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Mortgage Glossary

What is Title?

Title is the legal evidence of ownership of a property. It establishes who owns the home and records any rights, charges, or claims against it, such as a mortgage, lien, or easement. When you buy a home, title is transferred to your name and your mortgage lender registers a charge on it until the loan is repaid.

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Quick answer

Title is the legal evidence of ownership of a property. It establishes who owns the home and records any rights, charges, or claims against it, such as a mortgage, lien, or easement. When you buy a home, title is transferred to your name and your mortgage lender registers a charge on it until the loan is repaid.

Also known as: Property title, Land title

Key points

  • Title is the legal record of property ownership and registered claims.
  • Your mortgage is registered as a charge against title until repaid.
  • Charges rank in order, which determines who is paid first if the home is sold under default.
  • A lawyer or notary searches title before closing to confirm clear ownership.
  • Title insurance can protect against fraud, survey errors, and hidden liens.

Title explained

In Canada, property ownership is recorded through provincial land registration systems. Title shows the registered owners and the order of any charges against the property. Your mortgage is one such charge: it gives the lender a registered interest in the home as security until you pay off the loan. Other entries can include property tax arrears, construction liens, or rights-of-way.

Before a purchase closes, a lawyer or notary searches title to confirm the seller has clear ownership and to identify any registered claims that must be dealt with. Buyers often obtain title insurance to protect against problems such as fraud, survey errors, or undisclosed liens that a search might not catch.

What a Title is for

Title exists to provide a reliable, public record of who owns a property and what claims affect it. It lets buyers, lenders, and lawyers confirm ownership and security interests before money changes hands, reducing the risk of disputes after closing.

How it can help you

A clean title gives you confidence that you are buying a property free of hidden claims and that your ownership is legally protected. Understanding how your mortgage registers as a charge also clarifies what happens at renewal, refinance, or sale. When financing, Lenderoo shops 40+ lenders for free so you can line up the mortgage that will be registered against your new title.

When it comes up

During a purchase, the buyer's lawyer searches title and discovers an old lien from a contractor. The lawyer requires the seller to clear the lien before closing, ensuring the buyer takes ownership with clean title and the lender's charge sits in first position.

Example: Charges on title

A buyer purchases a home for $500,000 with a $400,000 mortgage. At closing, title transfers into the buyer's name and the lender registers a $400,000 charge against the title as security.

If the buyer later takes a second mortgage, that lender registers a further charge behind the first. When the home is eventually sold, the sale lawyer uses the title to pay off each charge in order of priority before releasing the rest to the seller.

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Questions & answers

Title: frequently asked questions

Common questions Canadians ask about title.

Keep learning

Related mortgage terms

Closing Costs

Fees and expenses paid when finalizing a real estate transaction

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Lender

A financial institution or company that provides the money for a mortgage.

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Second Mortgage

An additional loan secured against a property that already has a first mortgage registered on its title.

Read definition

Foreclosure

Legal process where a lender takes possession due to non-payment.

Read definition

Property Tax

An annual tax on real estate charged by your municipality.

Read definition
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