RESIDENTIAL TITLE INSURANCE
Updated: May 30
Information obtained from: https://fct.ca/legal-professionals/residential-title-insurance/
Residential title insurance protects your homeowner and lender clients against losses associated with title fraud, as well as survey* and title issues.
Unlike traditional insurance, FCT covers things that may happen in the future (e.g. title fraud), as well as things that have happened in the past (e.g. pre-existing, unknown work orders and zoning violations).
If the insured’s interest in the property is ever challenged due to a covered risk, we will defend them and pay any associated costs, legal fees or expenses.** That’s what we call our “duty to defend”.
● Title insurance reduces the number of searches you need to complete, allowing you to get your clients’ deal finished faster.
● Your clients save money by using title insurance instead of an up-to-date, costly survey* to appease most lender requirements.
● Our no-fault claims process means we assume the responsibility and costs of defending your clients’ title if they suffer a loss for a covered risk.
The most common issues covered under our homeowner’s policy include, but are not limited to:
Municipal issues If improvements were made to the homeowners’ house before they purchased it (the basement was finished, an addition built or a deck added), they could find out after closing that the required permits were not obtained. At any time, their local municipality could force them to remove or remedy the improvement, which could cost thousands. A homeowner policy can cover the cost to correct these issues.
Encroachments Sheds, laneways, homes and garages are sometimes unintentionally built on neighboring properties and need to be moved. This can easily happen if a previous owner built without verifying where the lot lines were. A homeowner policy can protect your clients against financial loss associated with encroachment issues.
Fraud and forgery Our underwriting process works to stop potential fraud before it occurs and protects your clients against title fraud. If someone forged homeowners’ signatures without their knowledge and registered a fraudulent mortgage on their home, the onus is on the homeowners to prove that fraud was committed. This can be very costly–financially and emotionally–to resolve. A homeowner policy from FCT can cover the legal expenses and costs to prove that fraud was committed.
Tax and utility payments If the previous homeowner was not up-to-date on payments and the accounts are in arrears, a homeowner policy can cover the outstanding payments.
Title defects The experience of our underwriters allows us to be flexible and customize policies to cover many known and unknown title defects such as charges, liens or encumbrances that could affect the title to your client’s property.