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Cannabis, lenders and title insurance


Even though many cannabis producers are now licensed by Health Canada and people are allowed to grow up to four plants at home (in most provinces), some people could choose to be small producers and operate illegally. For situations like this, FCT has an endorsement for lenders, providing compensation for certain losses incurred as a result of this type of prohibited practice.

When a loan policy is issued to a lender for a property, the lender has a Controlled Substance Endorsement. The coverage offered by this endorsement includes:

  • loss from a government order to remedy the problem (i.e. repair and decontaminate the house);
  • costs incurred for reconnecting utilities;
  • costs to comply with all regulations, laws and government orders that add to property taxes because of their priority.

Lenders get this endorsement, which will also guarantee the priority of the mortgage and protect them against 27 different risks, by simply purchasing title insurance from FCT.

If you have any questions about this coverage, don’t hesitate to contact us!


Insurance by FCT Insurance Company Ltd. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.


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