John Rider Andrea Campbell
Title Insurance Safeguards in British Columbia
T
he purchase of a strata unit in the heart of Vancouver is very different from the purchase of a country home in Burns Lake. The same goes for the title insurance policy obtained on closing. Each title insurance policy is tailored to address the specific nature of the property, whether it is rural or urban. It is important to know the differences in coverage; it can save you time and money. It also can be a solution for issues that would otherwise delay closing for months or be too expensive to remedy.
Rural Setting A business professional is buying a seasonal property on a lake to get away from the city. The property includes a massive boathouse on
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Each title insurance policy is tailored to address the specific nature of the property, whether it is rural or urban. the water that concerned her Notary because the Crown owns the land along the shoreline. The Notary orders a title insurance policy for the client, containing the waterfront endorsement providing coverage in the event she is forced to remove her boathouse. The property’s access is only by private road informally shared by all the neighbours. No easement is registered on title legally allowing access to the private road. The Notary discusses the issue with the title insurer who is able to include an identified risk endorsement
The Society of Notaries Public of British Columbia
in the policy for that issue. The endorsement provides coverage in the event the insured is prevented from using the road for access. The title insurer also agrees to issue the same coverage to the next purchaser of the property so the insured won’t have an issue when she sells.
Urban Setting A first-time homebuyer just purchased a strata unit in Victoria. She calls her BC Notary after closing; the strata corporation issued a special assessment for $2000 regarding water arrears for the whole building and she cannot afford the unexpected cost. It turns out the strata corporation had issued notice of the arrears 2 months prior and failed to disclose it on the Form B certificate. The Notary had recommended title insurance to the homebuyer. After submitting a claim, the owner is reimbursed the $2000 by the title company.
Volume 27 Number 3 Fall 2018
