A title search is the process of examining public land records to confirm who legally owns a property and to identify any liens, encumbrances, or other claims registered against it. In Ontario, your real estate lawyer conducts a title search before closing to make sure the seller has the legal right to transfer ownership and that you will receive clear title.
The core document your lawyer pulls is the parcel register, which is the official record for a property within Ontario's electronic land registration system, known as POLARIS and operated by Teranet. Every property in the system is identified by a unique nine-digit property identification number, or PIN. The parcel register shows the current registered owner, the property's legal description, and a history of all instruments registered against title. Those instruments can include transfers, charges (the Ontario term for a registered mortgage), liens, easements, and other encumbrances.
Your lawyer does not stop at the parcel register. A separate search for writs of execution is also required. Writs are filed against a person's name rather than a specific property, but they can attach to any real estate the named debtor owns within that sheriff's jurisdiction. If an outstanding writ matches the seller's name, the issue must be resolved before the transaction can close. Your lawyer will search the Ontario Writs System through Teranet to check.
Some encumbrances are expected. The standard OREA Agreement of Purchase and Sale lists a set of permitted encumbrances, such as existing utility easements or municipal agreements, that a buyer agrees to accept. Other registered interests, like an unpaid construction lien or a certificate of pending litigation, would be considered title defects. If your lawyer discovers a defect that falls outside the permitted encumbrances, the seller is obligated to clear it before closing or the buyer may have grounds to refuse to complete the purchase.
The title search is one of the reasons Ontario requires that a lawyer handle every residential real estate closing. It protects you from inheriting someone else's debts or legal disputes along with the property. To learn more about what your lawyer handles throughout the transaction, read What does a real estate lawyer do when you buy or sell a home in Ontario?
Related reading: What Does a Real Estate Lawyer Do When You Buy or Sell a Home in Ontario?, What Is an Easement and How Does It Affect Property Ownership in Ontario?, and What Is Title Insurance and Do You Need It When Buying a Home in Ontario?.