Why title insurance is important to condo owners
Jan 22nd, 2021 | By FCT
There seems to be a persistent misconception among some condominium owners that title insurance is an unnecessary expense.
They couldn’t be more wrong.
What happens if the condominium corporation, in violation of its legal obligations, did not disclose a situation that would give rise to their right to levy a special assessment to bolster the reserve fund? Or they decided to pay for new patios, terraces, balconies, roofs or parking garages? And what if they informed you that you were now on the hook to the tune of $20,542.09?
Get title insurance for your condo
That is exactly what happened to Justin Case* in July of 2020. The condominium corporation failed to disclose, as required by law, the assessment in the status certificate. He was not prepared for the additional expense. But Justin had a title insurance policy with FCT and that’s when we stepped in to help. We paid the full amount of the assessment, taking the complete financial burden off his shoulders, leaving him deeply relieved.
As with Justin’s case, there are a host of unexpected issues that can pop up for condo owners, costing them thousands of dollars, including:
- The lack of necessary permits
A previous owner renovated without getting the required permits and the municipality is forcing you, the new owner, to fix it.
- Tax and utility arrears
The taxes and utilities of the previous owners are not up to date and it falls on you to pay it. This coverage is especially relevant in Vancouver as it protects new owners against the Empty Homes Tax.
Someone impersonates you to get a mortgage on your property or to sell your condo without your knowledge.
- Outstanding work orders
There were unknown outstanding work orders before the date of the policy.
A title insurance policy is a one-time cost that will provide peace of mind and allow you to enjoy the benefits of condo ownership without worrying about potential financial pitfalls.
Contact us at 1.866.804.3112 to find out how title insurance can protect you.
* The name of the individual listed in the above article has been changed to protect their 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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