In this age of competitive, seemingly non-stop, year-round construction projects, it is not uncommon for contractors and suppliers to go unpaid for their work. These individuals need a way to recoup their earnings and often turn to construction/mechanic liens for resolution. In Québec these liens are referred to as legal hypothec for construction.
Liens allow a contractor (or other professional) who has supplied labor or materials to a property they’ve worked on to make a claim against that property’s current owner(s) if not paid for their services, effectively forcing payment of the debt.
Unfortunately for unsuspecting homeowners, these claims can be crippling financially, not to mention the stress and hassle they cause.
“Lien” on title insurance
Most comprehensive title insurance policies can ensure homeowners are protected against construction/mechanics liens as well as many other serious issues. For a low, one-time fee that covers the insured(s) for as long as they own the home, homeowners can purchase a title insurance policy geared to their needs and based on their province of residence.
Our coverage in the news
Consider the recent case of Mr. Perreault, a condo owner in Québec. Mr. Perreault describes the “hell” he experienced when he was affected by multiple legal hypothec claims from those those who built the walls, floors, and even did the digging for his new condo. He was at a complete loss as to what to do, overwhelmed by the scope of the problem and the looming financial impact. That is until FCT took over and laid the foundation for the support and resolution he needed.
*name changed to protect privacy
Insurance by FCT Insurance Company Ltd. 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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