Title Insurance Safeguards in British Columbia

John Rider Andrea Campbell

The 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 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 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.

Whether you are buying in the city or the country, title insurance has the coverage you need to protect the biggest investment of your lives.

Two millennials recently expanded their family and are able to buy a detached home in the city. The home is old; based on the lot lines, the roof’s eaves encroach onto a laneway owned by the City of Vancouver. Obtaining permission from the City for this encroachment is expensive and will delay closing. Instead, the Notary calls the title insurer who is able to include the identified risk enforced removal endorsement in their policy. It protects the insureds from loss if they are forced by the City to remove the eaves in the future. Coverage can be offered to the next purchaser, as well, giving the insureds relief that they won’t have to revisit this issue when they sell.

Whether you are buying in the city or the country, title insurance has the coverage you need to protect the biggest investment of your lives. Risks like survey issues, unpaid realty or vacancy taxes, fraud and forgery, zoning violations, noncompliance with municipal agreements, work orders, unpermitted work, defence costs, and transactional errors can be avoided for a low one-time premium. s The stories in this article are based on real situations with the intent to provide general information on title insurance. For specific details regarding policy coverages, exceptions, and exclusions, please contact Chicago Title for copies of the complete title insurance policy. John Rider is Senior Vice President, Retail and Commercial Title Insurance, of Chicago Title Insurance Company Canada. Andrea Campbell is Director Underwriting, Chicago Title Insurance Company Canada.

Mercedes Wong Personal Real Estate CorporaMercedes Wong, CCIM, FRI, RI tion, CCIM, FRI, RIMercedes Wong Personal Real Estate Corporation Senior Commercial Manager President / Commercial Division

C: 604.808.2571 E: mercedes@telus.netPICPA, Vancouver

201–179 Davie Street Vancouver, BC Canada V6Z 2Y1 www.mercedeswong.com C: +1.604.808.2571 O: +1.604.899.2333 E: mercedes@telus.net

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