When you buy a home, one of the most important terms you’ll hear is “title.” While it may not come up in everyday conversation, it plays a key role in every real estate transaction.

Title is the legal ownership of a property. When you purchase a home, you are not just buying the building or land, you are also receiving the legal rights that confirm it is yours.

Before a lender can release mortgage funds, they need to ensure the title is clear. This is because the property is used as security for the mortgage.

A lawyer completes a title search to review the property and confirm there are no issues that could affect ownership. This includes things like fraud concerns, survey errors, municipal work orders, zoning violations, or encroachments from neighbouring properties.

If anything is found, it must be resolved before closing to ensure the transfer of ownership can proceed smoothly.

Once the title is clear, the mortgage is registered on title. This simply means the lender’s financial interest in the property is officially recorded. It does not affect your ownership, but it protects the lender while the mortgage is in place.

This step often happens behind the scenes, but it is essential to making sure your purchase is legally sound and secure when you take possession.

If you ever want help understanding the steps between an accepted offer and closing, we’re here to help.

– Michele McGarvey Team, Dominion Lending Centres