By Rory Hale – REALTOR®, Rural Properties & Acreages near Calgary
Have you ever wondered what title insurance is? Do you need it? What are the benefits?
You might ask about an RPR (Real Property Report) and whether it covers everything. In this article, we will provide you with all the details you need, and perhaps even more information than you anticipated.
The simple answer to your questions is that you need at least one of these for your protection moving forward. If possible, I recommend getting both, as the cost is minimal compared to the potential drawbacks of not having them. While your insurance provider and mortgage broker would prefer that you have an RPR, title insurance is an essential requirement if you don't have one.
Title Insurance
In Alberta (and across Canada), title insurance is an insurance policy that protects property buyers and mortgage lenders against certain losses related to the property’s title or ownership. It does not replace a legal land survey or a lawyer’s due diligence, but it adds an extra layer of financial protection.
Here’s what title insurance can typically protect you against in Alberta:
✅ Title Defects or Ownership Issues
Errors or omissions in public records (e.g. land titles registry mistakes)
Fraud or forgery affecting the ownership (like someone fraudulently selling the property)
Someone else claiming an interest in your title (e.g. a previous owner or heir)
✅ Survey or Boundary Problems
Encroachments not discovered before purchase (e.g. a neighbour’s garage partially on your land)
Violations of municipal zoning bylaws (e.g. additions built without permits)
✅ Outstanding Work Orders or Liens
Unknown liens on the property, like unpaid property taxes or contractor liens from the previous owner
✅ Building Permit Issues
Past renovations or additions completed without proper permits that come back to haunt you
✅ Access Rights
Issues where legal access to your property (driveways, utility easements) is blocked or disputed
✅ Title Fraud
Someone impersonating you or forging documents to take out mortgages or sell your home
✅ Gap Coverage
Covers issues that might arise in the short “gap” between the closing date and registration of title in your name
What Title Insurance Does Not Cover
❌ Known problems you were aware of before buying
❌ Environmental contamination (like soil pollution)
❌ Native land claims
❌ Property value changes due to market conditions
❌ Wear and tear or physical defects (e.g. roof leaks, foundation cracks)
Cost of Title Insurance in Alberta
Usually a one-time premium (not monthly payments)
Cost ranges roughly $200–$500 for residential policies, depending on your purchase price
Policies remain in effect as long as you own the property
Is It Mandatory in Alberta?
Not mandatory by law
Many lenders require title insurance as a condition of your mortgage
Even if not required, it’s often recommended for peace of mind
Bottom line: Title insurance in Alberta can save you from major headaches and unexpected costs due to hidden legal or title issues. It’s a relatively low-cost way to protect your biggest investment.
A Real Property Report (RPR)
is a legal document prepared by an Alberta land surveyor. It’s essentially a detailed map of your property, showing where all permanent visible structures sit relative to your property boundaries.
Here’s what protection or value an RPR gives you:
✅ Confirms Property Boundaries and Dimensions
Shows the exact size and shape of your lot
Identifies where structures (house, garage, sheds, fences, decks, driveways, etc.) sit on your property
✅ Reveals Encroachments
Tells you if your neighbour’s fence or structure crosses onto your land (or vice versa)
Helps avoid legal disputes over land boundaries
✅ Municipal Compliance Confirmation
Many RPRs come with a municipal compliance stamp from the local city or town
Confirms structures comply with local bylaws, zoning, and setback requirements
Prevents future demands from the city to remove or alter structures
✅ Essential for Property Sales
Sellers are usually obligated under the standard Alberta residential purchase contract to provide a current RPR with compliance
Helps buyers feel secure they’re buying what they think they’re buying
✅ Easements and Rights-of-Way
Identifies utility easements or rights-of-way that might affect your use of parts of your yard
What an RPR Does Not Protect You Against
❌ Title defects (e.g. fraud, errors in the land titles registry)
❌ Hidden liens or financial claims on the property
❌ Legal ownership disputes unrelated to physical boundaries
❌ Physical defects inside the buildings
❌ Changes made after the date of the RPR (it’s a snapshot in time)
When is an RPR Needed?
Almost always required when selling a property
Sometimes required for renovations or new construction permits
Good idea for peace of mind, even if you’re not selling
Cost of an RPR
Typically $600–$1,200 or more, depending on property size and complexity.
Riral RPRs can be more expensive as the size of the property and travel to the location factor in
Additional fees if you need a new municipal compliance stamp
Bottom line: An RPR protects you by confirming what is physically on your land and where, ensuring compliance with municipal rules, and avoiding boundary or encroachment disputes. It’s one of the best ways to avoid nasty surprises when buying or selling a property.
