Definition
Title insurance covers the buyer and lender against legal issues related to the property title that existed before the purchase date: encroachment on a neighbouring lot, undisclosed easements, errors in previous deeds, unregistered legal hypothecs, or fraud by a previous seller.
In Quebec, title insurance is offered by specialized insurers (Stewart, FCT, Première Canad.) at a one-time cost of $150 to $400 depending on property value — no annual renewal. It complements (without replacing) the notary's role, who conducts a title search but cannot guarantee against all historical errors.
Some lenders accept title insurance in lieu of a recent location certificate when updating the certificate would take too long or cost too much. This is a decision to evaluate with your notary.