What a title search does in Canadian mortgage closings and why it matters before funds are advanced.
A title search is the review of the property’s title records to confirm ownership and identify registered interests or issues that could affect the transaction.
The lender wants to know that the borrower is getting clean enough title for the mortgage to be properly registered. The buyer also needs to know whether there are liens, easements, judgments, or other issues that could complicate ownership.
In a Canadian closing, the buyer’s lawyer or notary typically handles the title review before funds are advanced. The process may involve electronic land registration systems, title insurance considerations, prior charges, and province-specific registration practice.
This is one reason Canadian closings feel document-heavy. The mortgage is not just about rate and payment. The lender’s security must be able to attach properly to the property.
Before closing, the lawyer or notary checks title to confirm the seller can transfer the property and to identify any registered items that need discharge, payout, or explanation before the lender advances the mortgage funds.
A title search is not the same thing as a home inspection or appraisal. It is a legal and registry review, not a condition or value review.
Borrowers also sometimes think title search matters only to the lender. It matters to both lender and buyer because both care about what is actually registered against the property.
The exact process, registry system, and supporting insurance or legal tools vary by province and by lawyer or notary workflow.