If I have a title insurance, why do I need a survey plan?

A: Title insurance is not "boundary insurance". Title insurance provides protection against certain deficiencies (listed in the policy) in the title to a parcel of land. In Ontario it is commonly used to close real estate transactions quickly. As a regulated financial product, title insurance promises to compensate an insured party for losses arising from a problem discovered after purchasing the property; however, title insurance does not reveal potential problems before you buy the land. Title insurance is also subject to exclusions from coverage, including issues or problems with fences, boundary walls and other items.

Title insurance can be compared to a warranty on a used car – good to have, but a prudent car buyer will also be sure to have a mechanic examine the vehicle and point out any hidden problems that could have serious and expensive consequences.

A professionally prepared survey plan protects your interests in the same way as the mechanic’s assessment, revealing potential property issues before you close. It provides solid, reliable information about the property in question: Will the land be suitable for your intended use? Are there any pitfalls or potential problems associated with the property or the boundaries? In turn, someday when you are ready to sell the property your primary concern will be if you have good and marketable title.

We recommend that homebuyers review the property survey plan with their lawyer and buyer's agent before closing the deal. If you suspect there are any problems, consider consulting a licensed land surveyor.

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