What one missing detail in a real estate deal can cost

May 5th, 2022 | By FCT

When Caleb Stevens* closed on the purchase of a small commercial property in a sleepy Ontario suburb, everything had gone smoothly. Except for one small mistake, which would go unnoticed for over a year.

Almost 15 months later, Caleb’s client sent him an angry email because they had been charged over a thousand dollars in late fees on their property taxes. It turned out Caleb’s office had inadvertently forgotten to send the change of ownership notice and client’s mailing address to the City when the transaction closed. Because of that, the client didn’t get the tax bill until they had racked up $1,639.41 in fees.

Caleb would have had to reimburse his client’s losses out of his pocket, but he was protected. He supplements his mandatory E&O coverage with an E&O Complete policy from FCT. It provides direct, hassle-free coverage for claims under $10,000, so Caleb didn’t even have to take on a loss and apply for reimbursement.

We covered the full amount, with zero deductible charged from Caleb’s mandatory E&O insurer. His client was paid the losses incurred as a result of their late fees, and Caleb got back to his practice.

For Caleb, one of the biggest worries was getting things resolved quickly. And thanks to E&O Complete, he was able to do just that. But not every legal error plays out as smoothly as this. Real estate law is one of the riskiest areas of practice, and errors and omissions on real estate transactions can often take years to turn into claims.

Don’t let issues from past files follow you into retirement. Protect yourself for life with E&O Complete from FCT.

 

 

 

* Name changed to protect the privacy of the insured

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. Insurance brokerage services by FCT Insurance Services Inc. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.

 

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Categories: Legal Professionals

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