After 15 years as a real estate broker, I thought I had a pretty clear understanding of most aspects of a real estate transaction. Title insurance was one of those things I’d occasionally run into, usually when a notary flagged a previously unknown issue that the clients, and even the brokers, failed to catch. For the better part of my career, it was a rare occurrence.

However, in the past few years, something’s changed. I’ve seen title insurance become a far more common occurrence, often introduced at the very last minute, just days before closing, when the notary reviews the certificate of location and flags a minor non-conformity.

Maybe a shed is built a few inches too close to the property line, or slightly within a utility servitude. In some cases, if the structure in question is minor and moveable, like a plastic shed, title insurance might not be necessary. But if it’s something more permanent, like a concrete base, an in-ground pool, an A/C unit, or a retaining wall that’s too close to the property line or encroaching into a servitude, that’s when the notary may determine that title insurance is required.

Complicating matters further is a change in how acquired rights are interpreted. Land surveyors and city officials are no longer permitted to confirm whether acquired rights apply. Only a judge can do so. That means what might have once been easily clarified with a quick call to the city is now a legal grey area. Ironically, in many cases, title insurance becomes the most cost-effective and efficient way to allow the transaction to move forward without triggering costly minor derogation requests that could delay or jeopardize the deal altogether.

More often than not, it’s the seller who ends up footing the bill. Why? Because under the standard OACIQ clause in the Promise to Purchase, the seller is obligated to provide a certificate of location that reflects the current state of the property and is free of any irregularities. When the certificate of location reveals a problem, especially if it’s discovered late, the responsibility often lands on the seller’s shoulders.

The seller, having already agreed to the terms of the sale weeks or even months prior, looks to their broker and asks, “Why wasn’t I warned about this?” The buyer, meanwhile, accepts the added protection without question.

This often leaves sellers feeling blindsided. And as their broker, I was often left absorbing the blame and feeling guilty for something no one had anticipated.

The cost of title insurance can vary according to the issue at hand and the sale price of the home. Most residential title insurance policies, even those issued at the last minute, fall in the range of $500 to $1,500, including notary fees.
 

A Preconceived Notion

Based on my experience, I believed title insurance was being abused. It seemed to be imposed by notaries more often than necessary. I even questioned whether there was some sort of incentive or kickback involved. It felt like a racket, and because the seller always seemed to be the one paying, it felt like a trap.

I started encouraging my sellers to add clauses in their counterproposals, explicitly stating that if title insurance were to be required, it would be at the buyer’s expense. I’d also include a declaration that any known non-conformity, like a shed or fence too close to a property line, was being disclosed, and that the buyer was accepting it “as is.”

I saw it as a way to protect my clients, and I still do, but I’ll be the first to admit that my perception of title insurance itself has evolved.
 

A Conversation That Changed My Mind

My perspective began to shift after I took it upon myself to research title insurance more thoroughly. I explored how it actually works and spoke with someone I could trust who was more of an expert in the field. So, I reached out to one of our most trusted collaborators, Notary Sabrina Crespi, whose insight and experience helped demystify how and why title insurance is applied in real-world transactions.

Like any good notary, Sabrina walked me through the real work involved and the responsibility they carry when it comes to title insurance. What I came to understand is that it’s not something imposed casually or out of convenience. A qualified notary is required to evaluate every transaction individually and determine whether there’s a risk that justifies the added protection. Often, the concerns go well beyond what the certificate of location reveals.

Here’s what I learned about their role:

They don’t just review the certificate of location. They also examine the property’s title history. If there are prior transfers, unregistered deeds, missing acquittances, or estate-related complexities, the notary must confirm that everything is legally sound. Any ambiguity in the chain of title can trigger the need for insurance.
 

They assess legal risk from a long-term perspective. This includes conformity issues, of course, but also complications such as unregistered servitudes, undischarged mortgages, past transmissions, or overlooked pre-emptive rights held by third parties or former co-owners. Any of these could lead to serious legal consequences after closing.
 

They serve as legal advisors to both parties, explaining not only why title insurance is being suggested, but also what it covers and what it doesn’t. For many buyers, the notary is the first person to help them understand the policy in plain language, including how to make a claim if needed.
 

They carry personal liability for the decisions they make. If the notary misrepresents the file or overlooks something critical in the title insurance request, they can be held legally responsible. This makes them cautious, thorough, and sometimes conservative in recommending coverage.
 

They are often the last line of defence for the buyer. In complex transactions, especially those involving estates, multiple successions, POAs, or inherited properties, it’s the notary who brings legal clarity and may ultimately be the one to insist on title insurance to protect everyone involved.
 

Sabrina also pointed out that title insurance can serve as protection for the seller. Once a policy is issued and a disclosure is signed, the buyer can’t later claim damages against the seller. In other words, the seller is shielded from future legal action related to that issue. That was something I had never fully appreciated before.

She also reminded me that notaries don’t represent just one party. Unlike lawyers, they remain neutral, acting in accordance with the terms of the Promise to Purchase and its amendments. Their duty is to inform all parties, ensure transparency, and uphold the legal integrity of the transaction, regardless of who selected them.

As Sabrina put it:

“Whether you’re a buyer or a seller, in my eyes, you’re a client. The goal is that everyone walks away feeling informed and comfortable with the signing that took place.”
 

What Does Title Insurance Actually Cover?

My next step was to learn more about what an actual title insurance policy looked like. Reading a policy I obtained from one of our clients who dealt with a company called Stewart Title was a serious eye-opener. It included nearly 30 types of coverage, many of which I hadn’t fully appreciated or understood. Here are just a few examples that stood out and helped reshape my view:

Unpermitted Construction & Municipal Work Orders
In one real-life claim, a homeowner discovered post-purchase that the previous owner had built an extension without completing the required municipal inspections. The municipality issued work orders, and the buyer was on the hook. Title insurance covered nearly $80,000 to rectify the situation. This type of protection can be a lifesaver when a prior owner cuts corners.

Lack of Legal Access
In some rare cases, a property might not have legal access to a public road, even if a visible driveway exists. This can affect financing, resale, and long-term use. Title insurance offers protection against this kind of unseen legal gap.

Outstanding Compliance Notices
If there were unregistered work orders or deficiency notices issued against the property and they weren’t disclosed or discovered before the sale, title insurance can cover the cost of bringing the property into compliance.

Forgery or Fraud in Prior Transactions
If a previous mortgage discharge, deed transfer, or other document in the chain of title was forged or fraudulently executed, the policy may protect the new owner. These are situations that no broker, notary, or buyer could reasonably anticipate, yet they happen.

Errors in Public Records or Land Registry
Mistakes in legal descriptions, incorrect lot numbers, or undisclosed servitudes can all lead to major problems down the road. Title insurance provides a safety net in situations where a simple registry error could compromise ownership or use.

The more I read, the more I realized that this coverage isn’t just about solving known issues at the time of sale. It’s about shielding the buyer from unknown risks that could emerge later, through no fault of their own.
 

A New Responsibility

So, here’s where I land now. I still believe that sellers shouldn’t always be stuck with the bill, especially when the insurance is put in place to protect the buyer. But I also believe that, as brokers, both listing and buying, we need to do a better job of explaining title insurance, anticipating where it might come up, and educating our clients on what it is and what it isn’t.

That means:

-Reviewing certificates of location more closely, and earlier in the process
 

-Disclosing any known non-conformities up front and taking action if needed
 

-Talking to notaries in advance, rather than being surprised days before closing
 

-Being proactive, especially with estate files and inherited properties, where title issues are more likely to emerge
 

My team and I will be taking that responsibility more seriously in our practice. Our job isn’t just to market and negotiate. It’s to protect our clients from risk. That includes helping them understand when title insurance is being used as a tool, not a trap.