🧾 What Is Title Insurance?

Title insurance is a one-time policy purchased on closing that protects homeowners and lenders from issues related to the title of a property—things like liens, survey errors, title defects, and fraud. Some Ontario policies also offer limited protection for certain off-title risks, but it is not a renovation warranty and does not automatically cover building-permit, building-code, or zoning issues.

And here in Greater Sudbury, that limitation is even more important.

📘 If you ever want a plain-English refresher on legal and closing concepts, the Real Estate Dictionary (especially Legal & Contract Terms) is built for exactly this kind of situation.

🗞️ Why Are We Talking About This Now?

Recently, two local real-estate lawyers appeared before the City of Greater Sudbury’s Operations Committee to warn councillors about a growing issue affecting buyers and sellers: Sudbury’s unique lack of title-insurance coverage for building-permit problems.

What they shared has major implications for anyone buying or selling a home here.

🏛️ This is also one of those topics where local conditions matter a lot. If you’re newer to town, the Living in Greater Sudbury hub gives you a big-picture feel for how our housing stock, neighbourhoods, and infrastructure differ from many Ontario markets.

⚖️ What Lawyer Amanda Berloni Told the City

📌 Permit issues affect a huge percentage of transactions

During her presentation, local real-estate lawyer Amanda Berloni stated:

“Building permit issues affect approximately one-third of all residential real estate transactions in Greater Sudbury.”

 

One in three is a staggering number—and far higher than in most Ontario markets.

🔎 Why it happens

Berloni explained that Sudbury homeowners often complete work but do not formally close their building permits:

“Property owners do not formally close out their building permits after projects are complete.”

Since there’s no time limit on keeping a permit open in Sudbury, many files simply linger for years.

🧰 If you want a practical way to sanity-check property details while you shop, tools like MLS® Smart Search and the Building Permits & Development Tracker can help you spot patterns worth asking about early (before you’re in a rush at closing).

🧑‍⚖️ What the Sudbury District Law Association Told the City

The committee also received a submission from the Sudbury District Law Association (SDLA), which issued a significant warning:

“Greater Sudbury is one of the only Cities in the province where all title insurance companies exclude and/or significantly limit coverage for building permit issues.”
In other words, buyers and sellers here do not have the same safety net found in most other Ontario cities.

🏠 A Common Sudbury Scenario: Occupancy Permit Granted… Final Never Done

One of the most frequent real-world cases we see involves newer construction:

  • ✅ The builder completes most work.
  • 🏁 The City grants an Occupancy Permit.
  • 🧾 The final inspection—the one that officially closes the permit—is never completed.
  • ⏳ Years pass with the homeowner unaware.
  • 🚨 The issue only surfaces when the property is sold.

🧱 A real example: I’ve seen sellers forced to tear apart and rebuild an entire deck because it didn’t meet building-code requirements from the time it was constructed. Since the final inspection had never occurred, the City couldn’t close the permit without requiring full compliance.

In other municipalities, depending on the policy, title insurance might cover certain municipal orders. In Sudbury, according to the SDLA, that protection is excluded or heavily capped.

🧭 This is also where due diligence matters on both sides of the deal — from a buyer’s plan (Market Preparation and Making an Offer) to a seller’s prep (Seller Consultation and Hitting the Market).

✅ What Buyers and Sellers Should Do

  • 🕵️ Ask about permit history early—don’t wait until closing week.
  • 📄 Order a City permit/work-order search to confirm open or closed permits.
  • 🚫 Do not assume title insurance will cover permit issues in Greater Sudbury.
  • ⚖️ Speak with your real-estate lawyer early—every property and every policy is different.

🧰 For buyers who want to move fast without skipping steps, the Buyer Experience breaks the process down in a clean order, including Closing & Moving so you’re not learning this stuff under pressure.

🧠 Final Word

The City committee heard two clear messages:

  • 📌 Permit issues affect one in three Sudbury transactions (Berloni)
  • ⚠️ Sudbury is one of the only cities where all major insurers exclude building-permit coverage (SDLA)

Title insurance remains essential—but here, it is not a safety net for permit problems. The best protection is early due diligence and early communication with your lawyer.

📞 If you’re buying or selling and want to sanity-check risk early (before it turns into a closing-week scramble), start with the right lane:

 

Expect Moore for Your Real Estate!

Chad Moore | Lake City Realty LTD Brokerage