Quick take: Even though Alberta uses the Torrens land-titles system (the province guarantees title accuracy), title insurance still protects you from costly risks the government guarantee doesn’t cover — like title fraud, unpaid taxes or liens, survey/encroachment problems, building-permit issues, and closing “gap” risks. Most lenders require a lender’s policy; smart buyers add an owner’s policy for full protection. Sources: BLG, Alberta.ca, RECA, Canada.ca.
What is title insurance (in plain English)?
Title insurance is a one-time premium policy that protects against losses tied to your property’s legal ownership (“title”). There are two kinds:
- Lender’s policy: Protects the bank’s interest in your mortgage (often required).
- Owner’s policy: Protects you as the homeowner for as long as you own the property. See Canada.ca, Stewart Title.
Common covered issues include fraud/forgery, unknown liens or tax arrears, survey/encroachment defects, certain permit/zoning issues, and the cost to defend covered claims. Coverage details vary by insurer and policy. See Stewart, Stewart CA, FCT.
Alberta context: “Don’t we already have a guaranteed title?”
Yes — Alberta’s Torrens system guarantees the accuracy of what’s registered on title, and an Assurance Fund exists for specific losses from registrar mistakes or wrongful acts. But that doesn’t cover many off-title and post-closing risks (e.g., unpermitted work, encroachments discovered later, or identity-theft-driven title fraud). That gap is where owner’s title insurance shines. See RECA, Alberta.ca.
Calgary essential: RPR with municipal compliance vs. title insurance
In a typical non-condo Calgary sale, the seller must provide a current Real Property Report (RPR) with municipal compliance. The RPR is a land-survey drawing; the City’s Certificate of Compliance confirms the structures shown meet bylaw setbacks, etc. Title insurance doesn’t replace an RPR, but can solve certain last-minute issues or protect you if something was missed. See Alberta REALTORS®, City of Calgary, ALSA.
- Condos: Conventional condos do not generally require an RPR; bare land condos usually do (because you own the lot). Title insurance can still add fraud/encroachment/permit protection for both. (reference)
- When a buyer accepts title insurance in lieu of an RPR issue: It’s sometimes negotiated (case-by-case) but depends on the lender, the problem, and legal advice. Proceed carefully. See RMRF, Robertson LLP.
Why title insurance matters in 2025 Alberta
- Lenders often require it. Many mortgages won’t fund without a lender’s policy. (Canada.ca)
- It addresses Land Titles timing risks. Alberta introduced the Pending Registration Queue (PRQ) so registration priority is guaranteed upon submission, which helps during processing backlogs; title insurance commonly provides gap coverage between closing and final registration. See Alberta REALTORS®, FCT.
- Processing times can fluctuate. The province is actively modernizing Land Titles and is closing in-person counters (Sept 15, 2025) to reduce backlogs — a reminder that delays happen and risk-transfer tools matter. (Alberta.ca)
- Fraud is real. Federal consumer guidance highlights title fraud (identity theft → fraudulent sale or mortgage). Owner’s policies include fraud coverage and a duty to defend for covered claims. See Canada.ca, Dominion Lending.
What owner’s title insurance can cover (examples)
- Title fraud/forgery affecting your ownership or mortgage
- Unpaid taxes, utilities, or liens that attach to the property pre-closing
- Errors in public records that affect title
- Encroachments/boundary defects shown by a new survey
- Certain building-permit/zoning problems related to past owners’ work
- Legal defense costs for covered claims
Always review your specific policy wording with your lawyer. See Stewart Title (sample coverages).
How much does title insurance cost in Alberta?
It’s a one-time premium (no annual renewals) usually in the few-hundred-dollar range, varying by purchase price, property type, and insurer. Your real estate lawyer typically orders it for you at closing. See FCT, NerdWallet.
RPR + Title Insurance = Best practice
For most detached/townhome deals in Calgary, aim for both: a current RPR with compliance (to verify site realities) and an owner’s title policy (to transfer residual risks). For condos, confirm whether it’s conventional or bare land, then choose the right combo with your lawyer. (reference)
Buyer & seller checklists (copy-paste friendly)
Buyers
- Ask your lawyer for both a lender’s policy (if mortgaged) and an owner’s policy quote.
- Review the policy schedule for exceptions and endorsements.
- For houses/bare land condos, request the RPR with City compliance early.
- If issues pop up close to possession, ask whether title insurance can resolve without delaying closing. (City of Calgary)
Sellers
- Order/update your RPR as soon as you list (if required).
- Fix permit or encroachment items early; for minor issues, discuss title-insurance solutions with your lawyer. (reference)
FAQs
Is title insurance mandatory in Alberta?
No. But lenders often require a lender’s policy; an owner’s policy is optional but recommended. (Canada.ca)
How long does it last?
Owner coverage typically lasts as long as you own the home (and often protects heirs). (Stewart)
Does title insurance replace a home inspection or RPR?
No. It’s financial protection, not a physical inspection or survey. In Calgary, an RPR with compliance is still expected for houses and bare land condos. (reference)
What about “gap” coverage with Land Titles delays?
Policies commonly include gap coverage so you can close before final registration; Alberta’s PRQ also secures submission priority. See FCT, Alberta REALTORS®.
Who are the common insurers in Canada?
Examples include Stewart Title, FCT, TitlePLUS, and Chicago Title (availability and coverage vary). (Stewart)
This guide is general information only. Always confirm specifics with your real-estate lawyer and lender.
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