How are customer complaints handled at FCT?
We have a three step complaints handling process: 1) initial contact; 2) escalation to a complaints handling representative; and 3) the General Insurance Ombudsman.
The General Insurance OmbudService (GIO) is an independent dispute resolution service dedicated to resolving disputes fairly and professionally.
What is a land or property title?
When you buy a home, you are in effect buying the title to the property, which is commonly referred to as a "deed" or "transfer of land". This means that you own the property and you are registered as the owner in a provincial land registration system in Canada.
Why is it important to insure your property title?
You want to secure your title because it means that you will be able to sell your property in the future or obtain financing against your home. Title insurance protects the insured against title fraud and from loss in the event that their title is not as stated in their owner's title insurance policy.
What is Owner's title insurance?
To protect your ownership, a title insurance policy provides coverage in the event that your right of ownership is challenged or a loss occurs due to a covered title defect or a claim against your title. The Financial Services Commission of Ontario provides a helpful brochure on Understanding Title Insurance.
How is title insurance different from other types of insurance?
Title insurance is a one-time cost with no annual premiums. The owner(s) pays for the policy at the time they acquire title to real property which forms part of their legal costs. There is no negotiation on premium as it is based on the value of the home. Title insurers provide their customers with a no fault, no deductible claims process. This policy remains in place for as long as the insured has an interest in the property and the coverage continues to protect a spouse who obtains title to the property during a divorce or anyone who inherits the title.
How can FCT's title insurance provide a cheaper, faster & less costly closing process?
Title insurance can provide coverage over many known defects that arise prior to closing, allowing the transaction to close on time, avoiding additional legal costs and/or penalties. In addition, most lenders will accept a policy of title insurance as an alternative to an up-to-date survey (real property report) on a purchase or refinance mortgage. Title insurance may also reduce the amount of legal work on a purchase file as the home buyer is insured against actual loss that would have been revealed in off-title searches.
Doesn't the land title system provide coverage for owners?
The land title system provides basic protection but does not cover some of the most common issues - specifically, encroachments, forced removal due to lack of permits, open permits, liens as a result of arrears of realty taxes or utilities, and zoning or building violations.
How much does an owner's title insurance policy cost?
The title insurance premium is based upon the value of property or mortgage. For more information, please email firstname.lastname@example.org or call 1.877.888.1153.
What is real estate fraud?
Real estate fraud against a homeowner occurs when someone fraudulently uses a homeowner's identity to assume the title to their property and then sells the home or takes out a new mortgage.
How prevalent is real estate fraud?
While there are no national statistics on real estate fraud, for the past three years, FCT has investigated, on average, over $120,000 a day of suspected mortgage and title fraud. In partnership with legal and lending professionals, the fraud-detection experts in our underwriting department have uncovered indications of potential fraud valued at over $100 million in residential mortgages and real estate transactions.
How does FCT title insurance protect me in the event of fraud?
Once a claim is filed, the policyholder receives the following benefits:
- No out-of-pocket expenses for legal advice, or reports to rectify title or defects (these legal costs are covered in addition to the policy amount)
- Our expertise to restore your title so you will not have to expend your own personal time or resources
- The convenience of a one-window access through FCT to deal with the myriad of courts, government agencies & departments and professional insurers
- Greater coverage as a title insurance policy contains an increased policy amount for up to two times the purchase price of their home, based on the current market value, in the event of loss as a result of a covered risk. Most land title systems only offer the basic coverage of the value of the property at the time the fraud or other issue occurs. While land title systems provide some coverage, land registry systems do not have a compensation fund
How do I protect myself in the event of real estate fraud?
The Financial Consumer Agency of Canada advises that you consider purchasing an owner's title insurance policy in its helpful guide on Protecting yourself from Real Estate Fraud.
Is there an industry association for title insurers?
Yes, the Mortgage and Title Insurance Industry Association of Canada (MTIIAC) is an industry association of federally regulated mortgage and title insurers. The Office of Superintendent of Financial Institutions (OSFI) regulates our insurance company members’ operations federally, and its provincial counterparts regulate our activities in each of the provinces.