Back when ....
At one time -- and admittedly it was several hundred years ago -- buying real estate was an extremely simple affair.  You went out -- probably on foot -- to a parcel of land you were interested in.  You met the owner there and gave him a bag of gold.  He then snapped a twig off one of his trees and handed it to you.
And that was it.  The tree itself and everything that went with it were now yours.
But then came the lawyers and they thought that some written records were advisable.  In time, these led to legal descriptions and precise locations that incorporated -- heaven help the layman! -- such things as metes and bounds.
To make matters worse, though, the lawyers were followed by real estate agents who started to introduce paperwork of their own.  The effect was to progessively add to the form filling and need for signatures, particularly in terms of clauses that could be considered necessary.  These are still being introduced, modified, and reworded, with little sign that they'll reduce in number or import -- although, if truth be told, nowadays this isn't always because the ideas behind them lie with the agents themselves. Rather, to compound things still further, governments at all three levels (municipal, provincial, and federal) began to get into the act.  The consequences were rules, regulations, permissions, doublechecks, what-ifs, wherefores, and a host of political correctnesses and niceties, all of them with no apparent chance of being removed from the Statute Books any time soon.
Ah, for the good (very) old days, eh?
 
But wait a minute ....
Not all that long ago, a new set of players came onto the scene:  the Title Insurance companies -- and this manages to both complicate and simplify things another notch or two, although it's something you can expect your lawyer to discuss with you and help you decide upon or not.
The concept can be seen as something of an adjunct to the Buyer Agency idea.  It, too, was born in the USA but came across the 49th parallel only in the 1990s (much like the thought of representing buyers [as well as or, more exactly, instead of sellers] managed to do).
There's no doubt, though, that its focus is on the buyer, and its effect is to overcome surprises that can arrive not only before a sale closes but also when they turn up after the fact.
Needless to say, because we're talking insurance, there's no lack of fine print involved.  Nevertheless, the principles are clear enough and they can be more or less summarized as follows.

•    You are protected against the possibility of any last minute hitch that could delay closing.
•    Your bank has a guarantee that nothing will suddenly put its loan to you at risk.
•    In both cases, the idea is to make quite sure that your title to the property is free and clear of any defects.
•    It overcomes the absolute need for a survey or replacement of an outdated one.
•    It overcomes problems related to such things as outstanding tax arrears and undischarged mortgages or liens.  This doesn't, of course, mean that the insurance company will pay off what's owing.  It will, however, ensure that the appropriate party does and that your purchase can go through without waiting for this to happen.
•    It overcomes problems related to such things as outstanding works orders and previously unrecognized encroachments and easements.  Again, the insurance company won't pay for having the corrections made, the responsibility sometimes being the seller's, sometimes the buyer's, and sometimes someone else's.  It will, however, allow your transaction to close in time while the remedies can be put into effect afterwards.
•    It overcomes any challenge to your title, regardless of its reason.  Not the least, the insurance company will cover any legal costs involved in defending your right to ownership.
•    By one means or another, it also protects you against the rare (although, alas, increasing) risk of fraud that could -- or indeed does -- affect your title.

I should, needless to say, emphasize that we're talking title defects, not structural faults, mechanical failures, or the like.  The single focus is on items and events that could lose -- and/or delay -- your right to own the house.
But don't think they don't -- or might not -- happen.  Almost any real estate lawyer is able to recount a horror story or two in this regard.

Money well spent
Also somewhat on the lines of the Buyer Agency idea, there isn't really any cost involved in making title insurance part of the closing process.  There's a one-time premium, payable at the time, that largely negates the need to pay a series of search and filing fees.  In most cases, the net effect is, as it were, that you pay for a policy instead of a lot of disbursements.
Title insurance isn't, in fact, mandatory, but lawyers are now required to raise the idea with you.  Moreover, they can help you participate in a TitlePLUS policy, which is available through the Law Society.
There are also one or two private insurance companies, most of whom have existed for some long time in the USA -- and, of these, First Canadian Title is, without doubt, the major player in the Canadian market.
Detailed information on the web regarding the topic is a little sparse, at least as far as a potential purchaser's curiosity is concerned.  However, one of First Canadian's pages aimed at the legal profession provides a good snapshot of the available coverage.  In addition, it's perhaps interesting that you can add title insurance to any home that you presently own, as another of First Canadian's pages explains.
If nothing else, the unfortunate increase in mortgage fraud adds to the argument for seriously considering this latest addition to the process of buying -- and especially financing -- a home nowadays.
And, ahem, let me assure you that no one is paying me to say all this!
  
Exceptions to the rule
I may appear to be making like a lawyer here, but this is unquestionably not the case.  Rather I'm merely urging you to take note of what your lawyer suggests when the time comes to discuss and finalize the closing.  Indeed, I've long since maintained that members of the legal profession are worth every red cent home buyers pay them -- as witness one of my earliest newsletters.
Nevertheless, you may well be advised that not every purchase calls for title insurance.  Many condo apartment and townhouse complexes are governed by a Management Committee.  Most new home buyers are protected by the rules and regulations imposed upon the building industry.  And, although title insurance can be extended to a variety of commercial properties, not all of them have the need of it.
In any case, do what your lawyer tells you, says I.
And he/she isn't paying me to say this, either!!
 
With my customary warmest regards to everyone.