closing.
An accepted offer is an important contractual step, but it does not itself put the buyer on title. Ownership is transferred when the transfer/deed is electronically registered and the purchase is completed. Retaining a lawyer promptly after acceptance gives the lawyer time to search, advise on concerns and communicate with the seller’s lawyer before the contractual deadlines become urgent.
When is a title search done when buying a house in Ontario?
A title search is usually done after the Agreement of Purchase and Sale is accepted and before the buyer takes title on closing. The buyer’s lawyer should receive the signed agreement, any schedules, the listing information and the closing date as soon as possible so the review can begin while there is time to deal with concerns.
In a typical Ontario resale purchase, the sequence is as follows:
- The buyer and seller sign an Agreement of Purchase and Sale, often with conditions such as financing or inspection conditions.
- The buyer retains a real estate lawyer and sends the complete signed agreement and documents to the lawyer.
- The lawyer obtains and reviews the electronic land records, including the parcel register and, where needed, registered instruments.
- The lawyer makes appropriate requisitions to the seller’s lawyer within the timeframe in the agreement or the applicable standard form provisions.
- The parties and their lawyers address discharge documents, consents, releases, corrections or other requirements before the closing date.
- On closing, funds and documents are exchanged through the lawyers, and the transfer and new mortgage, if any, are electronically registered through Teraview.
The exact order can vary. A short closing date, a rural property, a property with a long ownership history, a private sale or an estate sale may require earlier attention. Buyers using a mortgage should also remember that their lender will have its own instructions and may require the lawyer to confirm matters relevant to the loan before advancing mortgage funds.
For example, a buyer agrees to purchase a Toronto freehold home for $1,050,000 with a 30-day closing. The buyer sends the accepted agreement to the lawyer the next business day. The lawyer searches title, sees an existing mortgage registered against the property and asks the seller’s lawyer for a commitment to discharge it from the sale proceeds. That registered mortgage is common in a sale; the key question is whether satisfactory discharge arrangements are in place before the buyer’s transfer is registered.
If you are dealing with a purchase, sale, refinance or ownership change, a real estate transactions lawyer can review the contract, title and closing requirements in the context of the particular transaction.
Is a title search required when buying a house?
A buyer should have title reviewed by their real estate lawyer before taking title, even though there is no single rule that makes every Ontario purchase follow one identical search process. The Agreement of Purchase and Sale, the type of property, the land registration system, the lender’s requirements and the risks identified in the file all affect what the lawyer must review and what additional inquiries are appropriate.
An accepted offer does not guarantee that the seller can convey the title the buyer bargained for. The seller may be the registered owner but have a mortgage to discharge, an easement may affect part of the land, or a restrictive covenant may limit a planned use. The title review is intended to identify those matters before the buyer completes the purchase.
Title review is also not limited to detached homes. It matters for condominiums, townhouses, vacant land, cottages, mixed-use properties and commercial properties. A transaction involving a transfer between spouses or family members can also require a title review because the lawyer needs to confirm the current registered ownership and how the new ownership should be registered.
For example, consider a buyer purchasing a $720,000 townhouse in Durham Region from an estate. The registered owner may be the deceased person rather than the estate trustee personally. Before closing, the lawyer may need to review the estate-related authority and the transfer documents to determine whether the person signing for the estate has authority to convey the property. That is different from simply confirming the street address on the listing.
Buyers who are changing ownership outside a conventional sale can also read about a real estate title transfer, but the appropriate documents and tax analysis depend on the reason for the transfer.
What is a real estate title search in Ontario?
A real estate title search in Ontario is a review of the land registration records to confirm the registered owner, legal description, Property Identification Number (PIN) and registered interests affecting the property. The lawyer uses that review to assess whether the seller can transfer the promised title and whether registered claims, rights or restrictions need to be addressed.
Ontario land is generally registered under the Land Titles Act or, for some older properties, the Registry Act. The electronic record commonly starts with a parcel register, but a meaningful title search can require more than reading the entries on that register. A registration number may lead to an instrument that must be obtained and reviewed to understand its terms, land affected, parties and continuing effect.
The purpose of title search is to help a buyer understand what is being acquired and what registered matters come with it. It is not a promise that a property has no risk, and it does not replace physical inspection or other due diligence.
For example, a parcel register may show an easement registered decades ago. The brief entry alone may not say whether the easement affects the full lot, a narrow rear strip or a shared driveway. Reviewing the instrument can show the purpose and location of the right, which may matter greatly to a buyer planning a rear addition, pool or laneway access.
What your lawyer reviews on title
Your lawyer reviews the parcel register and, when necessary, the documents behind registered entries to identify matters that may affect ownership, financing or intended use. The review commonly checks the registered owner, the legal description, registered charges and restrictions, but the exact scope depends on the transaction and property.
A parcel register is an index of registered information for a PIN. It may show a transfer, mortgage, easement, notice, restriction or other registration, but it may not provide all of the operative detail. A registration that appears routine should not automatically be assumed to be irrelevant.
| Registered issue | What it can mean in practice | Usual next step |
|---|---|---|
| Mortgage or charge | The seller’s lender has a registered security interest in the property. | The seller’s lawyer normally provides an undertaking or other satisfactory arrangements for discharge from sale proceeds. |
| Lien, writ or execution | A creditor’s claim may affect the seller’s ability to convey clear title. | The lawyers determine whether it affects the land and what release, discharge or court-related step is required. |
| Easement or right of way | Another person, utility or owner may have a right to use a defined part of the land. | Review the instrument, plans and intended use of the property before deciding whether it is acceptable. |
| Restrictive covenant | A registered restriction may limit building, use, design or other activities on the land. | Review the covenant’s wording and obtain planning or other advice if the buyer’s plan may conflict with it. |
| Legal-description concern | The land described in the agreement, survey, listing or PIN may require clarification. | Compare documents and seek clarification before registration; further survey or planning review may be appropriate. |
| Ownership or authority concern | The registered owner, estate representative, corporation or attorney may need to establish authority to sign. | Review the relevant authority documents and ensure the transfer is executed by the proper party. |
Not every registered entry is a defect. A utility easement may be expected and acceptable; an existing mortgage can usually be handled as part of an ordinary sale. What matters is whether the entry is consistent with the agreement, whether it affects the buyer’s intended use and whether the seller can satisfy the buyer’s legitimate requisition before closing.
The review may also involve the Planning Act. For example, certain land divisions, transfers or rights of way can raise Planning Act compliance questions. A lawyer may need to consider whether a consent, exemption, municipal confirmation or other evidence is necessary for the particular transaction.
What a title search does not check
A title search does not tell a buyer whether the house is structurally sound, whether every renovation was properly completed or whether every municipal concern will be visible on the land register. Title review, off-title inquiries and a home inspection answer different questions and should not be treated as substitutes for one another.
A home inspection concerns the physical condition of the property. An inspector may identify concerns such as a deteriorated roof, moisture, an electrical issue, foundation movement or an aging furnace. Those are important buying decisions, but they are not usually resolved by reading a parcel register.
Off-title due diligence concerns records and information outside the registered title. Depending on the property and transaction, appropriate inquiries may include municipal tax information, outstanding work orders, building permit records, zoning information, utility information or other municipal searches. The right inquiries depend on what is being bought, the property’s location, the agreement and the buyer’s intended use.
For example, a buyer purchasing a $1,350,000 detached home intending to add a garden suite should not assume that clean title confirms the project is permitted. The buyer may need to investigate zoning, applicable municipal rules, site conditions, permits and servicing requirements. A registered restrictive covenant could be relevant too, but title review alone does not decide whether a future project will receive approval.
Similarly, a search does not guarantee the exact location of fences, sheds or additions. A current survey, site inspection, municipal information and title insurance may each have a role, depending on the facts. A lawyer can explain the risk identified on the file, but cannot inspect the property in place of a qualified inspector or surveyor.
What happens if the search finds a problem?
If a title search finds a problem, the buyer’s lawyer raises it with the seller’s lawyer before closing and seeks an appropriate response. Some issues are routine discharge matters, while others may require documents, negotiation, further investigation, an extension of the closing date or advice about whether the buyer should proceed.
The Agreement of Purchase and Sale and its requisition provisions matter. They may set a deadline for the buyer to object to title matters and a process for the seller to respond. Waiting until just before closing can reduce the time available to obtain a discharge, correction, consent or other solution.
Common examples include:
- Seller’s mortgage: The seller’s lawyer may provide a written undertaking to obtain a discharge after using sale proceeds to pay the lender.
- Construction lien or creditor claim: The parties may need a discharge, release, holdback arrangement or other resolution suitable to the facts.
- Easement: The buyer may decide it is acceptable after reviewing its scope, or may need to reconsider plans for the affected land.
- Restrictive covenant: The buyer may need advice on whether the restriction affects the intended use and whether it can be released, varied or otherwise addressed.
- Missing authority or chain-of-title concern: Additional estate, corporate, power-of-attorney or corrective documentation may be required.
Consider a seller who has agreed to sell a $900,000 rural residential property with a shared laneway. The title search reveals a registered right of way that gives the neighbouring owner access over a defined lane. If the buyer intended to build a garage across that route, the lawyer would review the instrument and explain the concern before closing. The seller may not be able to remove a valid right of way, so the buyer may need to change the planned construction, negotiate if the contract permits or obtain further legal advice before deciding how to proceed.
Problems should be addressed rather than ignored. More information about common title issues on a house can help buyers understand why registered matters must be reviewed in their own context.
Can a buyer do a title search on OnLand?
A buyer can use available OnLand property-search options to obtain certain Ontario land records, but obtaining a parcel register is not the same as receiving legal advice on title. The record may identify the PIN, registered owner and registrations affecting the land, while the legal meaning of those entries may require review of the underlying instruments and the purchase agreement.
OnLand provides access to Ontario land registration information associated with Land Registry Office records. Teraview is the electronic system used by authorized professionals for electronic registration and related land registration work. A buyer may see a registration number or an abbreviated description online, but that does not necessarily explain whether the matter remains enforceable, affects the property being purchased or requires a response from the seller.
For example, a buyer may obtain a parcel register for a property showing a “notice” registered against title. Without reviewing the instrument, the buyer may not know whether it relates to a lease, litigation, a family law interest, a planning matter or something else. The buyer should send the record to their lawyer rather than assume a short entry is harmless or fatal.
A buyer can also make mistakes by searching the wrong PIN. A property marketed under one municipal address may involve more than one parcel, a common element, a parking unit or a locker unit. In a condominium transaction, separate units can have separate PINs and registrations. The legal description in the Agreement of Purchase and Sale is therefore important.
People looking for assistance in Durham Region can speak with our lawyers in bowmanville about the title and closing process for an Ontario transaction.
How long does a title search take, and what can delay it?
How long a title search takes depends on the property’s registration history, the documents that must be reviewed, the scope of additional inquiries and any problem discovered during the review. A straightforward electronic record may be reviewed promptly, but a title issue can take longer because the necessary discharge, authority document, municipal response or negotiation may not be immediately available.
Buyers should retain their lawyer immediately after acceptance rather than wait for mortgage approval or the final days before closing. Short closing periods leave less time to investigate a concern, deliver a requisition and obtain a meaningful response.
Timing can be affected by:
- multiple PINs, older registrations or a long chain of instruments;
- an estate sale, corporate seller, power of attorney or other authority issue;
- an existing charge, lien, notice or execution that requires release or discharge;
- the need to obtain an easement, covenant, reference plan or other registered instrument;
- municipal, tax, zoning, permit or work-order inquiries; and
- a request for an extension because the issue cannot be resolved within the original closing timeline.
For a focused overview of timing and transfer-related questions, see how long does a title search take in Ontario. The practical answer for a particular purchase depends on the documents and the closing date, not on a standard number of days.
What does a title search cost in Ontario?
The cost of title-related work in Ontario depends on the property, records obtained, off-title inquiries required and the lawyer’s fee arrangement. Buyers should ask for an itemized estimate that distinguishes legal fees, HST, land registration charges, search charges, title insurance if selected and other disbursements.
A title search is not always a separate universal line item. On one file, the work may mainly involve obtaining and reviewing a parcel register and ordinary registrations. On another, the lawyer may need to obtain several instruments, review multiple parcels, investigate a complicated ownership issue or order additional inquiries. The cost should reflect the scope of work actually needed.
For example, a buyer of a condominium unit with one parking unit and one locker may have several relevant PINs. If each unit has separate title records, the lawyer needs to ensure the agreement, title and transfer documents align. That is different from a small freehold property with one PIN and no unusual registrations.
Do not base a purchase decision solely on an advertised low legal fee. Ask what is included, which disbursements may be additional, whether title insurance is included or optional, and what additional work could arise if a significant title issue is found.
Title insurance and condo purchases
Title insurance can protect against specified covered title risks, subject to the policy’s terms, exclusions, conditions and coverage limits, but it does not replace the lawyer’s title work. The insurer, such as FCT or Stewart Title, determines the coverage available under the policy issued for the transaction.
A title insurance policy may be useful where an identified risk falls within its coverage, but buyers should not assume it covers every issue. It does not replace reading the Agreement of Purchase and Sale, reviewing registered interests, obtaining an inspection or investigating planned construction and use. For more context on the timing and role of a policy, read the importance of title search.
A condominium purchase requires more than a title search. Title review addresses the unit, any related parking or locker units, and registered interests affecting them. A status certificate is a separate document from the condominium corporation that provides important information about the corporation and unit, including financial and other prescribed information.
For example, a buyer purchasing a $680,000 Toronto condominium may find clean title to the unit and parking space, yet the status certificate may disclose an upcoming special assessment or litigation involving the condominium corporation. Conversely, a status certificate does not replace a lawyer’s review of the title records. Both forms of due diligence can matter before the buyer waives conditions or closes.
Title-search questions buyers ask
When do they do a title search?
They usually do it after the Agreement of Purchase and Sale is accepted and before closing. The buyer should send the signed agreement to their lawyer right away so the lawyer can review title and raise concerns before contractual deadlines.
Is a title search required when buying a house?
A buyer should have title reviewed by a lawyer before taking title, but the exact searches and inquiries depend on the agreement, property and lender requirements. An accepted offer is not the same as registered ownership, and title concerns should be identified before the transfer is registered.
What is a parcel register?
A parcel register is the Ontario land registration record associated with a specific PIN. It identifies registered ownership and registrations affecting the parcel, but it may not contain enough detail to explain the terms or effect of an easement, notice, charge or covenant.
Can I search title myself?
You may be able to obtain land records through OnLand, but a self-obtained record is not a legal opinion. Send any records you find to your lawyer, especially where there are multiple PINs, registrations you do not understand or plans to renovate, rent out or redevelop the property.
What proves ownership in an Ontario purchase?
In an Ontario purchase, registered title in the land registration system is central evidence of ownership. On closing, the buyer’s lawyer arranges for electronic registration of the transfer, subject to the requirements of the Land Titles Act or Registry Act system applicable to the parcel and the facts of the transaction.
What should I send my lawyer immediately after acceptance?
Send the complete signed Agreement of Purchase and Sale, all schedules, amendments, the listing where available, deposit information, identification and your lender or mortgage broker’s contact information. Tell the lawyer about your intended use, such as a rental suite, addition, home business, garden suite or planned redevelopment, because that context may affect the due diligence recommended.
Speak with a Toronto real estate lawyer
Early legal advice can help you understand title records, contractual deadlines and any issue found before you take title to an Ontario property.
Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.