How Title Insurance Helps Small Business Owners
Oct 11th, 2017 | By FCT
Starting a business can be risky, and small business owners may not always have enough money on hand to deal with unexpected real estate issues. When Andrea* purchased a two-story building, she was thrilled to be so close to fulfilling her dream of owning a small business. The main floor of her building was zoned as commercial, where she planned to sell antiques, and the top floor was zoned as residential so she could live there.
Andrea’s lawyer had done a zoning search before closing and confirmed that it was in compliance with the zoning bylaws. However, shortly after closing, she received a notice from the city that the building was in violation of the city bylaws. She remembered that her lawyer had advised her to obtain an owner’s title insurance policy, so she called us right away!
We learned that the city had provided the wrong response to Andrea’s lawyer when the zoning search was conducted. We then had to work with the city to fix the zoning defects. This saved Andrea thousands of dollars in legal and application fees. Without a title insurance policy, this unexpected issue could have run her out of business before she even started!
Title insurance can help small business owners across Canada protect the title or ownership of their property. It covers the cost of legal fees related to a covered risk and can cover losses as a result of survey issues, errors in responses from public officials about searches and more. The great thing about FCT’s title insurance is that we can customize our underwriting to suit your unique situation.**
As a small business owner, do you have the coverage you need to protect your property?
*Name has been changed to protect the privacy of our clients
**This is general information only. For specific coverage, please refer to your title insurance policy or an FCT representative.