The most common title problems on Ontario homes are liens, encroachments, easements, open permits, estate or family law issues and, occasionally, fraud. Older bungalows see these more often because they’ve changed hands, been renovated and had fences moved over many decades. The good news: a real estate lawyer and title insurance catch or cover most of them.
Key takeaways
- “Title” is your legal ownership, and problems can limit or cloud it.
- Your lawyer searches title and fixes most issues before closing.
- Older bungalows often have fence, addition or permit issues.
- Title insurance covers certain defects that searches can miss.
What is a title problem?
Title is your legal right to own and use a property. In Ontario, ownership is recorded in the provincial land registry. A title problem is anything registered, or anything on the ground, that limits that right or makes it uncertain.
Some issues are simple paperwork. Others can affect what you can build, how you can use the yard, or whether the deal can close on time. Knowing the common ones helps you ask the right questions early.
The most common title problems in older bungalows
1. Liens and unpaid debts
A lien is a claim registered against a property for money owed. Contractors can register construction liens for unpaid work. A seller’s existing mortgage is also a registered charge. Your lawyer makes sure these are paid off and removed at closing.
2. Encroachments
An encroachment happens when something crosses a property line. In older neighbourhoods, it’s often a fence, shed, driveway or garage that’s a little over the line. Sometimes neighbours have lived with it for decades. A survey shows where the true lines are.
3. Easements and rights of way
An easement gives someone else the right to use part of your land, such as a utility company or a neighbour who shares a driveway. Easements usually stay with the property when it sells. Learn more in our guide on what an easement is.
4. Open permits and work orders
Many bungalows have additions, decks or basement apartments. If permits were opened but never closed, or the city issued a work order, the problem can follow the house. You may face extra costs to bring the work up to code.
5. Estate and family law issues
Plenty of bungalows are sold by estates. The executor may need court approval before closing, which can cause delays. In other sales, a spouse who isn’t on title may still need to consent to the sale of a family home under Ontario law.
6. Title fraud
Title fraud is rare but serious. A fraudster might pose as the owner to sell or mortgage a property. Mortgage-free homes owned by older people can be targets. Lawyers verify identity, and title insurance often covers fraud losses.
How each problem is usually solved
| Problem | Who finds it | Typical fix |
|---|---|---|
| Lien or old mortgage | Lawyer’s title search | Paid from sale proceeds and discharged |
| Encroaching fence or shed | Survey | Agreement with neighbour, removal or title insurance |
| Easement | Title search and survey | Usually stays; you decide if it’s acceptable |
| Open permit or work order | Lawyer’s municipal searches | Seller closes permit, price adjustment or holdback |
| Estate sale paperwork | Lawyers on both sides | Executor confirms authority before closing |
| Identity fraud | Lawyers’ ID checks | Prevention plus title insurance coverage |
Do you need title insurance?
Most Ontario lenders require title insurance, and most buyers get it. It protects you against certain losses from title defects, survey issues, some unpermitted work and fraud. It’s usually a one-time cost paid at closing.
Title insurance doesn’t replace a lawyer’s search. Think of it as a backup that covers things a search might miss, especially when no recent survey is available. Ask your lawyer what the policy covers and what it excludes.
Bungalow tip: If a bungalow has a basement apartment, a sunroom or a garage that looks newer than the house, ask the seller for the permits before you make your offer firm.
How to protect yourself before you buy
- Hire your lawyer early, ideally before you submit an offer.
- Ask for the survey. Even an older one helps your lawyer spot issues.
- Ask about permits for any additions, decks or basement units.
- Allow enough time before closing so your lawyer can complete searches.
- Read the listing notes for words like “estate sale” or “as is”.
- Get title insurance, and ask what it covers.
For a wider look at the paperwork you should gather and keep, see our guide to home ownership documents.
Frequently asked questions
Who checks for title problems when I buy a house?
Your real estate lawyer searches title and runs municipal and other searches before closing. They’ll tell you about anything that needs fixing.
Can a title problem stop a sale from closing?
Yes, if it’s serious and can’t be fixed in time. Most issues are solved before closing, sometimes with a short extension or a holdback of funds.
Does title insurance cover unpermitted renovations?
Some policies offer limited coverage for certain unpermitted work done before you bought. Coverage varies, so ask your lawyer to explain your policy.
The bottom line
Most title problems are fixable when they’re found early. Older bungalows simply have more history, so give your lawyer time and the documents they need.
This is general information, not legal advice. Speak with an Ontario real estate lawyer about any specific property, and read our guide on why you need a lawyer to close. When you’re ready to shop, our buyer’s guide walks you through each step.
