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
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.
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