Short answer
The title search confirms who legally owns the property and identifies registered interests such as mortgages, transfers, leases and other instruments. Your lawyer then determines what must be discharged, insured over, accepted or investigated before the lender’s mortgage can obtain the required priority.
Why this becomes a closing problem
The buyer and lender are ready, but the lawyer finds an unexpected charge, easement, name discrepancy or registration. The mortgage approval is still valid financially, yet the lender cannot safely fund until the title issue is addressed.
A practical Ontario example
A seller says the old line of credit was paid years ago, but its collateral charge remains registered. A zero balance is not the same as a discharged charge. The seller’s lawyer must obtain and register the proper discharge or arrange a lender-approved solution.
How the lending routes may differ
- A lender: normally expects clear and marketable title with its mortgage in the approved priority.
- Alternative/B lender: may accept some complexities differently, but the lawyer must still satisfy the commitment and title requirements.
- MIC/private lender: may consider a different priority or title-insurance structure, subject to equity, legal advice and the lender’s express approval.
Important boundary: Ontario legislation and legal-registration requirements are not lender underwriting policies. Each lender decides its acceptable borrower, property, priority and documentation requirements, while the closing lawyer determines the legal work needed.
Questions to ask now
- Who is registered as owner?
- Which charges or notices must be discharged?
- Are there easements or restrictions affecting use or value?
- Has the lender approved the lawyer’s proposed solution?
Rajiv’s practical view
Send the purchase agreement and lawyer information early. Title problems discovered two days before closing leave less time to negotiate a discharge, amendment or backup mortgage structure.
Source and context
This is general Ontario education, not legal, tax or title advice. Obtain transaction-specific advice from the closing lawyer and other appropriate professionals.
Continue your research
Closing-problem guidance · Real Estate Centre · Mortgage Knowledge Centre
Need the right real-estate lawyer before a closing deadline?
Send Rajiv the city, property type, closing date and legal concern. He can help connect you with an appropriate Ontario real-estate lawyer while coordinating the mortgage questions. You decide whether to retain anyone referred.
Could this title issue affect mortgage funding?
Request a second opinion before the closing becomes urgent. Rajiv can review the financing impact and explore A, alternative/B, MIC or private routes where appropriate.
Book a mortgage strategy session
Rajiv Verma, Mortgage Broker · Ontario