Common Title Issues in Ontario Real Estate And How a Lawyer Solves Them

When buying or selling property, one of the most important yet overlooked parts of the process is ensuring the property title is clear. A clean title means there are no outstanding claims, liens, or errors that could threaten ownership. Unfortunately, many homebuyers in Ontario discover title issues only after the transaction is complete, often when it’s too late to fix them easily. That’s why working with an experienced real estate lawyer in Ontario is crucial.

What Is a Property Title?

A property title is the legal documentation proving ownership of land or real estate. It includes the owner’s rights, boundaries, and any registered interests such as mortgages, easements, or encumbrances. Before closing, a lawyer conducts a title search to confirm that the seller has a valid right to sell and that no hidden issues exist.

However, even with digital records, mistakes and disputes are still common. Understanding the most frequent title problems can help you avoid unexpected legal and financial trouble.

1. Errors in Public Records

Even small clerical errors in public documents can cause significant headaches. Misspelled names, incorrect property descriptions, or registration mistakes can cloud ownership. These errors might seem minor, but they can delay closing or create future ownership disputes.

A real estate lawyer will identify and correct these issues by reviewing the land registry records and contacting the Land Titles Office if necessary. Legal professionals ensure your ownership record is accurate and legally enforceable.

2. Unknown Liens on the Property

A lien is a legal claim against a property, often arising when the previous owner fails to pay taxes, utility bills, or contractor fees. When you buy a property with an outstanding lien, the responsibility can transfer to you as the new owner.

A lawyer’s title search will uncover any liens or financial encumbrances before the deal closes. If one is found, your lawyer can negotiate with the seller to clear it before you finalize the purchase. This step is especially important for buyers involved in commercial leases or property investments, where large sums and complex financing are at stake. If you’re exploring commercial property, you can learn more about lease-related legalities with a commercial lease lawyer.

3. Boundary and Survey Disputes

One of the most common title issues in Ontario involves property boundaries. Disagreements may occur when a fence, driveway, or structure extends into a neighbour’s land. Old surveys, missing markers, or municipal errors often cause these conflicts.

A real estate lawyer reviews the survey plans and can work with a surveyor to verify boundaries before closing. If a boundary issue arises after purchase, your lawyer can help resolve it through negotiation or, if necessary, legal action. Addressing these concerns early prevents lengthy disputes and protects your property rights.

4. Undisclosed Easements and Rights-of-Way

An easement allows someone else the right to use a portion of your property for a specific purpose, such as access to a shared driveway or utility maintenance. Easements can limit what you can build or how you can use your property, and they often aren’t obvious until a title search reveals them.

Your lawyer’s due diligence includes checking for registered easements and explaining how they affect your ownership. Knowing these restrictions in advance allows you to make informed decisions before signing any agreement.

5. Fraud and Forgery in Real Estate Transactions

Real estate fraud has become increasingly sophisticated in recent years. Criminals may impersonate property owners, forge signatures, or use stolen identification to sell or mortgage a property that isn’t theirs. In Ontario, such fraud can result in serious financial loss and emotional stress for victims.

A knowledgeable real estate lawyer can protect you from these risks by verifying ownership details, ensuring the seller’s identity is authentic, and confirming that all documents are valid. They also recommend title insurance, which provides financial protection against undiscovered fraud or errors that surface after closing.

6. Undisclosed Heirs or Ownership Claims

Sometimes, a previous owner may pass away, and heirs later claim rights to the property that was sold without their consent. These undisclosed ownership claims can invalidate a sale or complicate your title even years later.

During the title search, your lawyer investigates the property’s ownership history to ensure there are no missing signatures, estate disputes, or pending claims. This careful review helps secure your ownership and provides peace of mind.

7. Encroachments and Unregistered Interests

Encroachments happen when a neighbour’s building, deck, or fence crosses onto your property or vice versa. These are common in older neighbourhoods where survey lines have shifted or been forgotten.

Your lawyer will compare current surveys and land registry information to identify any encroachments. They can then negotiate resolutions such as easement agreements or boundary adjustments. For new buyers, addressing these issues before closing avoids future disputes and unexpected legal expenses.

How a Real Estate Lawyer Solves Title Issues

A real estate lawyer in Ontario does more than just register paperwork; they protect your ownership rights at every stage. Here’s how they help resolve title problems efficiently:

1. Comprehensive Title Search: Reviewing the property’s legal history to uncover liens, easements, or ownership disputes.
    
2. Correcting Public Records: Requesting amendments for clerical or registry errors.
    
3. Negotiating with Sellers: Ensuring all outstanding debts, liens, and encumbrances are cleared before closing.
    
4. Drafting Legal Protections: Including title warranties in the purchase and sale agreement to safeguard the buyer.
    
5. Coordinating Title Insurance: Advising on insurance policies that cover undiscovered issues, fraud, or defects.
    

If you’re preparing to buy or sell, working with an experienced lawyer for purchase and sale can save you from significant financial loss. Learn more about the legal process of property transactions at Khan LLP’s purchase and sale page.

Why Title Insurance Is Worth It

While title insurance is not legally required in Ontario, most lawyers recommend it. It provides coverage for future claims, fraud, or hidden defects not found during the title search. It’s a one-time cost that can save thousands in legal fees and potential property loss. Your real estate lawyer can help you understand what your policy covers and ensure it complements your ownership needs.

Title issues can turn a simple property purchase into a stressful legal battle. Whether it’s an old lien, a forgotten easement, or a boundary dispute, these problems can threaten your rights as a homeowner. The safest and smartest way to protect your investment is by hiring an experienced real estate lawyer in Ontario who performs a meticulous title search and guides you through every legal step.

At Khan LLP, our legal team ensures every transaction, from purchase and sale agreements to commercial leases, is handled with precision, transparency, and your best interests in mind. With professional guidance, you can move into your new property with complete confidence that your title is clear and secure.