Marijuana, lenders and title insurance
As you may already know, starting October 17, the recreational use of marijuana will be legalized in Canada. However, growing marijuana at home is prohibited in a few provinces, including Quebec.
Even though many marijuana producers are now licensed by Health Canada, 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 or leave a comment!
This is for general information only. For specific coverage, please refer to your title insurance policy or an FCT representative.