Chicago Title Settles $102,000 in Unpaid Real Estate Taxes
Managing and scaling a business is not for the faint-hearted. Each day is accompanied by challenges and surprises. One of the ways commercial property can be affected includes sudden expenses from compliance issues and losses due to fraud or identity theft. Sometimes, this could also encompass unpaid real estate taxes that are discovered after an assessment imposed on title by a governmental authority.
Reassessed Real Estate Property Tax Notification
This is precisely what happened with a commercial property owner recently. A commercial real estate lawyer conducted the standard due diligence that any prudent real estate solicitor would do on a purchase transaction. It was then the solicitor came across a Real Estate Tax Reassessment Notice. The Notice inadvertently indicated the basis of the reassessment was the real estate property taxes were too high, and in all probability, the purchaser would receive a refund. The solicitor took no further action, a Commercial Title Owner’s Policy was issued with no exception noted on Schedule B, and the transaction closed. A few months after closing, the insured received a Reassessment Notice relating to the unpaid real estate property taxes. The notice indicated the insured owed $102,000.00 in unpaid real estate taxes.
The Chicago Title resolution
Fortunately, the insured had a commercial owner’s title insurance policy, and he notified Chicago Title of the Reassessment Notice and filed a claim. Since the reassessment commenced prior to the Date of Policy, Chicago Title considered this a pre-existing lien. Chicago Title accepted this claim and paid $102,000 to clear the matter from the title.
A Commercial Title Insurance Owner’s and Loan Policy provides coverage for lien resulting in unpaid real estate property taxes or assessments imposed on title by a Quai-Governmental Authority on the date of closing.
Fortify your business with a commercial owner policy
It’s always a good idea to ensure that you have a commercial owner policy to provide coverage for issues like this. The small premium can pay huge dividends.
Take advantage of our comprehensive coverage solutions. To learn more, visit CTIC.ca