In October 2025, about 150 homeowners in Richmond, BC received letters that would send shockwaves through Canada's real estate market. The City was warning them that a court ruling might affect their property ownership—not because of anything they'd done wrong, but because the land their homes sit on was subject to an Indigenous land claim dating back over 150 years.
Welcome to one of the most complex questions facing Canadian homeowners: what happens when Aboriginal title meets modern property rights? And more importantly, does your title insurance protect you?
The Short Answer
Most title insurance policies explicitly exclude coverage for Aboriginal or Indigenous land claims. While some limited protection may exist for certain urban properties, homeowners facing land claim challenges are largely on their own. Here's what's happening and why it matters.
Native Land Claims in Richmond, B.C
In August 2025, a BC Supreme Court judge made a landmark ruling: the Cowichan Tribes hold Aboriginal title to about 732 acres in southeast Richmond, including land with private homes, businesses, and industrial properties. The court said that Crown grants giving people "fee simple" ownership, what we normally think of as owning property, didn't extinguish the Indigenous people's underlying Aboriginal title.
The immediate effects were dramatic. Banks started refusing mortgages and refinancing in the area. A $100 million development project lost its financing. Property values began falling. And approximately 150 private homeowners discovered they were caught in a legal dispute they didn't know existed.
Here's the twist: the Cowichan Tribes weren't actually trying to take anyone's house. They wanted recognition of their rights and return of government-owned land. But the court's ruling created uncertainty about whether Aboriginal title and private ownership can exist over the same property at the same time—a question nobody has clearly answered.
Caledonia Land Claims
This isn't the first time Canadians have grappled with these issues. In Caledonia, Ontario, near Hamilton, the Six Nations have been asserting claims over lands granted to them in 1784. In 2006, protests shut down a housing development for months. The Ontario government eventually bought the land and paid $20 million to settle a class action from affected residents and businesses.
In 2020, it happened again at another development site. The pattern reveals an uncomfortable truth: we've built towns, cities, and lives on lands where the original questions of ownership were never properly resolved.
Canada has a complicated history with Indigenous land rights. When European settlers arrived, they didn't always get clear agreements about land. In British Columbia, very few treaties were ever signed. In Ontario, treaties exist but weren't always honoured.
For decades, everyone operated as if these old questions didn't matter. The government issued land grants, people bought and sold properties, and the modern real estate system functioned. But in 1973, the Supreme Court of Canada recognized that Aboriginal title—the rights Indigenous peoples have to their ancestral lands—still exists and was never automatically extinguished.
This created a problem: Aboriginal land claims can't be registered on property title like a lien or mortgage. So when you do a title search before buying a house, these claims simply don't show up. The government maintains databases of land claims, but they're incomplete and not updated in real-time. You could buy a property in good faith, having no idea a claim exists.
Will title insurance cover a land claim?
Title insurance companies are in the business of protecting homeowners from defects in title. Problems with who legally owns the property. But Aboriginal land claims are a unique challenge:
They can't be searched: Unlike most title issues, there's no reliable way to identify these claims when you buy property.
They can affect thousands of properties at once: A single successful claim might impact entire neighbourhoods or municipalities.
The law is still developing: Courts are still figuring out basic questions like whether Aboriginal title and private ownership can coexist, making it impossible for insurers to price the risk.
As a result, virtually all title insurance policies in Canada contain exclusions stating they don't cover losses from Aboriginal or Indigenous land claims. Some insurers may provide limited coverage for urban residential properties under certain conditions, but even that protection has significant limitations.
What This Means for Homeowners Impacted
If you're buying a property, you should know:
- Your title insurance probably doesn't cover this risk. Read your policy exclusions carefully and ask your insurer specific questions about Aboriginal land claims.
- British Columbia has higher exposure because less of the province is covered by historical treaties. Ontario has more treaty coverage but still has active claims in many areas.
- Waterfront and rural properties face greater risk than urban properties connected to municipal services, though the Richmond case shows even established urban areas aren't immune.
- There's no perfect way to check. You can review government websites listing active claims and search news archives, but these sources aren't comprehensive or current.
If you already own property in an area affected by a land claim:
- Don't panic. Most First Nations are seeking recognition of their rights and return of government-held lands, not trying to take people's homes.
- Stay informed. The Richmond case is under appeal and could take years to resolve. Legal precedents are being established that will affect how these issues are handled across Canada.
- Document everything. Keep your purchase records, evidence of improvements, and property tax payments. The legal concept of "bona fide purchaser"—someone who bought in good faith without knowledge of problems—may offer some protection.
- Talk to your lender proactively if you're in an affected area and need to refinance or renew your mortgage.
What to Do
If you're buying:
- Ask your real estate lawyer specifically about Aboriginal land claims in the area
- Review your title insurance policy exclusions in detail
- Research active claims through government websites
- Understand that complete protection may not be available
If you own:
- Monitor news about land claims in your region
- Don't assume the worst—most claims seek government lands, not private homes
- Keep all property documentation organized
- Consult a real estate lawyer if claims affect your area
Disclaimer: This article provides general information only and does not constitute legal advice. Always consult with a qualified real estate lawyer regarding your specific situation.
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