Post-Policy Date – Encroachments, Restrictions & Work Orders

Real Estate Type: Commercial

Policy Type: Loan policy

Coverage:
The Post-Policy Date – Encroachments, Restrictions & Work Orders endorsement may be added to a commercial title insurance loan policy. This endorsement provides coverage for loss or damage resulting from the following matters arising after the Date of Policy when the borrower:
• builds something without the required building permit or occupancy permit or 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),
• receives a work order or deficiency notice and doesn’t complete the work,
• violates a covenant, condition, limitation or restriction in a document or instrument registered in the Public Records on the Date of Policy, and
• the borrower’s neighbour builds a structure that encroaches onto the borrower’s land.

Exclusions:
This coverage is not available for private lenders and is only applicable for 1st or 2nd priority mortgages.

Fee: $100.00

Coverage Qualifier: n/a