Title insurance claims glossary
Please refer to your own policy for the complete and exact wording. In the event of any inconsistency between the wording below and that in an issued policy, the wording in the policy will prevail.
- Actual Loss
This is the difference between the value of the land we have insured and its value subject to the risk insured under the Policy.
A professional who investigates the nature of a claim and assists us to determine the extent of liability under the Policy.
- Agreement of Purchase and Sale, Contract of Purchase and Sale, Purchase Agreement or equivalent
The written contract between a seller and buyer for the purchase and sale of a particular property setting out the price together with terms and conditions. This is usually prepared by a realtor.
A professional who provides unbiased and impartial opinions as to the market value of a property in the context of a claim under the Policy.
- Certificate of Insurance
The particulars of coverage issued to a lender and typically attached at the end of a Policy where an Insured home owner has purchased Land with a mortgage in place.
A formal request to FCT for coverage against risks and losses under the Policy issued.
- Claims Handler
The FCT claims team member assigned to manage your claim.
- Claims Lawyers
Our lawyers handle all files involving litigation, fraud, provide support to our Claims Handlers and review every file where coverage is declined.
Provisions within the Policy that identify circumstances under which coverage is or is not provided.
The risks or liabilities covered under the Policy issued to you by FCT.
- Duty to Defend
FCT’s obligation to provide you with legal defence to claims made against you pursuant to the Policy.
Additional provisions that can either add or remove coverage and/or provisions contained within the Policy Jacket and are found after the Schedule B Exceptions.
- Exclusions (standard in the Policy Jacket)
The Policy issued contains standard exclusions that apply to every Policy that is issued.
- Governmental Authority
Municipal, provincial or federal bodies (departments or divisions thereof) with jurisdiction concerning matters of building and zoning.
The person, persons, institution or entity as noted in Schedule A and covered by the Policy.
The real estate or property with or without improvements which is insured by the Policy.
- Local Authority Search
Those searches of local government records customarily undertaken in the normal course of a real estate transaction by a solicitor or notary specific to the location of the Land insured under the Policy.
A legal agreement by which a creditor provides a loan in exchange for security over Land. Also known as a charge, hypothec or other security instrument.
The Policy that has been issued in exchange of a premium to the party noted as the Insured in Schedule A.
- Policy Amount
This is the amount of insurance shown in Schedule A.
- Policy Date
This is the date the Policy commences as shown in Schedule A.
- Policy Jacket
This is the standard form of contract that contains the covered risks, exclusions, conditions such as definitions, how to make a claim and limitation of liability.
- Report on Title
This is a letter from your lawyer or notary that sets out what was completed, decisions made, issues raised and direction and acknowledgment given as part of the real estate transaction. The letter will also include a number of enclosures that support what was undertaken, such as title searches, plans, agreements, by-laws, and other documents.
- Mortgage Terms
- Statement of Adjustments
- Title Policy
- Statement of Account (i.e. what you paid for the lawyer’s/notary’s services)
- Schedule A of the Policy
This lists the commitment of insurance particulars such as policy amount, policy date, insured, who holds title, the municipal address and legal description of the property being insured.
- Schedule B Exceptions
These list specific exceptions from coverage which have taken into account either FCT underwriting decisions, information supplied when the policy was requested and/or are based on the nature of the property being insured.
- Statement of Adjustments
A document that sets out the purchase price, credits the deposit and prorates any prepaid items such as property taxes and condo fees as between the buyer and seller.
- Status Certificate/Estoppel Certificate
A document provided by the condominium corporation to buyers of resale condominiums that provides a snapshot of the unit as at the date the certificate is issued e.g. information regarding common expenses of the unit, any special assessments that may have been levied, insurance, copies of the condominium declaration, by-laws and rules, a copy of the most recent reserve fund study. If the building is serviced by a property management company, it is prepared by the property manager.
Depending on the region it may be called a building location certificate, real property report or certificate of localization whereby a Surveyor undertakes the process of measuring the legal boundaries of a particular area of land and identifies other features of a property that might be needed when it comes to solving issues that may be covered by the Policy.
A professional who estimates or measures the legal boundaries of land and identifies other features of a property the output of which is a “Survey” (or its regional equivalent).
Ownership of the land insured as shown in the applicable Government Registration Office and reflected in Schedule A of the Policy.
- Transfer/Deed of Land
The official form/document submitted to the applicable Government Registration Office in which a seller conveys to the buyer ownership rights to a property. In Ontario, title transfers can only be completed by a lawyer.
- Vendor’s Undertaking to Re-Adjust
A form of written undertaking given by the vendor on closing to readjust, after closing, the items on or omitted from the Statement of Adjustments, including property taxes, forthwith upon written demand, if necessary.