How can you build a home if you don’t have access to the land?

By FCT

Monica and John* purchased a vacant triangular-shaped lot to build a new home on. The only access to the lot was from one corner fronting onto the road. Attached to the offer of purchase was an old survey showing that the frontage onto the road was a little more than 14 feet. Monica and John verified that this was permitted by the zoning bylaw. However, when the couple applied for a building permit, they got an up-to-date survey which showed that the actual frontage onto the road was only two feet. This shocking news meant they now owned an inaccessible piece of land, instead of a place to build a new home.

Luckily, Monica and John had a homeowner policy and were able to call FCT for help. We attempted to buy strips of land from the adjoining landowners to increase the frontage, but unfortunately the municipality’s conditions for the severance wouldn’t allow it. As a result, FCT paid out the full policy amount and took over the title to the property.

An owner’s title insurance policy from FCT is an essential addition to any property purchase as it offers a number of benefits to homeowners. It protects you against issues like title fraud, lack of permits, tax and utility arrears, unknown outstanding work orders, etc. And it’s not just for houses; title insurance protects condo owners and commercial property owners as well. It offers coverage for construction liens, failure to disclose information on the status certificate that would result in a special assessment or increase in common expenses, municipal issues, and more.

Do you have any questions about title insurance for property owners? Let us know in the comments section!

*Names changed to protect the privacy of our customers.

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