New Commercial Loan Coverage from FCT

Introducing the Post-Policy Date – Encroachments, Restrictions & Work Orders Endorsement.

FCT’s number one priority is to help you provide the best advice to your clients, including the importance of mitigating lender risk. That’s why FCT is now offering a new post date of policy coverage on commercial loan policies.

FCT’s new coverage offers lenders more protection that only an FCT commercial title insurance policy can provide. It’s impossible to know what the future holds—what changes a borrower may make to their property, or whether they will comply with municipal permits, restrictions or future work orders. There’s no way to know whether or not a neighbour will build a structure that encroaches onto the borrower’s land. But now, lenders can face the future with greater confidence.

The new Post-Policy Date – Encroachments, Restrictions & Work Orders Endorsement offers added protection for the lender against loss or damage resulting from the following matters arising after the Date of Policy*:

  • The borrower builds something without the required building permit or occupancy permit,
  • The borrower builds something that encroaches onto adjoining land or too close to the lot line (in violation of building setback requirements that were in effect on the Date of Policy),
  • The borrower’s neighbour builds a structure that encroaches onto the borrower’s land,
  • The borrower receives a work order or deficiency notice and doesn’t complete the work,
  • The borrower violates a covenant, condition, limitation or restriction in a document or instrument registered in the Public Records on the Date of Policy.

Protect your commercial lender clients today!

This coverage is available as an endorsement for an additional $100.00 premium. To order this endorsement, simply add it to your order. If you order by phone, we will ask if you wish to add the endorsement to the lender’s policy.

For more information on this new coverage, please contact your FCT Business Development Manager or our Commercial Solutions underwriting experts.

National (excluding Quebec) |    8:00 a.m. to 8:00 p.m. ET (Mon-Fri)

Phone: 1.866.804.3112

Quebec |   8:30 a.m. to 5:00 p.m. ET (Mon-Fri)
Phone: 1.866.744.8962

*This coverage is not available for private lenders and is only applicable for first or second priority mortgages.

November 15, 2021