When a young couple’s dream turns into a nightmare
Buying a first home is often a very exciting and joyful milestone. Unfortunately, there’s an all too common scenario—a young couple spends almost all their savings on the purchase of a new condo, and their dream come true takes a frightening turn.
Shortly after moving into their condo, the new homeowners learn that several subcontractors involved in the construction of their building weren’t paid and have construction liens against their property. On top of that, the builder-seller of their condo is about to declare bankruptcy.
In this case, they would have to deal with fees of up to $75,000 (lawyer’s fees, payment to subcontractors, discharge, etc.) and the situation could take years to resolve. Having just bought the condo, they have no money to spare and are in a scary situation.
They could avoid both the stress and financial loss with a title insurance policy from FCT. Also, if they ever had to sell or refinance their property before the settlement process was completed, we would issue title insurance policies to the buyers and their potential lender for free to facilitate the transaction.
While condos may be more affordable than houses in many cases, expensive issues can still arise. When you’re making a big purchase like a home, it’s important to take the time to be informed about all your options. For a few hundred dollars, you would be covered for as long as you own your home. The cost of a title insurance policy can range from $150 to $350 for a property valued between $200,000 and $500,000.
Do you have any questions about title insurance? Ask us in the comments!
This is for general information only. For specific coverage, please refer to your title insurance policy or an FCT representative.