Make a Claim

The importance of title insurance in commercial real estate


Commercial property owners are facing great challenges right now. Since the start of the pandemic and the government-mandated lockdown, they’ve had to come up with new and innovative solutions to continue operating their businesses. The one thing that has remained constant even amid the new reality is the value and importance of a title insurance policy and the protection that it offers.

Many owners are currently dealing with mortgage restructuring and Debtor-in-Possession (DIP) financing. Imagine having to deal with a lien, a defect, or an encumbrance on your title while also in the middle of a global pandemic. Now imagine it costing you $97,343.84.

That’s what happened to John Smith.


Protection against liens and encroachments

John discovered that the parking spaces (13 in all) and garbage pad his commercial property was using were not on his land but used by the previous owner under a “Permission to Use” provision. Since the disputed spaces also provided access to the main road, this posed a significant problem.

John initially purchased the land with the intent to convert some of the now disputed spaces into apartments. As you can imagine, finding out that he didn’t actually own the spaces halted all of his plans. To add another layer of difficulty, the landowner of the disputed section, insisted that John purchase the space for $97,343.84 if he wanted to continue using it, rather than just extending the “Permission to Use”.

Luckily for John, he had a title insurance policy with FCT.

At FCT, we’re invested in helping our customers succeed. Our commercial title insurance policy has helped to protect many property owners from having to pay large, unforeseen out-of-pocket expenses. Just as it did for John.

Once John’s claim was approved, we stepped in and paid the amount needed for him to purchase the land so that he could continue with his apartment building project free from worry.

It’s not always possible to plan ahead for every contingency. But with a commercial title insurance policy, you can mitigate many unforeseen risks and get peace of mind at a time when there is great uncertainty.



*The name of the individual mentioned has been changed to protect his privacy.

Subject to certain exceptions, commercial title insurance policies equal or below $10M CAD are provided by FCT Insurance Company Ltd. Commercial title insurance policies above $10M CAD are provided by First American Title Insurance Company. Reference should be made to policy documents to confirm the insurer on any individual transaction. 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.


® Registered Trademark of First American Financial Corporation.

Subscribe to the FCT Blog

Access a world of knowledge, inspiration, and expertise delivered straight to your inbox. Stay informed, stay inspired – sign up today!