Before a property can change hands, the buyers lawyer must do a title search of past transaction guaranteeing that there are no problems hanging over the property. I once did this for a living and can tell you it's labour intensive (and sometimes very interesting).
The other part of the search is "off title" which involves checking to see if the hydro is fully paid and the furnace has been paid for (no liens registered).
Both are vital to securing clear title to any property that changes hands in Ontario.
Title insurance is usually recommended in lieu of performing the first search. It's relatively cheap.
As to it's value if there is a dispute over title, I really can't say. Have you ever had to fight an insurance company for a claim? You tell me.
